eBay has angered a lot of sellers over the years because they are frequently jacking up the cost of their fees to list the items. They are trying to make amends with all of the sellers by lowering fees across the board, which will become effective on February 20th, 2008. Well, maybe not all the way across the board.
Some of the listing fees have dropped by as much as 50%, and they’ve completely removed the fee for adding a gallery image (the thumbnail that’s displayed when performing a search). The biggest price reductions come to those who start their auctions under $25, and even more to those who start under $0.99.
There’s one bit of information that they failed to leave out of their mass email that was sent out to all members (I received it earlier this morning). As you would expect eBay isn’t just going to reduce the prices without making up for it somewhere else. Right now with every item that you sell eBay will take 5.25% of that revenue, and on February 20th they will start taking taking 8.75%! That’s an increase of 67%.
To help put the increased Final Value Fee into perspective lets look at an example. If you sell an item for $500 on eBay they would have previously gotten $26.25 plus the listing fees. Now they are going to get $43.75 from the final selling price plus the slightly reduced listing fees. That’s a difference of almost $17, which is doubtful that you’ll make up from the reduced listing fees.
Remember, if it sounds too good to be true it probably is. eBay wants to make you think that they are putting more money in your pocket, but the only people who are really benefiting from the changes are those who have items that don’t sell.
[via The Associate Press]