 |
 |
|
|
 |
Is The eBay Fee Increase Actually Good For Business?
Fee Increase Leaves Some Sellers Angry, Others Thrilled Much of my email from readers this month concerned the recent announcement from eBay that it will increase many seller fees on February 18, 2005. Since many business people use eBay's online store system as their primary ecommerce point of sale, it's no surprise that most of the emails I received were of the angry variety. One email in particular caught my attention because it urged me to visit a website to sign an online petition protesting the fee hike. The email directed me to http://www.petitiononline.com/ebayfee/petition.html and upon further investigation I found that 22,548 digital signatures had already been collected (as of this writing). Thank goodness not all of them had my email address. This will be the fifth rate hike in as many years for the auction giant and should really come as no surprise. Price hikes are a normal course of business. It was the size of the hike that has many sellers upset. The rate hike involved the following fees: · A basic eBay Store will now cost sellers $15.95 a month, a 60% increase from the current $9.95 a month. · Closing commissions on most items sold through eBay Stores will increase by 50 percent. · Gallery photo fees will increase from 25 to 35 cents. · The Buy It Now fee will jump from a flat fee of 5 cents to 10 cents for items priced over $10 and 25 cents for items over $50. · Final value fees will rise from 5.25% to 8%. Many of the emails I received pointed out that small sellers are making very little profit as it is so the increase in fees will only serve to drive these sellers completely out of the eBay business. Some sellers accuse eBay of purposefully trying to run them off, but I doubt that's the case. eBay has no reason to drive away the small sellers, but that realization never occurs to those who feel they are being priced out of the market. Not everyone is too concerned over the fee increase. Jim Cockrum, eBay Powerseller, publisher of "Creative eBay Selling News," the world's largest newsletter on creative eBay selling, and author of one of the best selling eBay books of all time "The Silent Sales Machines Hiding On eBay" has other opinions. "I don't see the eBay fee increase as a bad thing," Cockrum said in a phone interview. "I actually see it as just the opposite - it's a good thing because eBay is eliminating my competition for me. Who leaves eBay when eBay increases seller fees? It's not the customers (or shoppers). They don't go anywhere since they aren't affected. Only a handful of the weaker sellers leave eBay when fees go up." Cockrum recommends that sellers use eBay in non-traditional ways to build their online businesses so that future fee hikes will not have an affect on their e-business. "Selling on eBay continues to be one of the more popular ways to make money online, though very few people are getting rich with an eBay business alone," Cockrum said. "Many Powersellers don't make enough profit to cover their costs. The key to really making money with eBay is not in selling items at auction, but to use eBay to drive customers to your other online ventures. If you do that, the rate hikes do not affect your bottomline nearly as much." Not everyone shares Cockrum's enthusiasm. Many small sellers think the government or a regulatory board of some kind should get involved to help keep eBay fees in line. This probably won't come to pass anytime soon, but who knows. I can remember when a little company called Microsoft had free rein before they killed off all comers and came to monopolize their market. eBay seems to be headed in the same direction. The threat of regulation may be the reason eBay is now attempting to smooth the ruffled feathers of the miffed masses. eBay announced this week that they would give a one-time $15.95 credit to eBay store owners and reduce minimum listing fees for inexpensive items from 30 cents to 25 cents, effective immediately. Too little, too late? Could be. Many sellers believe that eBay may be writing its own obituary with such stringent price increases and such little thought for the smaller merchant. The online petition predicted the long term effects of the fee increase to be: · Smaller sellers will stop selling on eBay and try to sell somewhere else online. They will never have the chance to expand themselves on eBay. · Larger sellers may consider starting their own online store or sell elsewhere. · Prices of auctions will increase. Buyers will turn back to retail stores. The idea of eBay is that you can find things cheaper there, even when adding shipping and handling together. · Discourage new sellers, decreasing competition (which is what the eBay market thrives on for pricing). Only time will tell if the predictions come true, but for the short term many smaller sellers are closing down their eBay stores and moving up the street to Yahoo.com. Here's to your success! Tim Knox Small Business Q&A is written by veteran entrepreneur and syndicated columnist, Tim Knox. Tim's latest books include "Small Business Success Secrets" and "The 30 Day Blueprint For Success!" Related Links: http://www.smallbusinessqa.com http://www.dropshipwholesale.net
MORE RESOURCES:
Google News |
|
|
|
RELATED ARTICLES
Buying At Auction: 6 Hints to Make You a Successful Bidder Buying at auction, be it for stamps or coins, antiques or even cattle, can be one of the most exciting and profitable experiences possible. It can also be expensive and utterly frustrating. Dropship Your Way To Ebusiness Success Q: I would like to start my own eBay business, but I really don't want to invest in a ton of inventory until I can get a better handle on what might or might not sell. I read another column about dropshipping, but I'm still a little fuzzy on how the whole process works. Where To Find Items To Sell On eBay One question that always seems to pop up is, "Where do I find products to sell on eBay?" Here are some ideas to get you started.Start at HomeWhen you first get started, it can be a little unnerving. How To Write a Traffic Pulling eBay Auction Title Selling an item on eBay should be simple but it is surprising how many people make some very silly mistakes.As a buyer this is fantastic, you can pick up some absolute bargains by finding poorly listed items. A New Definition of Buyer Beware "Who's Suzie?"My wife Katrina had been acting strangely ever since I had returned home from my Native American cultural class, not to mention the weird phone call I received just before I left, full of little pauses instead of our usual fast-paced communication. Now that I was home she had been pretty much ignoring me completely, then comes this strange question. eBay is the Greatest Opportunity YOU Have to Create a Career Online eBay's being spoken about everywhere these days. At work, school, down the pub. Auctions Make Money! An untapped online business resource--outside of your basic Yahoo and Ebay, among others--is setting up your own auction sales venue.Since most families have items in their home that have outlived their usefulness, they can get started at online auctions for mere pennies. Do You Pay Taxes On eBay Income? Q: I read your last column about paying income tax on eBay sales if you are doing it as a business, but as someone who only sells on eBay occasionally I'm still confused if the IRS rules apply to me. Can you tell me more? -- Norman L. eBay Bargain Hunting - Spell Your Way To Success! Have you ever wondered how identical items can fetch such widely differing prices on eBay? Or why some items fail to receive any bids at all?Sometimes it is a matter of luck, or just timing - especially for things which are pretty unique or where there are not many buyers.Many commentators however suggest that it has much more to do with the quality of the item title. How Professional Ebay Auction Templates Can Boost Your Ebay Sales Do you like to sell on eBay ? It's easy and fun, isn't it ? In fact, it's one of the easiest online business you can start almost overnight, without any major investments. That's the best thing about it. Save on EBay Fees with Free Image Hosting Experienced sellers at online auction sites such as EBay will tell you that the single most effective tool of persuasion is a good image. Multiple images are even better. eBay After Sales - as Important as the Listing Itself Your eBay listing has finished and you have made a sale, now the next important stage starts - the after sales. Again we are aiming to develop the professional image or ourselves in the customers eyes to encourage them to come back to us again and again because it is easier to sell to a current customer than it is to a new customer. Five Ways To Detect Shill Bidders On eBay So That You Dont Pay Absurd Prices There is as a lot of buzz about shill bidders on the eBay forums. But in actuality, shrill bidding isn't that common and is rather easily detected. Are You an Ebay Shopper? As I write this article, I am keeping an eye on an item on eBay. Do I have to keep an eye on it? No. eBay: What Should I Sell? There is an art to picking profitable products. It's not just what you want to sell but rather what will sell. Selling on eBay - Have You Found the Magic Formula Yet? Selling on eBay can be very profitable and a great way to make some cash while clearing your house of unwanted items at the same time. It's quite simple, just describe and photograph your items and seven to ten days later you'll get a payment though paypal or by cheque posted to you. Drop Shipping Your Way to Increased Profits Drop shipping, for those who are unfamiliar with it, is a system whereby you promote the products of a particular manufacturer, take orders directly, and the manufacturer/source handles all the inventory and fulfillment functions for you.In a nutshell, here is the drop-ship system:==>You generate and accept the order. Increase your eBay Profits the Easy Way Sometimes the simplest things can boost the number of visitors and bids to your auction listings and increase your eBay profits.Robert G. 3 Unusual Formats For Auctions on EBay eBay users are accustomed to only two "standard" formats for sales on eBay: either the 'regular' auction which involves bidding and waiting; and the Buy It Now, which is an instant purchase.But there are three other formats that are less well known. How To Find Tons of Hot Items Selling On EBay ...In Less Than 10 Minutes There are many ways to start a home business online, and few are easier than eBay - the world's largest online auction site. However, there is one critical condition - you have to know what to sell and how to sell it.
|
| home | site map |
| © 2006 |