eBay Shopping Cart 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]

There Are 35 Comments

  1. They need to make up for Skype some how! :P

  2. One thing to consider though, I have listed several items that never sold. I quit listing because the list price was to high if I then didn’t sell the item. If I sold the item a bigger percent I wouldn’t mind giving up. Most people like me don’t care, it’s more about getting a little something back on something you would otherwise toss in the trash. Just another side to consider. For me.. it’s going to help. But then I don’t try to make huge money on ebay. Like SOME folks do. I just use it as a spring cleaning dump or sell off old games so I have a few bucks to buy a new one.. and the like. Just something to consider. Point of view is always key.

    • Now ebay is making money from sellers shipping cost! LOL As if the final value fees weren’t high enough. Once an item is sold, you the seller has final value fee correct? NOW YOUR SHIPPING COST IS PART OF THE FINAL VALUE FEE! To make things worse, for top rated sellers who receive a discount the shipping cost isn’t equated in your FVF. What a GOUGE ebay is! Online sellers could fight this by simply selling elsewhere. eBay may have the market now but that is because sellers allow ebay to continually come up with ways of increasing your fees. Don’t sell for 1 week and see how bad it hurts ebay.

  3. scratch my last commit I didn’t fully understand the fees.. sorry. I thought I had it, but I missed that the fees where going up for some/most listings as well.. so mostly this is just a fee increase it seems. My mistake.

    • AUUUGGGHH! ebay is raising the auction style FVF from 8.75%/3.5%/1.5% to a FLAT 9% across the board!! So they are going to give us a $.25 reduction on the front end so they can GOUGE MANY dollars off of the sellers’ potential profits.
      Times are tough, buyers are not throwing their money around as it is and now ebay raises fees on their life blood – us the Sellers!! I doubt that Ex-eBay CEO Meg Whitman would have imposed something so hostile during such hard times – Thy are essentially putting a TAX increase on all of us as sellers in a RECESSION !! – a move that gets politicians Fired!!

      The Plain Math: I sell something for $300 that started at $49.99 Auction Style
      Under Current Pricing Scheme: Insert Fee $1.00, FVF = 8.75% of the initial $25.00 ($2.19), plus 3.50% of the remaining closing value balance of $275*.035 = $9.63, so my total cost for selling this item on eBay is $1 + $2.19 + $9.63 = $12.82

      Under the NEW March 30th Pricing Scheme: Same $300 item started at $49.99 Auction Style, Insert Fee $.75, FVF = 9% of Total Sale Price – a flat 9% of $300!!!, so now my total cost for selling on eBay is $.75 + $27.00 = $27.75 NOT $12.82

      EBAY JUST INCREASED FEES TO SELLERS BY 216% FOR THE SAME ITEM($27.72/$12.82)!!!!! HOW THE HECK ARE WE SELLERS SUPPOSE TO ABSORB THIS INCREASE IN A DOWN ECONOMY?!?!

      WHO GOT GREEDY IN A RECESSION!?!? WHY ARE YOU DOING THIS TO US!?!?

      Somebody who has pull at eBay please raise the alert flag before this is Implemented!! PLEASE DO THE MATH TO UNDERSTAND JUST HOW BAD THIS IS FOR ALL EBAY SELLERS!!

  4. Not only that, but they introduced a new feeback policy so buyers can only recieve POSITIVE feedback, no matter what! That means even if a buyer screws a seller over, the seller has no way to leave truthful feedback!

  5. If you do the math, it actually works out to an increase in total fees for any item sold. Cost’s are not down for the average seller, but up. This is not a ‘good news’ article that E-Bay is telling us. + add the paypal fees and it is getting expensive to list anything on E-Bay.

  6. Well I like the buyer can only receive positive feedback, I’m sick and tired of receiving negative feedback as the buyer just because I left negative feedback to the seller because item was badly shipped or was DOA, or horrible communication, honestly the whole feedback system is just a joke, each party waits for the other party to leave feedback first to determine if they get negative just because.

    Also they’ve now screwed up the reserve price fees, you no longer get the reserve fee back if your item sells, they take it no matter what… really a pain, guess they are forcing us to list as Buy It Now with Offers and just list higher then we would want.

  7. Anonymous wrote:
    Not only that, but they introduced a new feeback policy so buyers can only recieve POSITIVE feedback, no matter what! That means even if a buyer screws a seller over, the seller has no way to leave truthful feedback!

    Huh, I missed that part of the email. I guess having 100% positive feedback no longer matters, because everyone will have that.

    Anonymous wrote:
    If you do the math, it actually works out to an increase in total fees for any item sold. Cost’s are not down for the average seller, but up. This is not a ‘good news’ article that E-Bay is telling us. + add the paypal fees and it is getting expensive to list anything on E-Bay.

    That’s exactly what I was trying to convey in our article. Ebay tried to make it sound like they were lowering fees all around, but the only people who will benefit will be those who have a lot of items that never sell.

    Andrew wrote:
    Also they’ve now screwed up the reserve price fees, you no longer get the reserve fee back if your item sells, they take it no matter what… really a pain, guess they are forcing us to list as Buy It Now with Offers and just list higher then we would want.

    I was never a big fan of the reserve prices anyway. I think if people listing the items want a minimum amount of money they should just set that as the starting bid.

  8. I sent this to ebay

    How do you think this will help anyone. You lower the insertion fee a few cents and hike up the final value sell percentage which will make you more money from us. Don’t ever send messages like this to me saying your doing something good and really your just slapping me in the face.

    • > Don’t ever send messages like this to me saying your doing something good
      > and really your just slapping me in the face.

      Could we sue those suckers?
      Could we treat this kind of things like false advertisement and make good class action case for the feebay dumbness?

  9. :twisted:
    I know I am sending this a little late, but I feel the same way about ebay & have also sent them an email about the fees. I also mentioned to ebay how I thought it was very tricky of them to promote everyone to offer FREE shipping. They don’t take a final value fee from this charge, how clever of ebay….but I caught on. I have found a new selling/buying site that I am giving a try. it is ebid.net
    It’s just getting the word around that is making it so hard. I did sell one item as a BIN & only had it listed for 2 days.
    I AM SICK of ebay!! They SUCK in my book!!
    Amy

  10. The numbers in the OP are wrong since the 8% rate only applies to items under $25. Of course, all the brackets did go up, so the basic idea of the OP is correct.

  11. watch paypal do the same crap

  12. Just got off the phone with eBay over the change I’ve seen in final value for $44 BIN items. Per the eBay rep on the phone I use to be charged 2.51% FV fee, now its 8.75% due to the new fee structure. But, I’m saving 15cents by not paying a listing fee, even if I’m paying $1 more on the final value. So really, I’m only paying an extra 85 cents. Basically a 2% increase is what I paying.

  13. You seem to forget that ebay isn’t the “garage sale” website it used to be. Not everyone is just selling stuff they otherwise assumed had no value. Alot of people make their business on ebay and alot of businesses sell excess goods online; either way they have margin they have to maintain. By taking 8% of that you are putting a lot of people in the red, its just not worth it sometimes to use ebay. After taxes you pay on that income, its hard to believe you can make much of anything.

    Its ironic now that ebay is officially complaining about craigslist taking their business. Well duh, everytime you make a dick move like this craigslist is going to benefit. Ebay is completely out of touch with the community that made them rich. I just sold a $320 item on ebay the other day; I paid $20 to ship it, $25 for FV fee, and $9 to paypal for just transferring the money. It just isn’t right. Ebay is a great illustration of corporate greed

  14. This is so crazy, I couldn’t believe my invoice when i saw it. I just sold 1000 dollars worth of items and all had free shipping, Paypal took out about 50, Ebay took about 120, the shipping i payed was about 40. damn, this is a shame, I got robbed 20% of my profit! Is amazon or another site more affordable to sell items with. I don’t think eBay is worth the money anymore

  15. AUUUGGGHH! ebay is raising the auction style FVF from 8.75%/3.5%/1.5% to a FLAT 9% across the board!! So they are going to give us a $.25 reduction on the front end so they can GOUGE MANY dollars off of the sellers’ potential profits.
    Times are tough, buyers are not throwing their money around as it is and now ebay raises fees on their life blood – us the Sellers!! I doubt that Ex-eBay CEO Meg Whitman would have imposed something so hostile during such hard times – Thy are essentially putting a TAX increase on all of us as sellers in a RECESSION !! – a move that gets politicians Fired!!

    The Plain Math: I sell something for $300 that started at $49.99 Auction Style
    Under Current Pricing Scheme: Insert Fee $1.00, FVF = 8.75% of the initial $25.00 ($2.19), plus 3.50% of the remaining closing value balance of $275*.035 = $9.63, so my total cost for selling this item on eBay is $1 + $2.19 + $9.63 = $12.82

    Under the NEW March 30th Pricing Scheme: Same $300 item started at $49.99 Auction Style, Insert Fee $.75, FVF = 9% of Total Sale Price – a flat 9% of $300!!!, so now my total cost for selling on eBay is $.75 + $27.00 = $27.75 NOT $12.82

    EBAY JUST INCREASED FEES TO SELLERS BY 216% FOR THE SAME ITEM($27.72/$12.82)!!!!! HOW THE HECK ARE WE SELLERS SUPPOSE TO ABSORB THIS INCREASE IN A DOWN ECONOMY?!?!

    WHO GOT GREEDY IN A RECESSION!?!? WHY ARE YOU DOING THIS TO US!?!?

    Somebody who has pull at eBay please raise the alert flag before this is Implemented!! PLEASE DO THE MATH TO UNDERSTAND JUST HOW BAD THIS IS FOR ALL EBAY SELLERS!!

  16. This blows! I have always had an ebay store on the side. Been paying $14.95 per month. Now they have hit store sellers coming and going, charging higher insertion fees and higher final value fees! I have been buying/selling on ebay for 4 years. So, if they want me gone as a seller than I take all my money too and no longer buy on ebay EVER AGAIN! ..fools and their money! greed!!!

  17. I’m in the UK and just got my ebay invoice. I haven’t sold anything for a few years so imagine my horror at seeing that it’s 10% now! Are you only paying 9% in the ‘states – count yourselves lucky!

    I’ve emailed to complain but I’m not going to hold my breath for a refund.

    From now on I’ll be using somewhere else to sell….

  18. Yep, I just sold 3 items and got an invoice from them for $50! 10% final value fee. I think i am done with them. that is awful.

  19. I sold an item with $580 + $40 shipping (International shipping). The total cost is $74ish. I am done with ebay! For items that I can sell on amazon.com, I am doing that. They are charge <9%, wtihout listing fee.

  20. I am finding it real hard to make a profit on Ebay any more. The items that I used to sell for $300 and make around $50 profit on in the past are now only making about $30 profit. I do this about 10 times and month and I’m out an extra $200. Not sure if it’s worth the time and energy anymore unless you get real cheap items to sell that you don’t care what they sell for.

  21. Ebay is a last resort. Use Craigslist and sell local, or find another auction site.

  22. OH MY GOD! I just realized that Ebay has quietly been taking hundreds of dollars from my family since they JACKED the Final Value Fees! It was already outrageous greed when they took over 4% in FVF plus 4% for PayPal plus listing fees! Now with 9% FVF + 4% Paypal + listing fees, the EXTREME and shortsighted Ebay greed that has always hampered their company has knocked me out of the market! I WAS lucky to average ~5% net – after paying for packaging supplies, subsidizing shipping, and pouring hours and days of work and lots of money into restoring items to sell. Now with the Ebay fees totaling ~15% they have sucked up all my oxygen and KILLED ME!
    A CLASS ACTION LAWSUIT for quietly making the HUGE increase in Final Value Fees is in order!!!
    Greed kills. Ebay has had HORRID management since Day 1, and I cannot consider Selling on Ebay in the future – even after the backlash from this EVIL deed forces them to drop their fees. Their future expressions of sorrow for what they’ve done and assurances of future better behavior will NOT get me back.
    NEVER AGAIN!

  23. i just sold a car here in the uk for £770.

    when i listed it i was told the fees were £8.

    just got my invocie for £30! got the invoice the day before they were going to take the money!

    when you list it there is only a small line that links to fvf – these should be in big bold letters/numbers before you agree to list it, not hidden away in a back end link.

    totally disgusting. they can sue me for the £30 now.

  24. EBAY IS A BIG SHARK …

    USE CRAIGLIST BUY SEEL OLD SCHOOL SYSTEM …FACE TO FACE ..ACCEPT CASH ONLY ……VERY SIMPLE

  25. I just sold an item on eBay. I’ve sold several items before, but not for quite a while. I recall the fees being reasonable, and didn’t even try to research what they were this time. I sold an item for $575. eBay fees were over $50.. and on top of that, PayPal (owned by eBay) fees were over $25. Over 13% gone to fees.

    That’s the LAST time I sell ANYTHING on eBay!

  26. Yup, eBay blows. I just sold my phone for less than $300 and the fees added up like crazy. This was just a one-off sale for me. I was shocked at the fees and I can’t imagine how anyone could make a living selling on eBay.

    Also, eBay is very quiet about the fees when you list something (other than the cheap listing fees, which don’t matter). If they cared about their sellers, they would make it much clearer when you listed the item how much what the eventual fees would be. The fact that they hit you with a big surprise bill at the end says a lot about their character.

  27. I use to sell on ebay as a full time job. I have rejoined the corporate job market,and hadnt sold anything significant in quite some time. I recently sold a blackberry on ebay, and could not believe the amount of fees ebay is now charging. I sold the phone for 325, and they are taking 32 in fees. That is crazy, I dont understand how anyone can afford to sell on ebay any longer. I will be rethinking any future plans of selling anything on ebay again.

  28. This is more like a government tax. Furthermore, I wasn’t even warned about this huge increase. I will never sell on Ebay again.

  29. I just did the math and it will COST me .05 to sell a .99 item to someone using US Priority mail. Great Deal???????

  30. The situation now is that Ebay now takes a cut of the sellers shipping fees. Some argue this is acceptable. Some may think it is unacceptable. These people may want Ebay to, eventually, reimburse them.

    EBay’s lawyers decided it is legally OK for Ebay to charge sellers these fees. Some do not assume EBay’s lawyers are correct. Sellers will begin to think that they want lawyers to represent their legal rights. As sellers realize their actual losses, a class action lawsuit may be imminent.

  31. I’ve been selling on ebay for over 14 years and I am totally disgusted with what they have become. Robbing the sellers with their outrageous fees, now charging fees on shipping, Only allowing the buyers to leave bad feedback. I just researched the new fees and found them taking 11% on clothing and 13% on books and on and on. I’m done. I am now 64 years old and on a fixed income so ebay was supposed to be a way of actually being able to make it being older and struggling to survive. It is a sad way for all the older generation to end up living anyway and now all these higher fees from ebay has taken even that away. Not sure how I will make it now. It is horrible. If they weren’t so greedy I would stay but their fees have become way over the top.

  32. My first sell on E-bay. I sold two items for a total of around £670. The pay-pal and e-bay fee’s together added up to £91.64!

    I thought i did ok at first but i have just received the dreaded invoice with the final fees in.
    I sold the items on one of E-bay’s, “free insertion” offers. Having now experienced the “final fee” percentage, i couldn’t give a toss about the “free insertion” which is clearly a cheap trick to sucker people in.

    No where did e-bay tell me clearly they would charge such a crippling percentage. I know now that I should have read into and checked the fees first. However there should be an onus on E-bay to clearly tell you, especially for first time sellers how they are going to rip you off.

    I just spoke to customer services and they kept ranting on about how E-bay and pay-pal are separate business entities and that i couldn’t work on the overall percentage. What absolute rubbish, it’s the same parent company, how stupid do they think we are.

    I can see these high fees putting a-lot of people off their services, especially when hit out of the blue.

    I don’t actually have the £68 final fees in my account at present as they hit me 2 weeks after the deal had been done. I will have to find the funds elsewhere. They could at the very least, told me what the final fee’s were at the end of the auction.

    If you are going to use E-bay, i guess you have to charge rip off prices to limit the damage of E-bays rip of fees. But then it’s forcing the seller to rip of the buyer which in turn doesn’t seem fair either. Ok steam vented, over to Craigslist for me.

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