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Effective February 2, 2004, the following fee changes will be made to eBay.com and eBay Motors in the U.S.: 

http://pages.ebay.com/help/announcement/1.html#question6
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I guess this is the glass half-full half-empty argument all over again.

Based on the increase in overall number of users, and specifically in the number of bids & winning bid amounts I am experiencing, eBay's increase is not even noticeable.

ShelbyBoy
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Based on the increase in overall number of users, and specifically in the number of bids & winning bid amounts I am experiencing, eBay's increase is not even noticeable.



Good point Shelby. I have seen a large increase in number of buyers as well. A lot of our items stay on the site for just a few hours before they are snapped up by buyers using BIN. Another positive for us has been the increased success of our eBay Store items where the listing fees are minimal. We have learned how to funnel potential buyers to our eBay store where the same items are listed for the same prices with less fees to eBay.

It is like you have a retail store in a big mall where traffic keeps increasing year after year and it is time to renew your lease. Of course you would expect to pay more for a new lease. Ebay is no different!

At this point, about the only thing that worries me about eBay as a shareholder is Google.

cheers,

Mehran,

SwapUSA
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I'm gonna have to side with EBAY on this one. And "gouged" is a pretty strong word to use... you're blowing this out of proportion.

Before I begin, a few quick numbers: the largest absolute change (non eBay motors) is in the listing fees for items $500 and up, from $3.30 to $4.80. That's a change of $1.50. The largest change for eBay Motors occurs in a couple categories, and results in an increase of $5.

Think about it this way:

- If you're a casual seller on eBay, the changes aren't going to affect you that much.

- On the other hand, if you rely on eBay for the bulk of your revenue, think about how you will sell your items without it. Would you be able to generate your current level of sales if eBay didn't exist? Would you be able to rent a storefront, advertise, and do all the things eBay does for you with that couple of bucks eBay asks for in fees? Ultimately, they're providing a service for you - one that makes you money.

- Also, the change in fees is accompanied by a whopping 60% reduction of fees for listing in eBay stores. eBay is obviously trying to encourage use of its stores, and providing a way out for sellers wishing to avoid the higher fees. The more stores there are on eBay, the more organized its marketplace is, and buyers and sellers both benefit. This is definitely a good move by eBay.

- Lastly, obviously the hardest hit will be eBay motor auctions and auctions for items above $500. For $500++ auctions - generally higher priced auctions have higher absolute profits and lower volume of sales. Thus the $1.50 increase shouldn't be that painful. As for eBay Motors, well, if you're selling cars and your profit margins are seriously eroded by an extra $5 per car, maybe it's time to rethink your business model!
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"gouged" is a pretty strong word to use

I list 100s of auctions with retail of $0.99 to $49.99
I clear about a 10% profit after being gouged by Ebay/Paypal
Like a bully, Ebay is eating nearly all my lunch with these increases.

Brian
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I list 100s of auctions with retail of $0.99 to $49.99
I clear about a 10% profit after being gouged by Ebay/Paypal
Like a bully, Ebay is eating nearly all my lunch with these increases.



Do you plan to keep selling on eBay after the fee increase?

ShelbyBoy
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I list 100s of auctions with retail of $0.99 to $49.99
I clear about a 10% profit after being gouged by Ebay/Paypal
Like a bully, Ebay is eating nearly all my lunch with these increases.



Assuming (?) you're selling commodity items, I wonder if eBay is trying to drive listings of this type over to the eBay stores where fees are lower?

ShelbyBoy
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I was talking only about eBay fees. Paypal is another monster altogether. I'll have to agree that Paypal does charge a high premium for its services and I've often been shocked by how much it strips away from my payments.

I don't know your circumstances, but maybe you could consider setting up an eBay store so your listing fees would decrease? The decrease in listing fees should more than make up for the fees incurred by running a store?

At the end of the day, if you still choose to sell on eBay, it means eBay is still your best avenue for making sales.

Thus while eBay may be eating more of your lunch, it is still the hand that feeds you. Are you going to bite it because it's offering you a little less food?
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