Home  >  Community  >  The eBay Outlook  >  July 6th eBay FVFs Reduction :)


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 kozersky
 
posted on July 1, 2011 12:55:52 PM new
"Final Value Fee rates will be reduced for all Fixed Price listings--as well as for Stores Auction-style listings--and applied to the total amount of the sale, including shipping."

There are only four days remaining before the lower eBay FVFs take effect. What are your plans?

We are reverting back to a basic store, with less inventory - our "Charity Seal Literature Store+" model. Further, we have elected to retain shipping charges, plus a handling fee.

Bill K-
William J Kozersky Stamp Co.
Charity Seal Literature
William J Kozersky Stamp Co. at eBay
Charity Seal Literature at BidStart
William J Kozersky Stamp Co. at DelCampe
 
 merrie
 
posted on July 1, 2011 03:00:53 PM new
We are changing little except thinning inventory until the fall. Still charging shipping. Tried free shipping. It did not work well for us.


 
 wgonzales
 
posted on July 1, 2011 04:04:23 PM new
I am also still charging shipping separately on most items.
I will wait to see how the numbers look on a monthly comparison over the next quarter before deciding what, if any, changes are needed.

 
 shagmidmod
 
posted on July 2, 2011 08:08:54 AM new
No change on my end. I am still offering free shipping on smaller items so that I retain my 20% discount on FVFs thanks to automated 5.0 shipping fees on DSR. The only time we had our 20% removed was b/c we had a few people give us low DSRs on shipping. They never understand just how much shipping actually costs.

Sales over the summer have been good, not great... but we are focusing on fall inventory and our two local retail locations.

Last month we sold a Saarinen Womb Chair that was in desperate need of re-upholstery for $1750... plus shipping. It was on eBay for 2 days. The previous month we sold an early 1950's Eames Eiffel Tower base shell chair for $1500 including shipping. It was on eBay for 4 hours.

The sales are there for the right things and I am getting a net discount of 1% with the new rates because I already include shipping on 99% of our items.

One new strategy I am considering is for items that have not sold. I am considering lowering the price and adding minimal shipping charges to offset the price.

Whether shipping is free or not to the buyer, we still have to cover our costs.

 
 LtRay
 
posted on July 2, 2011 06:20:03 PM new
**duplicate**
[ edited by LtRay on Jul 2, 2011 06:22 PM ]
 
 LtRay
 
posted on July 2, 2011 06:21:39 PM new
I will still be charging shipping as usual. With our average sales and shipping costs, the so-called "reduced fees" cannot possibly cover the cost of shipping. Our average savings will be less than .50 per listing.

We already offer a significant discount on combined shipments and may increase the discount but we have already tried the free shipping model and it does not pay for itself.

What really ticks me off is how eBay is advertising this as being such a great discount for sellers. Buyers will now expect free shipping and reduced prices. No way does this scenario provide enough financial support for the average seller to offer free shipping.
 
 ebabestreasures
 
posted on July 3, 2011 03:27:18 AM new
I just don't see how I can offer free shipping on my large items so I'm keeping everything as is on that ID.
I may offer free shipping on my jewelry ID for a while and see if it works for that ID. Only time will tell.

 
 alldings
 
posted on July 3, 2011 05:00:12 AM new
Most of my buyers have a few 100 FB's so the "free Shipping" offer means very little. Most or all know that sellers are adding free shipping to the bid or or buy it now price.
I get a chuckle when something I listed does not sell and ebay sends these notes.
"How to improve your sales we suggest you lower your price and offer free shipping."
How nice of them to suggest I give stuff away. If I wanted to do that I could save FVF fees and take the stuff to Goodwill!
 
 merrie
 
posted on July 3, 2011 08:55:12 AM new
eBay can suggest we offer items with unrealistic terms (for us) because all they care about is EBay making money.

 
 merrie
 
posted on July 3, 2011 12:52:04 PM new
I experimented with free shipping to see if it would draw more interest. Since it was an experiment, I did not increase the price of the item to cover costs, so I would have lost money if the items sold at the starting price.

Funny thing, 2 of the items did not sell even with free shipping. Identical items in store with additional shipping cost to the buyer, did sell.

One of the items that did sell with free shipping and no increase in price from the price with shipping fees, the buyer never paid. That actually made me happy in this case.

I am not jumping through hoops for Ebay. Many websites charge shipping and people still buy there. If you use the Zappos model and give free shipping in both directions, you have to realize that you are paying full retail price for that privilege. People on Ebay are not going to pay full retail (IMH0).
[ edited by merrie on Jul 3, 2011 12:53 PM ]
 
 HWAHWA
 
posted on July 4, 2011 08:15:54 AM new
The category I tracked,most sellers are raising shipping fee to 8-10 dollars for a small item(2 by 2 inches ).
*
There is no 'Global savings glut',only wild horses and loose bankers.
 
 wgonzales
 
posted on July 4, 2011 09:38:13 AM new
Well, that makes sense. It you bring the item to the USPS, the small USPS Priority flat rate box + delivery confirmation + $100 insurance = $8.25. I sell many lightweight 2" gemstones that fit this secenariio.

I have had to up my basic handling cost on small items to $3.60-$4.00 in order to cover the DC, insurance and new eBay fee (not to even mention Paypal).

eBay, of course, thinks I should absorb that $8-$10. I would rather pay the FVF than scare bidders away with an item price that appears that much over the market in search. I still need the bidders to click on the item to see the value. "First you have to get them in the door."
[ edited by wgonzales on Jul 4, 2011 09:38 AM ]
 
 HWAHWA
 
posted on July 4, 2011 10:09:49 AM new
These sellers dont want to be rated as a slow shipper and they dont have any boxes for first class mail,so they use USPS priority box.
DC is free with priority mail and insurance does not have to be with USPS,private online insurer is cheaper and less hassles when it comes time to file claim.
But signature confirmation is extra,so that adds to the cost.
With all that business coming from small sellers,USPS share of domestic package business is only 4%,hard to believe but it is coming from the horse's mouth-USPS.
*
There is no 'Global savings glut',only wild horses and loose bankers.
 
 deur1
 
posted on July 5, 2011 03:15:06 PM new
USPS is doing much more business since their
deal with UPS and Fedex. USPS is actually doing the delivering!






The road to success is always under construction

 
 kozersky
 
posted on July 5, 2011 04:59:05 PM new
Tomorrow is FVFs Reduction Day. Are you ready?

Bill K-
 
 ggardenour
 
posted on July 7, 2011 08:37:22 PM new
Yeah I'm ready to take it in the shorts again. I just figured out that my TSR discount only applies to to the sale price FVF NOT the new shipping FVF. Thanks for the lower fees eBay....talk about misleading.

http://pages.ebay.com/sellerinformation/news/Feecalculator.html#

My fees are going up 25%....



 
 merrie
 
posted on July 8, 2011 05:43:59 AM new
Did you really think any fee changes were going to benefit anyone but EBay?.

 
 ggardenour
 
posted on July 9, 2011 10:10:32 PM new
Of course I knew eBay was going to benefit It's the spin they put on the new fee increase that is insulting. Only solution raise prices so I can make the same (I hope)and GreedBay can make more.

 
 
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