posted on March 15, 2011 08:44:00 AM new
I just got this email from ebay. So now if it cost $150 to ship a chair - I've got to pay a FVF on that. I'm already eating the cost of packing materials. Are they serious!!
I like the 50 free but I doubt that will cover what I'll be paying out of pocket for shipping.
"Your upfront cost of selling on eBay is about to be dramatically reduced once again!
Starting April 19, Standard Auction-style fees will be changing. You'll be able to list FREE at any start price--up to 50 items a month. Plus you can add the Buy It Now option FREE to grab those buyers who don't want to wait for your listing to end. In short, you can now list even your higher priced items free--pay only if it sells.
Also, we know online buyers pay attention to shipping costs when deciding what and where to buy. That's why, to encourage low-cost shipping, Final Value Fees for all sellers will be applied to the total amount of the sale, including shipping. Just keep your shipping costs low to get the lowest overall fees."
posted on March 15, 2011 09:02:27 AM new
Well,for those who sell an item for 99 cents and charge 65 dollars shipping,their FVF wil be based on 65.99 dollars not 99 cents
*
There is no 'Global savings glut',only wild horses and loose bankers.
posted on March 15, 2011 09:02:47 AM new
"that's why, to encourage low-cost shipping"
ROFLMAO!!!
For who???
This is why I started offering "free shipping". It allows me to charge whatever I want and bundle the shipping costs in while also getting automatic 5 stars on my shipping costs. My DSRs on costs were really hurting me b/c buyers don't understand shipping costs.
I generally only sell Fixed Price, so I also have Make an Offer and use it to determine what my shipping costs will be for certain buyers. I can take a bit less for those closer to me vs. those further away where shipping is more expensive.
One thing to note: I am going to start adding a disclaimer on my listings that state, "buyer zip code must be correct when making an offer, otherwise offer will be void." I use their location to determine my shipping costs.
posted on March 15, 2011 09:14:52 AM new
I only got this notice on my non-store ID so I assume that's the only ID that will get 50 free.
FVF on shipping will, of course, apply to all sellers.
posted on March 15, 2011 09:22:54 AM new
Below is the email I got to my store account. I rarely used the free shipping option, I expect my fees to go up (even though Ebay claims they will go down)
We know that online buyers pay attention to the total cost of an item--including shipping--when deciding what and where to buy. That's why, to encourage low-cost shipping, starting July 6 Final Value Fee rates for Store sellers--Fixed Price and Auction-style--will be reduced and then applied to the total amount of the sale--including shipping.
The best way to minimize the impact on your overall fees is to take advantage of the available ways to reduce your shipping costs and charges.
5% PowerSeller discount retired--aim now to be an eBay Top-rated seller to earn 20% off
Also, starting with your June invoice, the 5% Final Value Fee discount for PowerSellers who are not eBay Top-rated sellers will be retired (all other PowerSeller benefits will continue). So be sure to check your Seller Dashboard for up-to-date information on your rating and what you can do to achieve eBay Top-rated seller status and earn a 20% discount as soon as possible.
New eBay Shopping Cart
Online shoppers are accustomed to adding items to a shopping cart--and they're often motivated to buy more. That's why we're introducing the new eBay Shopping Cart that works with both Fixed Price and Auction-style items. Buyers can add items from multiple sellers and pay in one easy checkout--making it easier and more likely for them to buy more. It will become the way to shop on eBay before the 2011 holiday season.
New communications hub
Starting in May, you'll be able to manage your communications with buyers from just one location within My eBay. View the emails that eBay sends to buyers after a transaction, manage your buyer-facing Automated Answers, or access your Store newsletters--all from one convenient page.
Category and item specifics changes
Category and item specifics changes are also consolidated with rest of updates. Find out if your listings are impacted.
Get details on the 2011 Spring Seller Update.
For more insight, you're also invited to:
* Talk with members of my staff during the next two days on a special discussion board we've set up for this purpose.
* Join me and other leaders from eBay in a Town Hall meeting on Wednesday, March 16.
* Take part in the upcoming webinar on Thursday, March 17.
posted on March 15, 2011 09:29:29 AM new
Here is what my message looks like (I have removed the bottom part that seems to be redundant):
Seller fee update coming in July:
Thanks to your low-cost shipping, you'll keep the same low fees you have today.
We know that online buyers pay attention to the total cost of an item--including shipping--when deciding what and where to buy. That's why to encourage low-cost shipping, starting July 6 Final Value Fee rates for Store sellers--Fixed Price and Auction-style--will be reduced and then applied to the total amount of the sale--including shipping.
The good news for you: Just keep your shipping charges low and, based on your recent selling activity, you will see little or no impact on your overall fees. Consider ways to further reduce your shipping charges, and your fees could even be lower than they are today.
posted on March 15, 2011 10:23:31 AM new
I've read over all the fees, current and "new" and can see no advantage to store subscribers. I am thinking that they still want to do away with stores.
For non subscribers, the free listing is a great deal if you have high priced items.
The big crock is paying between 12 and 7% on actual shipping. I do not see the good news any way you slice it: "The good news for you: Just keep your shipping charges low and, based on your recent selling activity, you will see little or no impact on your overall fees. Consider ways to further reduce your shipping charges, and your fees could even be lower than they are today." If you sell heavy items and use calculated shipping, you are going to get hit hard.
Please, if my thinking is flawed, let me know. This gets too complicated for me.
posted on March 15, 2011 10:40:15 AM new
No Merrie - you pretty well summed it up.
I'm not sure what this is going to do for my ebay business as my main ID deals mostly with furniture. An extra 25 to 50 cents isn't going to matter but add an additional $20 or $30 per item sold - well that's going to add up fast.
posted on March 15, 2011 10:41:02 AM new
Ebay is now going to get Final Value Fees on shipping costs as well as the selling price....nothing suprises me from Ebay and I have sold on here for over 10 years...got to be the most GREEDY ever.....Amazing....they try to cloud the facts and make it sound like it is to the sellers advantage....HAHA...we are not that stupid
posted on March 15, 2011 10:48:02 AM new
Well, I think Ebay has made some decisions for me. I will list like hell for the next few months especially items that I can sell in lots and things I have been too lazy to list as yet that are heavy, both store and non store ID, then will likely close my store. Take advantage of the free listings, can use another "vendor" for scheduling and additional pics and slowly after next year's holiday season say good bye to Ebay except for occasional items I discover, inherit or keep tripping over.
posted on March 15, 2011 11:47:50 AM new
Hold up a sec.
I know we are looking at how it affects each of us, but we do have to be careful how we present things.
Each of us sells different items, and by what I see, sellers who specialize in small/low dollar items that shipping costs are a large percentage of their total sale is going to see the biggest increase in fees.
Bill uses 11% for shipping costs, but the reality is that the percentage is significantly lower for items that are valued much higher.
For example: I sell an item for $50 and get charged about $6 (12%), but when I sell a piece of furniture for $4000, my fee percentage is much lower (maybe 6-7%).
I have already factored in my shipping and Final Value Fees when I offer Free Shipping. I understand everyone's frustration in this, but its not like we didn't see this coming. In fact, I bit the bullet months ago and started offering Free Shipping and bundling my fees and shipping into the price.
1) reduces people's complaint about fees.
2) no shipping fee refunds.
3) buyers can't rate me on shipping cost DSR.
4) I get a 5.0 DSR on shipping rates
5) 5.0 DSR on shipping means I keep my 20% much easier
6) I sell more b/c buyers like the idea of "free shipping" even though there is nothing free about it.
posted on March 15, 2011 12:10:26 PM new
I am not sure I agree with Bill's math since he is adding the 11% + 11% and it is basically 11% of the total (including shipping), not 25% of the total, so if you sell something for $100 + 20 shipping, you are going to pay 11% on the total of $120 instead of just 11% on the $100. I am just making up these %, I know they vary according to amount and category.
The point is it going to cost the seller more fees. Ebay gets upset if you overcharge on postage and so do buyers, so I do not see how you can cover the increase.If I pay 11% of an actual calculated postage fee of say, $10, I am going to lose money on every transaction. I am sure there are ways around it, like shag does, but it gets very complicated.
posted on March 15, 2011 12:16:59 PM new
The shipping fee must follow the FVF structure. At $25 the fee is 11%, while at $50 the fee is 9.6%, at $75.00 the fee is 8.4%, and at $100 the fee is 7.8%.
So, if I want to ship an item safely and securely to Australia using USPS Flat Rate Priority Mail, which would cost $13.95 + $1.00 handling fee = $14.95, I would pay eBay an extra $1.64. The handling fee normally covers cost of supplies.
posted on March 15, 2011 12:17:39 PM new
It isn't complicated at all. Most of my items are medium size, so I know my rates aren't going to be $8-35 depending on weight, so I just add that to my fees and adjust from there. Larger items I check the cost of shipping from Oregon to Florida so I know the highest rate I will be charged.
It has served me well. If you sell the same thing/size over and over again it is even easier.
Oh, and no combined shipping discounts.
[ edited by shagmidmod on Mar 15, 2011 12:17 PM ]
posted on March 15, 2011 12:22:11 PM new
Silly me. I thought maybe eBay was not going to raise fees this year and I am staying up all night again this year so I can see the Easter bunny.
posted on March 15, 2011 12:31:12 PM new
There is a cost of doing business, so adding $1.70 to the cost of your item can be done by 1) adding $1.70 to the cost of the item, 2) adding $1.70 to the cost of handling fees, 3) divy it up between the two, say $.85 each.
The beauty of free shipping is it only applies to USA shipping. When I sell to someone in Australia, I get the full shipping amount + the amount I save in shipping to someone in the USA.
Is that fair? Probably not, but these are the cards we are dealt by eBay and the buyer still bought the item at the price they apparently felt was fair, otherwise they wouldn't have purchased it.
I know it seems like the seller is getting the raw deal, but think about the customers who will see these costs added to their items.
posted on March 15, 2011 12:40:29 PM new
I'm not sure but somehow this doesn't sound legal. Of course, Paypal has been doing it for years but that's more like bank fees.
I just quoted someone for overnight shipping - it went from $9.95 to $37. Now is it fair for me to have to pay an additional $3.70 (just using 10% for easy math) just because this person waited until the last minute to buy a birthday gift? That will come right out of my profit after this starts.
I know this is ebay way of stopping fee avoidance that some sellers make a daily practice but it doesn't seem fair we should all pay extra for the sellers who do this.
posted on March 15, 2011 12:55:34 PM new
I'm not sure how this wouldn't be legal. eBay can charge us anything they want, we have a choice to use their system or not... just as a bidder has a choice whether to buy something from us or not.
It may be different if eBay was a Monopoly, but obviously that is not the case.
posted on March 15, 2011 01:15:30 PM new
I'm sure they check it out before they did this so it must be legal. Just venting.
But it is charging a fee for something they have NOTHING to do with. We just had a price increase from UPS and USPS but it wasn't as much as this increase will be for heavy items from ebay.
Shag you are correct - it is a free market place and I for one will start looking for a new market for my furniture.
I already do all my own packing to save the buyer money. I don't charge extra for packing materials which are not cheap. If UPS breaks something I end of eating that cost as well.
Oh well another day in the life of an ebay seller.
posted on March 15, 2011 01:21:59 PM new
I normally don't make predictions, but I wouldn't be surprised if eBay starts charging a "pay per click" fee down the road.
posted on March 15, 2011 01:52:46 PM new
I seriously doubt that complaining will make a difference. It seems that every time there is a fee increase, many people ocmplain, somebody coordinates a boycott and some people stop selling all together. I don't recall Ebay ever changing their fee increase plans because of any of those things.
posted on March 15, 2011 02:08:26 PM new
No they probably won't change their fees, but they might wonder why they aren't making as much money as sellers switch over to other venues. This is just too much! They don't have anything to do with shipping and it just isn't right for them to profit off of our hard work to package things right and schlep them to the Post Office. I wonder if the Post Office would like a cut of eBay's profits from shipping??? It might help the Post Office's bottom line and keep the rates from going up so much. Dream land.
posted on March 15, 2011 02:18:19 PM new
Ebay is weeding out the bad sellers,sellers who make money on shipping!
*
There is no 'Global savings glut',only wild horses and loose bankers.
posted on March 15, 2011 02:24:32 PM new
I think they are weeding out sellers of large items. This may come back to bite them!!!
[ edited by ladyjewels2000 on Mar 15, 2011 02:25 PM ]
posted on March 15, 2011 02:33:37 PM new
After reading these posts again, new strategy. Sell the big / heavy items now and sell the smaller, lighter guys later, even do the shag strategy of "free shipping."
posted on March 15, 2011 02:55:46 PM new
I'm not sure why you have to avoid heavy pieces later.
If you sell something for $500, shipping is $50, and your rate is 10%... here is the reality of difference: $5.00
If you can't find a way to make up $5 in that equation, then you probably shouldn't be selling on eBay.
Sellers DON'T have to pay for this increase. You can adjust your prices to make up for it. Who should really be ticked are the buyers who are seeing the increase tacked on.
As eBay fees increase, so will the prices people pay. Where the seller gets hurt is in DSRs if buyers take it out on them.
or keep tripping over.
FVF of 11%)