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January 29, 2008 9:22 AM PST

eBay lowers listing fees

by Elinor Mills

As expected, eBay has lowered fees for listing items to sell and adjusted other fees in response to a slowdown in sales activity on the online auction site. The company also said on Tuesday that it is raising its commission for items that sell, which reduces the risk for sellers in the event an item does not sell, and is offering a free gallery picture with each listing.

Last week, eBay announced that Chief Executive Meg Whitman would step down after 10 years at the helm to make way for fresh leadership. She is being replaced by John Donahoe, head of eBay Marketplaces.

Elinor Mills covers Internet security and privacy. She joined CNET News in 2005 after working as a foreign correspondent for Reuters in Portugal and writing for The Industry Standard, the IDG News Service, and the Associated Press. E-mail Elinor.
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Finally
by Astinsan January 29, 2008 11:35 AM PST
I haven't sold anything on ebay since all of the ridiculous price increases.

Support needs to be improved also. You would think that with the price increase you would see better support.
Reply to this comment
Question
by sandersitos January 29, 2008 1:14 PM PST
What are the fee differences? I've been turned off by some other things that eBay has done but I'm curious of the fee changes.

She must be stepping off at the right time. That's a long time for CEOs these days. I wonder how well the company would have done with someone else at the helm for the last 10 years.
Finally
by Astinsan January 29, 2008 11:35 AM PST
I haven't sold anything on ebay since all of the ridiculous price increases.

Support needs to be improved also. You would think that with the price increase you would see better support.
Reply to this comment
Question
by sandersitos January 29, 2008 1:14 PM PST
What are the fee differences? I've been turned off by some other things that eBay has done but I'm curious of the fee changes.

She must be stepping off at the right time. That's a long time for CEOs these days. I wonder how well the company would have done with someone else at the helm for the last 10 years.
commission fees offset savings
by toddallyn January 29, 2008 6:32 PM PST
I did a quick check on the low end - and while the listing fees are
going down, the higher commission is so much higher (first $25 is
now 8.75% commission instead of 5.25% - a whopping 66%
increase) that while your risk is down for listing - your revenue is
down if your item sells. Hardly the "value" "rewards" and "great
customer service" they're using to describe the change in their
email to sellers.
Reply to this comment
commission fees offset savings
by toddallyn January 29, 2008 6:32 PM PST
I did a quick check on the low end - and while the listing fees are
going down, the higher commission is so much higher (first $25 is
now 8.75% commission instead of 5.25% - a whopping 66%
increase) that while your risk is down for listing - your revenue is
down if your item sells. Hardly the "value" "rewards" and "great
customer service" they're using to describe the change in their
email to sellers.
Reply to this comment
Alternatives to eBay
by alternative2ebay February 6, 2008 1:36 AM PST
Since the fvf increase I'm now looking for a good alternative to eBay such as eBid etc.

I found out more about ebid at <a class="jive-link-external" href="http://www.ukebid.com" target="_newWindow">http://www.ukebid.com</a>

eBid has been running for 10 years and operates sites for 14 countries so like eBay it's a trusted and well established auction site and not a "Here today gone tomorrow" auction site.
Reply to this comment
Alternatives to eBay
by alternative2ebay February 6, 2008 1:36 AM PST
Since the fvf increase I'm now looking for a good alternative to eBay such as eBid etc.

I found out more about ebid at <a class="jive-link-external" href="http://www.ukebid.com" target="_newWindow">http://www.ukebid.com</a>

eBid has been running for 10 years and operates sites for 14 countries so like eBay it's a trusted and well established auction site and not a "Here today gone tomorrow" auction site.
Reply to this comment
by daviddbal January 30, 2010 4:10 AM PST
EBAY SERFDOM
EBay Fee Changes 2010

The eBay marketplace is like the serf-based feudal system of medieval Europe. In medieval Europe there were rich land owners called lords. The lords had subjects called serfs that worked their land growing crops. The lords did not labor ? except to occasionally whip the serfs to keep them working hard. The serfs were required to pay a large portion of the crops they grew to the lords as a form of rent. The big problem is that the serfs were trapped ? they had no means of feeding themselves without the use the lord?s land. This problem led to abuses and near-slavery for the serfs.

EBay strives to create such a system today. EBay owns the marketplace ? the eBay site. The marketplace is like the land in the feudal system. Because eBay is by-far the dominate marketplace on the Internet they can act like a lord. EBay can dictate any rules they want to the sellers. If the seller depend on eBay?s for their livelihood are required to comply or starve.

The new fee changes will cause most sellers to pay a lot more. Typical small to medium eBay store sellers will see listing fee increases from 70-150%.

EBay wants to help those sellers earn the money they need to pay the higher fees. Sellers now get all items in full search results. This should result in more sales. With the extra sales sellers will be able to pay eBay more.

These changes are like the feudal lord telling the serfs that he is generously increasing their farming area to 3 acres from 2 acres. At first this seems wonderful. It will help the serfs grow more food for their families, but it is not as it seems. Later it is revealed that the land rent has increased from the crops from just 1 acre to the crops from 2 acres. The serfs still keep the crops from 1 acre ? same as before. Now the Lord gets double. The serfs just work harder ? all for the lord. EBay is playing the same game.

As long as eBay is the dominate marketplace sellers should only expect the situation to get worse. Don?t allow eBay to turn you into a modern-day serf!
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