Tuesday, August 26, 2008

eBay get Greedier

With the new fee increases eBay are planning to introduce next month it seems like they are trying to focus on businesses and Fixed-price auctions. Last time they did this a few months ago it caused a lot of sellers to boycott the auction site in protest of the price increased - and now they are set to do it again.

These latest price increases are geared more towards encouraging users to sell more items and have eBay shops - though this isn't any use for your basic auctioneer.

Overall, we are continuing our commitment to moving the cost of selling an item on
eBay.co.uk away from the front-end insertion fee and increasing the final value fees, so that
the majority of fees are paid only when you successfully sell an item.
What on Earth are they talking about? They've increased both prices! So I'm not sure quite how that's supposed to work. Their table shows their price increases with the 3rd column being current prices, the 4th column being new prices for non-shop sellers, and the following 3 columns being for eBay shops.

They ARE decreasing prices, but only if you're on of their featured shops, or anchor shops. Private sellers and small shops will (for cheaper items) be paying a lot more.
Final Sale PriceFinal Value Fee (current)Final Value Fee (new)
Item not soldNo FeeNo Fee
£0.01 - £29.99
£30.00 - £49.99
7.5%
4.5%
9.9%
£50.00 - £599.994.5%5.9%
Over £6001.9%1.9%


It seems these price increases are to make up for the dwindling number of sellers after their last price increases just a few short months ago. Although a steady increase in profits is necessary for an ever growing company such as eBay it should probably not be done this way as it will only mean more people will eventually stop selling on the popular auction site. It may actually mean that eventually it will become impractical for private sellers (not businesses) to sell their "stuff" on eBay.

They're just too greedy.

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