eBay Store Sellers Try to Strike Back
eBay Store owners posting on discussion boards last week reacted strongly to eBay’s announced fee increases. Sellers are considering various options, from “clearing out deadwood” inventory, to taking the drastic action of closing their Stores.
eBay is increasing both listing and commission (Final Value) fees for Store inventory effective August 22. Listing fees will rise 150 percent for items under $25 and will rise 400 percent for items priced at $25 and over. Commission fees will rise 25 percent for items $25. For items priced over $25, the percentage increase in rates is variable depending on the selling price (http://pages.ebay.com/sell/announcement200607/overview/fees.html).
The way the fee increase is structured, some items and categories are affected more than others. For low-margin sellers whose strategy is to make money through a high volume of sales, the news was devastating. For instance, a $15 Store item, assuming it sells in the first 30 days of being listed, nets eBay $1.22 in base fees currently, and this jumps 27 percent (33 cents) to $1.55 under the new fee structure. Sellers in the media category (DVDs, CDs) are bound to be particularly hard-hit.
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