EDITED TO FIX MISTAKE
Note: The examples provided are only for the Books category.
EBay announced this week that beginning in June, sellers who use eBay's Sell Your Item form will receive five free listings each month. This means that sellers will not be charged for listing their first five items each month. At first, it sounds great. But...
In exchange for not getting charged for the insertion fees, sellers will pay a flat 8.75% in final value fees for those items, with a maximum final value fee of $20.00. Depending upon the closing amount, these five free listings could cause sellers to have higher fees. With the free listings, sellers pay 8.75% final value fees regardless of the selling price. For paid listings, sellers pay 8.75% for up to a final value of $25.00 and then just 3.5% for up to a final value of $1,000. This is how it breaks down:
1. I start a book at $9.99, and it closes with one bidder at $9.99. By paying the insertion fee, I am charged $0.25 for listing the book and $0.87 in final value fees. For the free listing, I am not charged $0.25 for listing the book but am still charged $0.87 in final value fees. I pay $0.25 less for the free listing.
2. I start a book at $9.99 and it closes at $50.00. By paying the insertion fee, I am charged $0.25 for listing the book and $3.07 in final value fees. For the free listing, I am not charged $0.25 for listing the book but am charged $4.38 in final value fees. I pay $0.81 more for the free listing.
3. I start a book at $74.99 and it closes at $74.99. By paying the insertion fee, I am charged $2.00 for listing the book and $3.94 in final value fees. For the free listing, I am not charged $2.00 for listing the book but am charged $6.56 in final value fees. I pay $0.62 more for the free listing.
4. I start a book at $74.99 and it closes at $150.00. By paying the insertion fee, I am charged $2.00 for listing the book and $6.57 in final value fees. For the free listing, I am not charged $2.00 for listing the book but am charged $13.13 in final value fees. I pay $4.56 more for the free listing.
For items with high values, like over $500.00, the free listings would be cheaper, but I never sell books that are that expensive. For what I list, the only way that I would save would be on books that sell for low prices, and the savings are minimal. I would prefer not to have free listings and to pay the usual final value fees.
Many people have stated that they plan to waste their five free listings on low value items that may or may not sell so that they can get the regular final value fee pricing for their normal items. I may try something like that when I next sell on eBay, assuming that I ever decide to list more than just bulk lots of low value books.
4 comments:
Jennifer,
I agree with you that the rule changing for the FV fee for free listings is typical ebay - more complications and more games where the seller can come out on the short end of the stick. However, your numbers are a bit off - the ebay listing fee of 10 cents is for media only, with starting prices BELOW $1, and it is 15 cents for other categories below $1.00. It is 25 cents for media from $1.00 - $9.99, and 35 cents for all other categories in this starting price range. It is 35 cents for media started at $9.99 - $24.99 and 55 cents for all other categories. (Then the insertion fees are the same over $25.00 starting price.) It's been this way for awhile and I believe this is one of the really big complaints - these insertion fees are relatively high for such low cost items. And because it doesn't end there. Add on the Final Value fee. And don't forget Paypal's transaction fee and percentage take, which of course they also get on the shipping paid by the buyer. Then add the fact that postal rates are relatively expensive for packages that don't qualify for media mail, and they are increasing. You will find for items between $1 and $10, the fees and shipping often double the cost of the item to the buyer. And if the item doesn't sell the first time, as a seller, how many times could you relist it before you are basically giving it away either through fees or lowering the price? If you add all this into your cost as overhead, your item is too expensive. I think it is only the excitement and chance that your item will bring more than you think that keeps many of the low-price, low-volume sellers at ebay. You do it for fun not to make money.
So unless you sell very high volume easy turnaround items, or more expensive items, it is really hard to make money on ebay. Selling books is actually a lot better than selling other items there, because the insertion fees are lower and the shipping rates are the least expensive type.
I think the free auctions might encourage new sellers to give it a try and will allow sellers to experiment and list items just to see if they will sell. Although it's not much money, it is more than 10 cents.
The thing I like about Bonanzle is that you set it up once and it's there and you never know when someone might pick up on it. And it's not costing you money until you sell. That's probably another reason ebay is offering the free listings. People don't mind paying so much when their stuff sells; it's when we pay for minimum exposure that results in no sales that we really complain. And that has been happening at ebay.
You're right; I did misread the fees table. I haven't sold in long enough that I can't remember the exact fees, and I should never figure stuff like this when I'm tired. I am going to go back and correct the numbers in the message post.
For me, my plan is to only list what I feel fairly confident will sell on eBay, and I don't want to payer higher final value fees for what I sell. Of course I may change my mind; anything is possible.
I think it is only the excitement and chance that your item will bring more than you think that keeps many of the low-price, low-volume sellers at ebay. You do it for fun not to make money.
That used to be my reason for selling on eBay. It was fun. I have not had fun since August. Since that time, each time I tried to sell my DSRs were in the red. The DSRs immediately went up after my items closed. Then after I waited a month or more to sell again, the DSRs went red again right after I listed my items. It really seemed like a conspiracy, but I guess I was having really bad luck with the ratings people gave me and I kept having good or bad DSRs roll off and change my DSRs at exactly the wrong times. I was penalized in best match each time I tried to sell, but I had raised search exposure whenever I was not selling. It was little wonder that I couldn't sell my items.
I simply do not trust them as far as you can throw them.
With every new policy, it is a way to screw us.
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