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EcommerceBytes-NewsFlash, Number 2218 - February 08, 2010 - ISSN 1539-5065     | Next
Survey Shows Small Sellers Taking Brunt of eBay Fee Changes
By Ina Steiner
EcommerceBytes.com
February 08, 2010




AuctionBytes conducted a survey to determine how eBay sellers were affected by upcoming changes to fees - the overall survey results were published in yesterday's AuctionBytes Update newsletter. The survey asked sellers how eBay's new fee structure, coming March 30, 2010, would impact them and what, if any, action they would take as a result of the changes.

We examined differences in how sellers answered the survey based on a number of criteria: seller status, annual sales, and by certain categories, and sure enough, yielded some interesting results, published below.

Overview
Lowest-volume sellers were more likely to report that the new fee structure would result in higher monthly fees, and they were most skeptical that their sell-through rate will improve - except for one tier: no seller with GMV of between $500,001 - $1,000,000 believed that their sell-through rate would go up as a result of eBay eliminating Store Inventory format.

Top Rated sellers were slightly more optimistic than non-TRS sellers about the impact of the new fee structure, perhaps because eBay gives Top Rated sellers discounts and better exposure in search. When eBay eliminates Stores Inventory format, core search will be flooded with fixed-price listings, making exposure in search even more important to sellers.

eBay is moving further toward category-based pricing with its new fee structure. While the majority of sellers who took the survey believed their fees would go up (76%), a greater percentage of sellers in the Media category believed their monthly fees would increase, while a lower percentage of sellers in the Clothing, Shoes & Accessories, Consumer Electronics, and Computers & Networking categories believed their fees would increase.

The survey shows that the majority of sellers who took the survey believe their fees will go up, but it also shows the complexity of the new fee structure and clearly shows that some sellers will be impacted more negatively than other sellers.

Breaking It Down by Seller Status: Top Rated Sellers
Survey respondents were almost equally split into Top Rated sellers (50.8%) and non-Top Rated sellers (49.2%). Top Rated sellers were slightly more optimistic than non-TRS sellers about the impact of fees: 11.9% of TRS sellers said it would be less expensive for them to sell as an eBay Store subscriber compared to only 5.9% of non-TRS sellers; 17.8% of TRS sellers said their sell through rate would improve as a result of the elimination of the Stores inventory format compared to 10.3% of non-TRS sellers.

Twice as many non-TRS sellers said they planned to stop selling on eBay (20%), and 24.6% of TRS sellers said they planned to upgrade their eBay Store compared to 10.4% of non-TRS sellers. TRS sellers also planned to list more items on eBay than non-TRS sellers (16.2% compared to 8.9%).

Breaking It Down by GMV
We broke down annual GMV into five groupings (gross merchandise volume - the value of all items sold over the last 12 months); note that the respondents were heavily weighted into lower GMV:

  • Up to $50,000 - 77.7%
  • Between $50,001 - $100,000 - 10.1%
  • Between $100,001 - $500,000 - 6.7%
  • Between $500,001 - $1,000,000 - 1.3%
  • Over $1,000,000 - 4.1%

The results are reported in the following table:

eBay announced on January 26 that it would change its fee structure at the end of March 2010. Please indicate what impact the changes will have on your business.
  12 Mo. GMV: <$50,000 12 Mo. GMV: $50,001 - $100,000 12 Mo. GMV: $100,001 - $500,000 12 Mo. GMV: $500,000 - $1,000,000 12 Mo. GMV: over >$1,000,000
Under the new eBay.com fee structure, my monthly eBay fees will go down 8.6% 14.6% 31.7% 22.2% 20.0%
Under the new eBay.com fee structure, my monthly eBay fees will go up 80.3% 59.4% 50.8% 77.8% 74.3%
Under the new eBay.com fee structure, my monthly eBay fees will stay the same 4.6% 14.6% 4.8% 0.0% 2.9%
Don't know 6.4% 11.5% 12.7% 0.0% 2.9%
As part of its changes to its fee structure, eBay will change fees for auction listings; please indicate the effect on your business.
  12 Mo. GMV: <$50,000 12 Mo. GMV: $50,001 - $100,000 12 Mo. GMV: $100,001 - $500,000 12 Mo. GMV: $500,000 - $1,000,000 12 Mo. GMV: over >$1,000,000
It will be less expensive for me to sell in the auction format 18.3% 28.1% 19.0% 11.1% 17.1%
It will be more expensive for me to sell with the auction format 54.1% 50.0% 49.2% 66.7% 45.7%
There will be no change in my costs of selling in the auction format 10.6% 7.3% 17.5% 11.1% 5.7%
I don't list in the auction format 17.0% 14.6% 14.3% 11.1% 31.4%
eBay will offer sellers the opportunity to list up to 100 auctions a month for free for auctions with a starting price under $1 (Final Value Fees will apply). How will this impact you?
  12 Mo. GMV: <$50,000 12 Mo. GMV: $50,001 - $100,000 12 Mo. GMV: $100,001 - $500,000 12 Mo. GMV: $500,000 - $1,000,000 12 Mo. GMV: over >$1,000,000
Positive impact on my business 6.8% 7.4% 6.3% 11.1% 5.9%
Negative impact on my business 37.0% 16.8% 30.2% 11.1% 26.5%
Neutral impact on my business 42.4% 66.3% 55.6% 66.7% 55.9%
I don't know 13.8% 9.5% 7.9% 11.1% 11.8%
eBay is changing the fee structure for Store subscribers, please indicate the effect these changes will have on your business.
  12 Mo. GMV: <$50,000 12 Mo. GMV: $50,001 - $100,000 12 Mo. GMV: $100,001 - $500,000 12 Mo. GMV: $500,000 - $1,000,000 12 Mo. GMV: over >$1,000,000
It will be less expensive for me to sell as an eBay Store subscriber 6.1% 11.7% 28.6% 11.1% 23.5%
It will be more expensive for me to sell as an eBay Store subscriber 56.1% 48.9% 42.9% 88.9% 55.9%
There will be no change in my costs of selling as an eBay Store subscriber 3.2% 16.0% 11.1% 0.0% 2.9%
I do not have an eBay Store subscription 34.6% 23.4% 17.5% 0.0% 17.6%

eBay is doing away with the Store Inventory Format - all fixed-price listings will appear in the core eBay.com search results. Please indicate what kind of impact that will have on your business, regardless of whether you have an eBay Store or not.

  12 Mo. GMV: <$50,000 12 Mo. GMV: $50,001 - $100,000 12 Mo. GMV: $100,001 - $500,000 12 Mo. GMV: $500,000 - $1,000,000 12 Mo. GMV: over >$1,000,000
Positive impact on my business 23.4% 31.6% 37.7% 12.5% 34.3%
Negative impact on my business 46.1% 41.1% 37.7% 50% 34.3%
Neutral impact on my business 30.5% 27.4% 24.6% 37.5% 31.4%
Please indicate the effect you think the elimination of the Stores Inventory format will have on the sell-through rate of your listings, regardless of whether you have an eBay Store or not.
  12 Mo. GMV: <$50,000 12 Mo. GMV: $50,001 - $100,000 12 Mo. GMV: $100,001 - $500,000 12 Mo. GMV: $500,000 - $1,000,000 12 Mo. GMV: over >$1,000,000
My sell through rate will improve 12.2% 24.2% 19.0% 0.0% 20.0%
My sell through rate will decline 36.1% 26.3% 31.7% 33.3% 20.0%
My sell through rate will not change 17.2% 24.2% 23.8% 33.3% 28.6%
I don't know 34.5% 25.3% 25.4% 33.3% 31.4%
Do you plan to make any changes to your business due to fee and/or policy changes announced by eBay on January 26, 2010? (Please check all that apply.)
  12 Mo. GMV: <$50,000 12 Mo. GMV: $50,001 - $100,000 12 Mo. GMV: $100,001 - $500,000 12 Mo. GMV: $500,000 - $1,000,000 12 Mo. GMV: over >$1,000,000
I won't make any changes 12.5% 23.5% 20.7% 16.7% 14.3%
I will list more items on eBay 10.9% 20.0% 19.0% 33.3% 10.7%
I will list fewer items on eBay 46.2% 35.3% 37.9% 16.7% 46.4%
I will open an eBay Store 3.4% 8.2% 5.2% 16.7% 7.1%
I will close my eBay Store 19.1% 8.2% 1.7% 16.7% 14.3%
I will upgrade my eBay Store 17.1% 18.8% 22.4% 0.0% 17.9%
I will downgrade my eBay Store 2.6% 0.0% 0.0% 0.0% 3.6%
I will stop selling on eBay 16.3% 4.7% 12.1% 33.3% 10.7%

Breaking It Down by Category
eBay will impose different fee structures on certain categories, so we broke down the results into three category areas: Media; Clothing Shoes & Accessories; and Consumer Electronics and Computers & Networking.

Interestingly, the survey revealed that a higher number of sellers in the Media category reported that under the new eBay.com fee structure, their monthly eBay fees would increase - 83.3% - which is higher than the other categories and higher than the total population (75.8%). Sellers in the Consumer Electronics, Computers & Networking categories had the least number reporting a fee increase, but still over half, at 61.9%.

The survey results broken down by the three category groupings are published below.

eBay announced on January 26 that it would change its fee structure at the end of March 2010. Please indicate what impact the changes will have on your business.
  Media Category Clothing, Shoes & Accessories Consumer Electronics, Computers & Networking
Under the new eBay.com fee structure, my monthly eBay fees will go down 6.9% 15.9% 14.3%
Under the new eBay.com fee structure, my monthly eBay fees will go up 83.3% 68.1% 61.9%
Under the new eBay.com fee structure, my monthly eBay fees will stay the same 3.9% 6.2% 19.0%
Don't know 5.9% 9.7% 4.8%
As part of its changes to its fee structure, eBay will change fees for auction listings; please indicate the effect on your business.
  Media Category Clothing, Shoes & Accessories Consumer Electronics, Computers & Networking
It will be less expensive for me to sell in the auction format 14.9% 22.3% 25.0%
It will be more expensive for me to sell with the auction format 52.5% 50.0% 55.0%
There will be no change in my costs of selling in the auction format 5.9% 8.9% 5.0%
I don't list in the auction format 26.7% 18.8% 15.0%
eBay will offer sellers the opportunity to list up to 100 auctions a month for free for auctions with a starting price under $1 (Final Value Fees will apply). How will this impact you?
  Media Category Clothing, Shoes & Accessories Consumer Electronics, Computers & Networking
Positive impact on my business 6.9% 5.3% 9.5%
Negative impact on my business 35.6% 26.5% 33.3%
Neutral impact on my business 42.6% 56.6% 57.1%
I don't know 14.9% 11.5% 0.0%
eBay is changing the fee structure for Store subscribers, please indicate the effect these changes will have on your business.
  Media Category Clothing, Shoes & Accessories Consumer Electronics, Computers & Networking
It will be less expensive for me to sell as an eBay Store subscriber 8.0% 12.4% 15.0%
It will be more expensive for me to sell as an eBay Store subscriber 58.0% 49.6% 25.0%
There will be no change in my costs of selling as an eBay Store subscriber 3.0% 5.3% 5.0%
I do not have an eBay Store subscription 31.0% 32.7% 55.0%
eBay is doing away with the Store Inventory Format - all fixed-price listings will appear in the core eBay.com search results. Please indicate what kind of impact that will have on your business, regardless of whether you have an eBay Store or not.
  Media Category Clothing, Shoes & Accessories Consumer Electronics, Computers & Networking
Positive impact on my business 28.6% 27.0% 10.0%
Negative impact on my business 48.0% 45.0% 55.0%
Neutral impact on my business 23.5% 27.9% 35.0%
Please indicate the effect you think the elimination of the Stores Inventory format will have on the sell-through rate of your listings, regardless of whether you have an eBay Store or not.
  Media Category Clothing, Shoes & Accessories Consumer Electronics, Computers & Networking
My sell through rate will improve 16.7% 16.1% 14.3%
My sell through rate will decline 31.4% 31.3% 42.9%
My sell through rate will not change 12.7% 17.9% 28.6%
I don't know 39.2% 34.8% 14.3%
Do you plan to make any changes to your business due to fee and/or policy changes announced by eBay on January 26, 2010? (Please check all that apply.)
  Media Category Clothing, Shoes & Accessories Consumer Electronics, Computers & Networking
I won't make any changes 13.7% 15.9% 11.8%
I will list more items on eBay 7.4% 15.9% 17.6%
I will list fewer items on eBay 44.2% 40.2% 52.9%
I will open an eBay Store 7.4% 1.9% 0.0%
I will close my eBay Store 17.9% 16.8% 17.6%
I will upgrade my eBay Store 21.1% 20.6% 5.9%
I will downgrade my eBay Store 3.2% 0.9% 0.0%
I will stop selling on eBay 10.5% 14.0% 35.3%

Survey Results - Tell Us What You'd Like to See
We know there are lots of ways to slice and dice the data, so let us know on the AuctionBytes Blog what you'd like to see, and we'll post more data there as well.

Comment on the AuctionBytes Blog

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