eBays Latest Fee Increases--Is this the beginning of the end?

On January 13, eBay sellers received an unwelcome announcement from eBay. Fees were going up.

Partly due to our tendency to "skim" messages and partly due to the way in which the announcement was worded, the result was widespread panic and threats of mutiny.

Many sellers started to "boycott" eBay, and began taking their business to places like Yahoo auctions, and Overstock.com. After issuing another email "clarifying" the price increases, eBay finally sent everyone a "Message from Bill Cobb" on February 6.

Bill Cobb, who became President of eBay North America in December of 1004, stated that he'd been "taking it all in" and "thinking hard about how we can make sure eBay remains a fun, safe place to trade, and a prosperous home for our many dedicated sellers."

Cobb addressed the issue of fee increases, and concerns about customer support, trust and safety, and frequency of changes to the site.

Cobb also promised a number of improvements to customer service, a credit for store sellers and a reduction in the minimum insertion fees for auction style and fixed price listings. He even gave readers his email address and invited comments, promising to read every one of them!

The Bottom line here is that the most significant changes made will affect eBay Store owners. But Store items are offered at a price determined by the seller, so increased costs can be passed along to the buyer. This is what "real world" businesses do all the time. The cost of doing business rarely goes down and Business people learn to expect increases in overhead.

The reason for raising the "But it Now" listing fee is that eBay wants sellers to think harder about how they set prices in this category. Too many have been unrealistically high, which means merchandise doesn't turn over. It becomes "stale". eBay wants to see a fluid market, with quick turnover and fresh merchandise appearing all the time.

The Gallery image feature has gone up in price by about 30%, but the size of the image is being increased by 56%. Pictures sell products, and larger pictures mean that shoppers can see more details. I really don't see this as a bad thing.

If you haven't invested in eBay stock, now might be a good time (eBay intends to split shares on Feb.18). Investors are panicking over eBay's announcements, and their less than stellar 4th quarter 2004 performance in part due to major investments in China.

The dooms-dayers say the "bloom is off the eBay rose". I beg to differ. eBay is still the largest online auction venue, accounting for more volume than all of their competitors combined. There's no way eBay is going away, and it won't be long before sellers realize that business will go on as usual.

You can still make a great living on eBay, whether full or part time.

Carolyn Schweitzer is a retired dentist, eBay Powerseller, and ownner/editor of several websites. You can read the full article plus view eBay's price announcements and the letter from Bill Cobb at http://www.netbrainer.com/site/500041/page/ 473364

In The News:

Property: How to buy a house at auction  Yahoo Philippines News
Nobel in Auction | Economic and Political Weekly  Economic and Political Weekly
Auction in action for rare books  The New Indian Express

10 Tips to Starting a Financially Successful Ebay Business Startting Right Now

Ebay is Perhaps the easiest and fastest way to start... Read More

Seven Steps to eBay Selling Success

More and more people try their luck at selling on... Read More

An eBay Computer Purchase

An eBay purchase that turned sour.A story of fraud, deceit,... Read More

eBays Latest Fee Increases--Is this the beginning of the end?

On January 13, eBay sellers received an unwelcome announcement from... Read More

6 Reasons Why an eBay Business is the Easiest and Safest Home Business to Start

Calling internet auctions an "Entrepreneur's Dream" isn't poetic license or... Read More

Drop Shipping Increases Profits

You would like to increase your income by selling other... Read More

How Do You Find A Reliable Dropshipping Source?

A Dropshipper is someone who will anonymously send the goods... Read More

eBay Online Auction Sniping Secrets

Since their introduction several years ago, online auctions, such as... Read More

Learn How To Be A Successful eBay Seller

Anyone can sell anything on eBay. Open an account, list... Read More

Attract eBay Buyers Like Crazy!

As an ebay(TM) seller it happens very often (too often)... Read More

An Emerging Market in eBay Consignments: The eBay Trading Post (Part II In A Series)

In 2002, the eBay consignments business was born, referred to... Read More

Finding Antiques And Collectibles To Sell On eBay

Many people who decide to make a living selling collectibles... Read More

Save on EBay Fees with Free Image Hosting

Experienced sellers at online auction sites such as EBay will... Read More

Target Potential Bidders With Laser Beam Precision!

When a potential bidder (customer) is looking at a specific... Read More

The Ins and Outs of Dropshipping on eBay

Dropshipping is an attractive marketing technique, but when you take... Read More

From Ebay Zero to Power-Selling Hero: Don?t Be That Random Ebay Guy

If I could convey only one concept to someone who... Read More

Selling through Auction Marketplaces

Consumers are increasingly feeling more comfortable in buying products through... Read More

Used Cars For Sale On EBay

There are thousands of used cars for sale on eBay... Read More

Do You Sell Tires By Mail? Maybe You Should eBay

I just received an interesting email from eBay and it... Read More

How to Locate Drop Shippers for Your Success

Like the human heart, drop shippers can keep the blood... Read More

Top Internet Businesses

The internet is packed with web businesses jockeying for the... Read More

Royal Memorabilia ? An eBay Prince or Pauper?

There has always been a fascination with royalty and as... Read More

Photos on my eBay Auctions: How Do I Add Them?

On another forum I'm involved with, someone's asked a great... Read More

The Top Ten Antique Categories On eBay!

Knowledge is Power! And this statement could not be more... Read More

5 Reasons Why Playing Music On Your Auctions Is A Bummer Of An Idea

There are 147 million registered users on eBay, and tens... Read More