posted on July 17, 2011 08:06:48 PM newTraders claim eBay fees are killing business
Small firms which rely on the auction site for most of their sales say that its new higher commissions are squeezing profits
By Emily Dugan - Sunday, 17 July 2011
Small firms that sell their goods on eBay are being squeezed out of business by a massive rise in fees to use the online auction site.
Many traders have seen their costs double, with eBay siphoning off up to 12 per cent of the final sale price. The recently introduced price rises have affected particularly those small firms that rely on the site for most – if not all – of their trade.
posted on July 18, 2011 05:15:38 AM new
If a brick and mortar store is relying on its Ebay sales solely to stay afloat,it is just a matter of time it will close shop,the shopkeeper will stay home and sell on internet only.
Compared to the fixed expenses of a brick and mortar store,Ebay fee is cheap-
no lease to sign,no merchant account fee to accept credit card,no phone bill,no electric bill,no shop lifting and no temporary help-he can go to sleep and wake up in the morning with orders placed while he sleeps !
I dont know what kind of design watches he is selling,if they are new and made in China with a designer logo like Anne Klein slapped on it,there are plenty on Ebay .
But a guy who has a used watch repair /buy and sell shop in Brooklyn is doing well,his repair man does the repair and he takes pictures and gives good description on antique and vintage name brand watches.
His neighborhood customers are doing well too,selling their used watches to him .
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There is no 'Global savings glut',only wild horses and loose bankers.
posted on July 18, 2011 10:17:59 AM new
We closed our brick and mortar store. The expense of rent, utilities, payroll, workers comp insurance, higher liability insurance, payroll taxes, and personal time spent at the store was killing our bottom line and peace of mind.
We now rent space at one location where we get about 75% of our previous sales, but reduced our overall costs. We only have to buy, clean and bring our products in. The business sells our stuff for us and the overall expense is well below what we paid before.
We have also increased our sales on eBay since closing 3 months ago. I am selling higher end products and our sales have increased 4 times.
I agree that the bottom line on eBay keeps increasing, but I really have no complaints if there are plenty of buyers willing to pay our prices online vs. in our store.
I have had plenty of products in our store for months at $100. Put them on eBay and sell them for $150-300 within a week. It is a huge marketplace and there are plenty of buyers/collectors out there. There are different risks associated with selling on eBay, but if you know that you are much further ahead of the game.
posted on July 19, 2011 05:00:15 AM new
Many of comments on this and other forums claim eBay is committing financial suicide with their policies and will be down the drain soon; but apparently others think they are such a behemoth that a fee increase "kills economic recovery".
So which is it?
The hyperbole of this headline was too amusing to let pass, and the business anecdotes in the linked story are the usual self-serving complaints. Why weren't the cases such as sellers moving from B&M to online killing the recovery, since that affects the amount of vacant retail space?
posted on July 19, 2011 07:20:54 AM new
These articles do not show up on WSJ,Economist,London Times or Harold.
Why do they call Ebay sellers 'trader'?
Massive fee increase -12%?
AMZN charges 15%,other auction sites charges 15-25% and there is also a buyer premium.
Some auction sites require the seller to ship the items to them at their own cost and pay return shipping if items do not sell.
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There is no 'Global savings glut',only wild horses and loose bankers.
posted on July 19, 2011 08:36:10 AM new
I have went back to selling more at local flea markets and car shows. eBay was 90% of my income but is down to about 20% of my income.
posted on July 19, 2011 09:21:39 AM new
I moved my shop from Yahoo shopping to Ebay,Ebay is amazing,so many buyers and sellers.
I picked up Brown University as a customer,I am now on university file as one of their approved vendors!
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There is no 'Global savings glut',only wild horses and loose bankers.
posted on July 19, 2011 09:26:24 AM new
Toolhound,
All roads lead to Damascus!
Are you selling to Ebay sellers in local flea market?
Even the vendors at the trade shows buy and sell on Ebay.
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There is no 'Global savings glut',only wild horses and loose bankers.
posted on July 20, 2011 01:53:42 AM new
Not many people left buying to sell on eBay at the flea markets. At my best flea market only one other person and myself that still sell on eBay all the rest have quit. Use to be we would have people running crazy in the morning buying for eBay now it is back to a few brick and mortar store owners. The brick and mortar store owners are much smarter buyers than the old eBayers were so now we have to sell more to the public.
posted on July 22, 2011 05:09:25 AM new
A good sales person alone would cost me at least 25% in commissions and I have yet to meet a sales person with the global reach and customer base that eBay offers. Am I happy with the fee increase..no, but on the upside it thins out the competition. I have adjusted my pricing and sales are good and have been increasing along with my profits.
How much would it cost to run a brick & mortar 24/7? On that note eBay is a deal.
