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.
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