eBay Fee Changes

Hi folks, EzD here.

Scott asked to to talk about the eBay fee changes. Some are calling this a fee increase. Ebay says it’s a fee decrease. The way I see it, it’s all a matter of your particular situation.

Here’s an image of an excel spreadsheet I put together showing a representative sampling of the products I sell:

Before Fee Changes

Here’s the same items after applying the fee changes:

After fee changes

So, my profit will go down a total of $1.40 cents. That’s less then 1%. But the important thing to look at is my item cost vs the final price: I average 350% profit margin! Personally, I don’t worry about fee increases because my profit margins are high enough to absorb any incremental increases.

But, now let’s look at something else. Ebay is also implementing a 15% Final Value Fee discount for Power Sellers who maintain a high Detailed Seller Rating. Here’s the effect applying this POSSIBLE discount has on my profit:

After fee changes with 15% FVF discount

That’s a $4.70 increase in profits over the old fees IF I can maintain a high enough Detailed Seller Rating (which is yet to be seen).

Now, I’ve never been one to push the power seller program. Up until this point there was very little benefit for being a power seller. But, now there may be some incentive to be a power seller in order to qualify for the discount.

But, regardless I think the solution to the fee change is simple: Sell stuff that gives you a good great profit margin. Take care of your customers.

And always remember: You make your money when you buy an item, not when you sell it.

EzD signing off.

P.S. My math skill aren’t the greatest. If you find any mistakes in my numbers please let me know.




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57 Responses to 'eBay Fee Changes'

  1. Joan Duden - February 11th, 2008 at 7:03 pm

    THANK YOU for all you do for all of us! I enjoy reading e-mails from you, Skip McGrath and James Jones. You guys are great and make ebay selling for me that much more fun!

    All the best and thanks again from an avid fan,
    Joan Duden

  2. Patti - February 11th, 2008 at 7:07 pm

    Scott
    You always give valid, “meat and potatoes” stuff we can use. Thanks!

    Patti

  3. Jeri - February 11th, 2008 at 7:10 pm

    Thanks so much for your feedback.

    But from a small seller, this Final Value fee increase takes a larger chunk.

    Also, would you care to comment on the No Negative Feedback for buyers? Do you feel this is a postive move?

    Best to you,
    Jeri

  4. david - February 11th, 2008 at 7:10 pm

    PUt up some more overlooked treasures. Ive made about 400.00 from that so far

  5. LizaS - February 11th, 2008 at 7:12 pm

    Thank you for doing this comparison! I think the free gallery will help the most, since I start many listings at $1. When something doesn’t sell right off, that gallery fee cuts the overall profit on my total sales. Paying a bit more for the item that sells won’t hurt as much as paying so much to list something that doesn’t. I’m not yet in a position to be a power seller on my part-time basis, but that does add an incentive.

  6. Noel - February 11th, 2008 at 7:14 pm

    It all looks good as long as you are a Power Seller with items selling at high prices and better than average ROI. But what about the little guy?
    He gets screwed.

  7. Mike - February 11th, 2008 at 7:16 pm

    To think, someone at ebay actually got paid to come up with this amazing new change. Either way nice description EzD
    Michael Kocis
    http://www.wildwoodcarvings.com

  8. Yvette - February 11th, 2008 at 7:18 pm

    Thank-you for providing all this information. I really enjoy reading the advice on this website.

  9. Bev Helton - February 11th, 2008 at 7:20 pm

    Thank you for your great advice on this Ebay fee change. I think you are right on about taking care of customers - that should always be the bottom line anytime one is selling to the public. Doing this will cause the customers to take good care of us, thus bringing up our DSR ratings and ultimately making it really worthwhile to be a Power Seller. Now all I need to do is figure out to raise my profit margin and I totally agree that where I make my money is when I purchase for resale. My problem is I really love the stuff I sell and tend to pay too much for it because of that, so of course, I don’t have a high profit margin. But I am learning and am especially glad to have all this help from EzD, Skip McGrath, Scott Foster and others who are doing really well at this and are kind enough to share the reasons for their success. Thank you again. Bev

  10. Jane - February 11th, 2008 at 7:40 pm

    I have no problem with the new fee structure as I am still paying less than what I pay in shops that I rent space from. $160.00 a month in rent - 10% Commission + another 10% if you ask for a discount. I sell to a lot of dealers so they expect more than the 10%. What I don’t like is Ebay’s new Feedback - it is opening a can-of-worms for the fraudulent buyer.

  11. gen - February 11th, 2008 at 7:47 pm

    thanks for analysis of the new fee schedule. I’m a powerseller who sells a lot of $1 items.

    in a message I got from ebay, it stated that the insertion fee for inventory items listed at .99 is now .05 and the new fee is N/A. does N/A mean it will not change or that there will be no fee? Since the fee for $1 listings is now .05 and the new fee will be .03, it makes me think that there will be no fee for listings less than $1. do you know?

    here’s the 15% blurb I got: PowerSeller Discounts
    Get up to 15% discount on Final Value Fees (or Transaction Service Fees) when you maintain high detailed seller ratings (DSRs) as a US or Canadian PowerSeller on your eBay.com, eBay Motors and eBay.ca sales. These discounts recognize and reward sellers who consistently provide excellent customer service on eBay. does that mean amount of sales or positive feedback? appreciate your opinion or any info you may have.

    I heard there was a boycott on ebay buying/selling this week. any info?

    thanks!

    From Scott: Sorry to tell you the bad news but N/A means eBay will no longer accept Buy It Now or Store Items listed for less then $1.00. I think that’s part of eBays strategy to get rid of “junk” products (present company excluded of course :)

  12. Richard - February 11th, 2008 at 7:51 pm

    I agree with you, You make your money when you buy the item not when you sell it. I buy a lot of items on Ebay with the misspelled program search, I relist it with the proper spelling and usually do pretty good. I went to a builders public sale and they had about 500 lbs of brand new zippers in the original boxes, I got them all for $6.00, what builder is looking for 500 lbs of zippers…keep the good information coming..Thanks for the emails

  13. Anonymous - February 11th, 2008 at 8:01 pm

    What your spreadsheets are totally ignoring is items that sell for less than $50, especially if it sells for under $25. It’s the sellers of small dollar items that are getting screwed the hardest.
    Exactly in line with new CEO Donahoe’s quote that he wants to get rid of the “flea market” atmosphere and cater to NEW items sold in Quantity. Screw the little guy - he only wants sellers like Circuit City or Best Buy on here. He is admitedly actually out to DRIVE OFF the smaller sellers eBay was founded on and he is getting his wish!

  14. William - February 11th, 2008 at 8:09 pm

    I’m like you. Most of the time I buy stuff for 5- 15 dollars and sell for over the $100.00 mark. Last item I sold I paid $100.00 for it and it sold for $775.00. So bring it on eBay!!

  15. Roxann - February 11th, 2008 at 8:28 pm

    Have been reading alot of these types of comparisons. Agree it hurts the little guy the most, as always. It is just a matter of playing with numbers. Looks good on the front end (decrease, good publicity), but they get you in the end (increase +). Wouldn’t quite so bad if they equaled out,but they don’t. Powersellers will benefit if they keep their fb up. My biggest complaint is that sellers can only give +. That’s all I have ever had to give and glad of it, but have read horror stories on community answer center. Once a buyer realizes the true impact of this they can request the most unreasonable things and your only recourse it to abide or get a neg. Good Luck to everyone. Well that’s my 2 cents.

  16. Cheryl - February 11th, 2008 at 8:49 pm

    I’d like to see the above analysis with a sell through rate of 25% and again with a sell through rate of 75%. Seems to me that makes all the difference in how this fee change will affect a seller’s bottom line. My sell through rate is fairly low, so I expect my fees to drop a little. But, for sellers with high sell through rates…..I think they will see a substantial overall fee increase.

    Thanks for giving us a forum!

  17. Susie - February 11th, 2008 at 8:53 pm

    Thank you for some sensible perspective and clear thinking amid so much jabber about this. Phew! Now, what do you think of the new restrictions on feedback?

  18. John R. Cumbow - February 11th, 2008 at 9:10 pm

    Hi EzD,
    Thanks for sharing your numbers. I used an eBay fee calculator over at AuctionBytes, and was very surprised to see that my fees might actually be slightly lower under the new rates.

    The main reason is that my sell through is currently only around 25%, so the savings on the front end more than covered the extra costs on the back end.

    I also use ‘gallery’ in every one of my listings, so getting it for free will save me a lot in listing fees.

    I really think the feedback changes are wrong. If we can ONLY leave positive feedback for a buyer, why bother? It won’t have any meaning, since they’ll ALL now have 100% positive.

    Keep up the good work!

    John R. Cumbow
    http://www.MisspelledBargains.com
    Find the misspelled eBay auction
    bargains that other bidders miss!

  19. Tommy - February 11th, 2008 at 9:24 pm

    I am not thrilled about the feedback changes. However, I think the fee thing will “come out in the wash”. I like paying less upfront. It really helps. Gives me more motivation to make Power Seller status. CHARGE!!!!

    Thanks,
    Tommy
    Hound Dog Trading Company

    “Life turns out best for those who make the best out of how life turns out!”

  20. Mark - February 11th, 2008 at 9:52 pm

    Thanks for the vital info here, but as most have said it will only hurt the little guy, I have to say that it will probably only hurt a little. The main concern is the FB changes. I was talking to a buddy of mine and we came to the conclusion that maybe ebay put that out there to see what kind of fuss would come up and maybe after we complain enough about it, they will see the light and change it back to where it belongs or come up with another idea that is more equal based, for the lack of any good words at this late hour. I would like to see ebay make this easier rather than harder for all of us who made them what they are. Thanks for all you do. M

  21. Cathryn Maldonado - February 11th, 2008 at 9:55 pm

    When I first received the email from Ebay about the changes< I was very pleased. Lower insertion fees, plus free gallery sounded really good to me. Not to mention the incentive for Power Sellers with great feedback. I became confused, however, when I saw all the negative comments flying around the internet.

    I am so happy that you have taken a realistic look at the situation and provided an honest analysis.

    I believe that the fee structure change will have a positive effect on my business and I hope it will on yours, too.

    Thanks for a great article.

  22. Ruthie - February 11th, 2008 at 10:05 pm

    Couldn’t agree with you more about the feedback thing. No point in doing anything with fedback now because it has no real meaning.

    As for the buyer having you over a barrel–it’s going to get real bad eventually because of a few nasty people ruining it for everyone else. All you will be able to do is say “Yes, sir” and “No, sir” and get kicked in the rear. Sorry, we’ve had a few bad experiences in the past with a few crackpots and can only see it getting worse down the road.

    We’re thinking about trying the waters elsewhere where the little guy is still appreciated!

    Thanks,
    Ruthie

  23. Margaret - February 11th, 2008 at 10:08 pm

    I would like to see how the fees will effect the store inventory. As for feedback: once the item is paid for and shipped leave positive feedback. Plain and simple to me.

    Thanks,
    Margaret

  24. Jackie - February 11th, 2008 at 10:30 pm

    I have mixed feelings on the new feedback policy. First of all, there is a lot of retaliatory feedback by sellers. If a buyer is not happy, and if they voice that they are not happy, they will get retaliatory feedback. I know, I have been there. On the other hand, if we have a bad buyer, always consistently leaves a seller bad feedback no matter what they do, or who consistently is unhappy….etc…and cannot be pleased, it will be impossible for us to tell. I believe this new feedback system will make it impossible for new sellers or buyers to enter the e-bay marketplace. For instance, what will happen is that sellers will simply not leave feedback for bad buyers. So, no one will sell to anyone with no or very little feedback. It will be difficult for new buyers on e-bay to get certain sellers to sell them products, and it will decrease our buyer pool.

    I think if e-bay had started out with a feedback system like amazon, this might have worked. But, they did not. And, on amazon, there is no auction. It is a straight out purchase, pay, and ship. This seems to me a totally different animal.

    I think getting rid of the flea market mentality is great. But do not try to mimic amazon. Amazon has the penny book sellers who are driving just about everyone else out of the market, and really hurting the book market. I think they are even driving amazon itself out of the market. And Amazon is bound to do something about it eventually. Let amazon be amazon and e-bay be e-bay. They are not the same, and that is good.

    I still see e-bay as a great opportunity, and plan on working hard to become a power seller, and trying to keep my customer feedback ratings up in the meantime. And, I think we all just need to evaluate what we are selling. If e-bay is not the right market place for it, then sell that stuff on another venue, and start selling what will make you money using e-bays system on e-bay.

    Jackie

  25. david - February 11th, 2008 at 11:11 pm

    Who wants to work with a company that won’t allow sellers to give negative feedback about buyers? I know you guys make your money off eBay and there aren’t many alternatives, but it is the principle of the whole thing. eBay has many bad repeat buyers and to not be able to warn other sellers about them is ridiculous. eBay has largely turned into a large retail buyer showplace instead of its original unique place for individuals to sell unwanted items. There is condoned counterfeit item selling, copyrigth violations, banned unsafe items showing up there, and you really don’t save much anymore. You can have eBay…good luck!

  26. Tara - February 11th, 2008 at 11:39 pm

    EzD-Thank you for the spreadsheets. It’s helpful to see it all layed out that way.
    You guys are the best! :)

    Tara

  27. Jacque - February 12th, 2008 at 12:31 am

    I am a “small seller”. I think the new feedback rating is ridiculous. Feedback gives everyone a chance to see in real time who you are getting money from and/or giving it to. You to know who you are dealing with, if not, all you are doing is tip-toeing through a mine field. The equality of the rating system is only going to be one sided. That makes me feel like giving it up. Plus all they have to do is dispute it in paypal and the buyer always, always, always gets their money back. So now, they get the product, ruin your business, and get their money back too. Whew! Now that I have that off my chest, I am excited about no gallery fees! However, I bet in 6 months there will be very few of the “small sellers” left. I guess I should have a garage sale, the permit is only $3!!!!

  28. Carol Lempges - February 12th, 2008 at 12:32 am

    I have an overlooked group of items. The Fisher Price Loving Family people and pieces (like furniture) are sold around here in bags at yard sales. I purchased a set with the house and it didn’t sell. I couldn’t get it apart to keep it from being an oversized box so the shipping was outragious. So I put the furniture on by itself. Sold for $51 I had paid $8 for the set!

  29. Susan - February 12th, 2008 at 2:41 am

    To make it with the new policies in force means I will have to become a PowerSeller. I will have to peddle new “stuff”. I am an out-of-print, scarce book seller for underfunded libraries. I sell beautiful books donated to libraries from private individuals. I return 70% of every sale to them. Looks like that will have to end. I am in a quandry. Janelle Elms, eBay University Education specialist said, be a powerseller or sell somewhere else. Otherwise you will be eaten alive by fees.

    My take on what CEO Donahoe means is “Thanks little seller for getting us to this point. You’re not needed anymore. The life cycle of eBay has matured from an entreprenurial growth company and is moving to a more impersonal corporate profile.

  30. Paul - February 12th, 2008 at 4:05 am

    Has anyone looked at the alternatives to eBay and compared the fees?

    There is a German based site called Dubli that does not charge for listings
    only on selling but it’s not as convenient to use as eBay as it does not
    have an integrated pay system like PayPal.

    http://my.dubli.com/4008

    The above is my affiliate link if anyones interested in trying it.

  31. Nancy - February 12th, 2008 at 4:37 am

    Thanks for the spreadsheet. I am a very small seller so I am not sure how this will effect me,but I appreciate your info.I really wanted to get my business going big in 2008,but looks like I might not. I like the reduced listing fees. I love your newsletters and the info from Scott is great. Maybe I will make it big one of these days.I am retired and just work it on a part time basis.Thanks again!!!

  32. Karen - February 12th, 2008 at 8:11 am

    Perhaps it is time for a new small seller auction company. I know in the past others have come & gone, but they may have just been ahead of the market. If Ebay will no longer serve those that were a “foundation” of the company, someone else can.

  33. Laurette - February 12th, 2008 at 9:22 am

    Thanks for the fee breakdown. It’s hard to say for me yet how this will affect my small amount of sales on ebay or if I list infrequently. I guess I’ll have to upgrade to a higher priced item to sell to offset the new fee structure.
    Anyhow, I miss the overlooked treasure part. I look forward to seeing what new thing is out there that we are missing. For instance, I came across a Master Marvelworks book on The Avengers Nos, 21-30 still in the shrinkwrap. These books are selling very well on ebay. I couldn’t find that particular volume as having sold on ebay after doing a little research on completed lists. How big is this overlooked treasure?

    Thanks again. Laurette
    http://www.magickidsusa.com
    ID: MK51485

  34. Karen - February 12th, 2008 at 9:28 am

    Hi
    It seems us little guys are on the way out. I have been trying to make enough money to stay home but it is not working out.

  35. ape - February 12th, 2008 at 9:55 am

    Thanks for the spreadsheet. I just have one question. You stated that you make your money when you buy the item, not when you sell it. What do you mean? I have dabbled in selling on ebay off and on for a few years. I have bought several items at garage sales and thrift shops thinking maybe they would be profitable sales. However, when I get home and look at the completed items, most often there is little room for profit. So, in this case I’m not really making money when purchasing the item. I guess you’re saying that you make your money when you buy an item, only if it will sell, right?? I would greatly appreciate clarification and any suggestions you have for me. Thanks!

  36. Susan - February 12th, 2008 at 10:28 am

    We are “lower level” power sellers (sales = $2,000/month) with a reasonably high profit margin and sell through, and our calculations show that the discounted fees will pretty much be a wash for us, so not really a big problem there. What we do feel is that our 100% positive feedback rating, which we absolutely bust our “you know whats” to maintain, is one reason why our items often sell at a somewhat higher price than the lowest price listed out there for comparable items. We subscribe to the opinion that some ebayers may be overlooking an intentional connection between the higher fees, discounted fees, and the no negative feedback rule - considering these to be separate strategies. However, with no limitations on customer feedback, ebay has deliberately built in a mechanism that will likely lower high positive feedback ratings for most lower volume power sellers over time, beyond the point of being able to take advantage of discounted fees. This strategy allows ebay to project increased profits over time as fewer and fewer “lilly white” power sellers (as we were referred to by an ebay spokesperson in a recent interview) will be able to maintain their high scoring reputations. Only the largest power sellers (which I read is where ebay makes 80% of its profits) would be somewhat immune, simply because of the quantity of negative feedback it would take to impact their scores. That said, we are continuing to aggressively list items on ebay to take advantage of the window of opportunity that remains, and we are also exploring alternative venues, and hoping to learn where others who are leaving ebay will be taking their business, to see if one venue or another grows to a size that will allow us to support and grow our business. Best regards, and best of luck to all the other ebayers out there! - Susan

  37. Lesley - February 12th, 2008 at 10:47 am

    I would like to see an analysis using items sold largely through an ebay store where the initial listing fees are far less but now the FVF will be significantly increased.

    Unfortunately I’m not a power seller so the additional discount does not apply to me.

    Lesley

  38. David - February 12th, 2008 at 11:23 am

    Thanks for the info. You are correct in saying that your profit is made on the purchase. I like to buy large lots and then break it all down, it tends to work out very well.

  39. Barbara - February 12th, 2008 at 11:32 am

    I also like the idea of the free gallery and the big whopping decrease of five cents for the listing fees :). I guess there has to be an increase in the item you are selling to make a profit acceptable for your time, item and shipping.
    I also would like your input about the rating change. We sellers are also buyers, or does ebay think we are somewhere off the shelf. I don’t think its fair that ebay is giving the buyer that much control on our business’. Ratings should be for all not just for one.
    You work hard for your business and some buyer can come along and just for the hell of it (he’s a seller also) and dosen’t like your face (web content) and says aha I will give him a bad rating and get him out of here, yes I may be stretching this a bit, but stupid things do happen.
    And yes you can be the best seller, and then????
    Just my silly input

  40. Larry - February 12th, 2008 at 11:57 am

    Scott,
    As always think you for your updates. I know that not everyone will agree with me but ebay is were it is at. I joined another auction site just to see how it compares and ebay has them beat. I listed a pair of $17.95 shoes they charged $6.00 to list it. Get this I went back in to revise the item and they charged me another .97 cents. The great thing about ebay is you have millions of people a day that shop.

  41. Srikanth - February 12th, 2008 at 8:03 pm

    While I don’t like the FB changes myself. I want to point out that a lot of people are really nice people. Yes I do get customers who try to do the FB extortion, but thankfully those kind of people are a very very small % of buyers. However I cant say the otherwise nice people wont see this an oppurtunity. I’ll keep my fingers crossed on this.

    And a few words of encouragement for Susan- While I see your point as a bookseller myself. I think if you talk to the people in charge of these libraries that you’re helping I think they’ll work with you. The reason being they like to get some money than none. Plus most libraries I go to the people are very nice. Dont give up.

  42. Blake at Memories2 - February 12th, 2008 at 8:36 pm

    I have been buying a few small things over the past two years. I was just thinking of getting involved in the selling end of things. My items would cost around $10.00, if there is indeed a market for them, which remains to be seen.

    But then these sweeping changes. I am not a big lover of change when something was rolling along so well - Ebay. To me it just seems like another corporate cash grab.

    I am a very busy person. I was just getting to the point where I would try things out and everything changes. What the Blue Blazes?

  43. Blake at Memories2 - February 12th, 2008 at 8:39 pm

    Sorry. I forgot to say thanks for the spreadsheet analysis. It appears that if you are going to sell it better be for a healthy profit. Is no feedback for buyers a bad thng? I honestly don’t have an opinion.

  44. Easy Auction Deals - February 13th, 2008 at 12:09 am

    The economy is tanking in America, I’m wondering what sort of effect that is going to have on Ebay.

  45. thelma - February 13th, 2008 at 11:11 am

    Hi!
    I am so pleased with the fee changes. It will take the pressure
    off of saving some money and give more incentive to sell, sell,
    sell–creating winners for all of us!
    I am workiing on the niche marketing idea for my ebay site. Because I do so many different things, I believe I was right to
    call my store home decors and enterprises because that is part of what I sell; most of the items I make.
    Now, I’m understanding what a real niche market is and with the Free Fee Gallery, I can sell more with the savings! The biggest wake-up idea for me, is that you can add more items around the niche!
    It is amazing what I learn from everyone. I read everyone’s
    blog and check your site out too!

  46. Kathy - February 13th, 2008 at 2:38 pm

    The sad thing is the small person like me may just have to give it up and have a big yard sale. But I’ve met so many wonderful people while selling that I hate to give it up. Maybe there is hope yet.

  47. RoseP - February 13th, 2008 at 8:07 pm

    What does all these new changes mean to someone just starting out on eBay? So far I have not had much luck in listings on eBay. Is this because I dont have a large number beside my name (experience) or am I not going about it the right way? Its easy enough to buy on eBay but I need some pointers on where I’m going wrong on selling.

  48. Find A Home Business - February 13th, 2008 at 9:30 pm

    As always great information.

  49. Scoobs - February 13th, 2008 at 9:42 pm

    I was just going to start ebaying overstock from my store and now they change everything….

    I’m also thinking of selling on Amazon, does anyone on here have any experience with them?

    Do any of you know of other auction sites besides ebay that I can check out?

    Thanks

  50. Maggie - February 13th, 2008 at 10:13 pm

    As always, A1 STUFF! Many thanks, and may You, and everyone else who reads and contributes to this blog continue to be successful! Love and Light Maggie

  51. Chicago_Walt - February 13th, 2008 at 11:20 pm

    Scott,

    THANK YOU for all you do for all of us! I enjoy reading this blog and all the e-mails from you. You make e-bay selling for me that much more fun!

    All the best and thanks again, You always give valid info here.

    Chicago_Walt

    http://www.webpageactors.com Let Adult Actors Sell UR Site
    http://www.telebay.com/cgimall/mall.html/ Consumers Greatest Internet Mall

  52. Chicago_Walt - February 13th, 2008 at 11:26 pm

    Opps…Above Link 404 Error

    This will correct it :-)

    http://www.telebay.com/cgimall/mall.html Consumers Greatest Internet Mall

    or

    http://www.telebay.com/cgimall Click Shopping :-)

  53. Joann - February 14th, 2008 at 4:42 pm

    Thanks Scott!
    At first the new fees sounded great. But since you put numbers to it, now I’m not so sure it was a good thing for us sellers.

  54. Online Auction Trader - February 14th, 2008 at 7:38 pm

    Makes all the hard work getting to powerseller level and maintaining it worthwhile, lets see what the DSR testing brings about and how many of the .com powersellers manage to maintain above 4.5..

  55. Richard - February 16th, 2008 at 6:39 pm

    Thanks, EzD, for the great tables and info; however, many of you have asked the question that was still bugging my wife and me afterwards, which is: How about us little guys who sell lower-priced items and have no intention of becoming a PowerSeller (e.g., the little guys who brought eBay into existence)?

    Well, we typically try to buy things at around two or three bucks that we try to sell for around ten, so I’ll just spell out what happens to us as the result of the new fee changes. Assuming our cost at $3, we would list the item at $9.99, and I will assume — as often happens — that, if the item sells, it gets only one bid .. therefore, a Final Sale Price of $9.99.

    (First of all, let me mention that the “nickel” savings on the “listing fee” will make NO difference as to whether we will list an item or not; the new 35-cent “list fee” just isn’t that much of a difference from the old 40-cent “list fee”.)

    So:
    OLD Fees Schedule:
    Item Cost: $3.00 __ Starting Price: $9.99 __ List Fee: $0.40 __ Final Sale Price: $9.99 __ Final Value Fee (5.25%): $0.52 __ Gross Profit: $6.99 __ Total Fees: $0.92 __ Fees as a Percent of “Gross Profit”: 13.16% ==> Our Net Profit: $6.07

    NEW Fees Schedule:
    Item Cost: $3.00 __ Starting Price: $9.99 __ List Fee: $0.35 __ Final Sale Price: $9.99 __ Final Value Fee (8.75%): $0.87 __ Gross Profit: $6.99 __ Total Fees: $1.22 __ Fees as a Percent of “Gross Profit”: 17.45% ==> Our Net Profit: $5.77

    Bottom line is that, for the little guy, the nickel difference in the listing fee will make zero difference in whether or not I should or will list the item; however, the new fee structure simply takes away 30 cents MORE than it did before.

  56. June - February 18th, 2008 at 3:22 am

    Thanks for the the info and all the comments, too! Some were very helpful.

    June

  57. Steve Hartman - October 17th, 2008 at 4:42 pm

    The Streets Don’t Lie…

    Through mismanagement and inexperience eBay has eroded the trust of millions and the publishers in the ePN program. Read this forum post about how John Donahoe and Steve Hartman are quickly becoming the laughing stock of the affiliate marketing commun…


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