eBay announces Price Changes

eBay Incorporated plans to lower fees for listing items, raise minimum selling standards, and offer its best sellers incentives and discounts. To improve the buying experience, the company announced it is making changes in three major areas that influence seller behaviour: fee structure, seller incentives and standards, and feedback. The fee changes, which vary by country, are intended to encourage sellers to list more items and use more pictures in listings. The online auction leader is also setting the bar higher for sellers who aspire to its PowerSeller program: qualified PowerSellers will receive valuable fee discounts and better payment protection from PayPal.

Starting February 20 in the U.S., eBay is reducing its fees to list items (called "Insertion" fees) by 25-50%. eBay is balancing that change by increasing the fees it charges when an item is sold (called "Final Value" fees). Sellers prefer this structure, as it lowers their risk if an item doesn't sell. The company is also eliminating fees in the U.S. for its Gallery option, which should spur sellers to include more photos of the item for sale.

The company is also making its minimum standards more stringent for anyone who sells on the site and will begin requiring a safe payment option, such as PayPal or a major credit card, for sellers who have lower rates of customer satisfaction or who sell in categories that have a high number of buyer complaints.

eBay will begin decreasing search exposure for the listings of sellers who have high rates of customer dissatisfaction, while increasing search exposure for the listings of sellers with the best buyer satisfaction ratings. As well, the company plans to update its feedback system to reinforce healthy, vibrant trading and keep bringing buyers back to eBay.

"Consumers have more choices than ever, and they expect more when they shop online today. We're serious about making eBay easier and safer to shop. It is our intention to reward great sellers. Sellers that describe items accurately, ship on time, and ship at a fair price will enjoy preferential pricing and discounts on eBay. We think this will significantly improve the buyer experience overall," said John Donahoe, the President and CEO-elect of eBay.

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20 Comments

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lawl. you people are laughable. why **** and moan when a company wants to make a little more money? you are all in the joyuss presence of the FREE market. if you don't like this company's service, simply don't use it. don't pout about it. if i saw the chance to make more money off my service by reasonably raising my rates every so often i would. oh wait a minute, i do. to keep a growing buisiness growing i DO raise my rates. the difference is my clients see the benefit of my service and dont mind paying it. if you dont see the benefit simply stop. or start your own ebay, and be the money hungry buisiness owner yourself.

It's not the fact that they're making more money - it's the fact that they make out that they're changing it for the better of their users but really it's just better for themselves.

"Sellers prefer this structure" - I disagree - I'd rather pay a higher listing fee and a lower final value fee as OVERALL my costs will be lower. If my item doesn't sell I've only lost around 30p - £1 so I don't mind listing the item again - eBay let you relist these items for free anyway.

I don't think i would buy crap off e bay i was browsing ps3 listings and some of the standard stock consoles either used or refurbish were selling higher than an new in store price ROFLMA. Some people just get scammed. Or like spend 15 dollars for a ps3 raffle ya right ill save my $$$

Neither Half.com or Amazon Marketplace have insertion fees. Half.com's final value fee is quite a bit lower than Amazon's.

I wouldn't buy something off of ebay for anything. I use ebay as a "google" sometimes, looking for a "buy it now"
feature, then bypass ebay, go directly to the website and see if I can cut the same deal.

Like pizza delivery charging a 1.50 delivery charge and expecting me to still give the delivery boy some incentive!!

*laugh* at my own statement :cool:

anyway.. more money... all people want..

They already took a high percentage of your sales, now they are taking even more. I wish all sellers would just boycott them for a week and send them a message; without sellers they do not have a company.

They need to do away with sellers who sell counterfeit goods out of China, and make it easier to report sellers who do.

(OPaul said @ #6)
They need to do away with sellers who sell counterfeit goods out of China, and make it easier to report sellers who do.

I agree with your first point, they have a serious problem with counterfeiters. Secondly it is easier than ever to report a listing, at the bottom of every listing there is "Back to list of items | Report this item | Printer Version | Sell one like this"

But do the idiots even read the listings, getting removed for 'advertised elsewhere', what bloody rule does that break

There is no doubt that the cuts will be recouped and it will probably end up costing the seller more than before the reduction in listing fee charges due to the planned extortionate final value fee.

oh my god....
my item got removed because it had 'advertised elsewhere', which was a lie but apparently its not allowed... well if I want to advertise MY product elsewhere, I shall ****ing well do so without eLames approval

Typical eBay - they lower the insertion fee which is less than £1 for most items anyway (£3.00 max), then they increase the more expensive final value fee so they'll make even more money!

Exactly, and they try to play it off like they are being nice in their emails to you. But what can you do, there is so much on ebay that is not easily accessible anywhere else.


"Sellers prefer this structure, as it lowers their risk if an item doesn't sell."

Such a huge risk of what, 50c for the average auction? The only people that care are the ones who list TONS of the same crappy items.