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EcommerceBytes-NewsFlash, Number 1328 - July 21, 2006 - ISSN 1539-5065     | Next
International Fallout over eBay Fee Hike
By Ina Steiner
EcommerceBytes.com
July 21, 2006




eBay sellers in Australia and the UK were as unhappy as those in North America over eBay hikes in Store fees. And while eBay is charging sellers higher fees for Store listings, they are at the same time decreasing Store listings visibility to potential buyers by rolling back Stores in Search effective August 1. eBay had rolled back Stores in Search on the U.S. site in March (http://www.auctionbytes.com/cab/abn/y06/m03/i29/s01).

An Australian seller said of Wednesday's announcements, "The rationale for the hikes does not make sense. They are raising fees because they flooded the site by displaying all store listings along side auction listings. They are now removing the store listings from the basic display - but upping the fees for store listings! .... Surely the consequences of this should have been obvious...."

Another Australian seller said she would be listing most of her items on Oztion and would open her own web site. "The novelty of auctions has long since worn off & we are facing the "now generation" along with vastly improved search engines & capabilities, product saturation. They (eBay) are trying to turn the clock back 10 years & it will not work."

Sellers came on to The Round Table discussion board on eBay Australia to express their thoughts on the Store fee increases. As of Thursday night, 392 eBay sellers had signed a protest thread (http://forums.ebay.com.au/thread.jspa?threadID=500024740).

eBay is raising monthly Store subscription fees in Australia and is also increasing insertion fees from 10 cents per item across the board fee to a 3-tiered system ranging from 10 cents to 50 cents per item. Final Value Fees remain a 3-tiered system and go from 5.25%, 2.75%, and 1.5% to 10%, 5% and 2.5% - basically doubling the cost of selling items in Stores for sellers in Australia.

In the UK, Store subscription fees remain the same. Store listing fees will go from 3 pence per item across the board to a 5-tiered system ranging from 3 pence to 11 pence. Final value (commission) fees will go from a 3-tiered system (6.75%, 3.75%, 1.75%) to a 5-tiered system (10%, 8%, 6%, 4%, 2%). eBay had just adjusted fees in Feburary, when they lowered insertion fees and raised final value fees.

Sellers voiced anger and concern over Wednesday's announcements in the eBay UK discussion boards, such as this seller:

"I am trying hard to find a positive in this situation. I too am really angry about this double wammy. When I read the less visibility I was gutted, and then saw costs changes, I assumed they would be lower.......................... WHAT!!!!! Higher!!!!!!"

eBay said it made the changes to rebalance the marketplace and improve the buyer experience. For more information and further details, check each country's announcement board.

eBay Australia Announcement
http://www2.ebay.com/aw/au/200607200804312.html

eBay UK Announcement
http://www2.ebay.com/aw/uk/200607191907212.html
And current fees:
http://pages.ebay.co.uk/help/sell/storefees.html

eBay Ireland Announcement
http://www2.ebay.com/aw/uk/200607191826212.html

eBay Canada Announcement
http://www2.ebay.com/aw/ca/200607191623142.html

AuctionBytes article about eBay.com Fee Increases
http://auctionbytes.com/cab/abn/y06/m07/i20/s01

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