Ebay Increases Prices, Significantly

Suicane75 · 01-14-2005, 04:07 AM

http://story.news.yahoo.com/news?tmp...bay_price_hike

EBay to Increase Fees, Angering Sellers

Thu Jan 13, 8:59 PM ET

Add to My Yahoo! Technology - AP

By RACHEL KONRAD, AP Technology Writer

SAN JOSE, Calif. - Some small business owners who reach most of their customers via eBay Inc. expressed anger Thursday at the online auction giant's plan to boost the monthly fee it charges sellers by 60 percent. Its shares lost nearly 4 percent.

EBay outlined the increase in a terse e-mail on Wednesday to all buyers and sellers, including small business owners who hawk clothing, electronics and other low-margin commodities.

"It seems as though the larger eBay becomes, the more greedy they become," said Lynette McDonald of Alton, Ill., who has sold Barbie and baby clothes on eBay since 2001. She says she may close her eBay store entirely because of the fee hikes or raise prices she changes buyers.

Starting Feb. 18, eBay said the monthly subscription fee for people who operate "Basic eBay Stores" will increase from $9.95 to $15.95.

The fee for a standard listing of 10 days will double, from 20 cents to 40 cents.

"This site used to be a place where one could get a good deal," McDonald said. "Now that the starting prices on goods are higher to accommodate the growing fees incurred, there are no more deals to be had."

Such reactions underscore the popularity eBay has achieved with small business owners who can't create their own Web sites or operate a traditional bricks-and-mortar establishments. Peddling vintage china, handmade sweaters, classic cars and other collectibles on eBay generates supplemental income for senior citizens, rural Americans and others who live far from commercial hubs.

EBay spokesman Hani Durzy declined to discuss how the price hikes would affect revenue at the San Jose, Calif.-based company, which reported sales of $805.88 million in the first three quarters of 2004. The company will report fourth-quarter earnings on Wednesday.

"We believe the price changes are the right thing to do to ensure the continued success of the marketplace," Durzy said. "Ultimately that's good for the entire community of buyers and sellers."

The changes, combined with eBay's dominance in the auction and online payment sectors, prompted some members to ask whether the government or a fair-business consortium should regulate fee structures so small-scale entrepreneurs don't get gouged.

"Yes, it is a free market and sellers can take their business elsewhere, but there is very little competition for this style format," said Artie Klawans, an art dealer in Ft. Lauderdale, Fla.

EBay shares fell $4.12 to close at $103.13 on the Nasdaq Stock Market. Its shares were at a 52-week high of $118.42 in December.

I don't even use them that often, but even i'll be thinking hard about other ways to get rid of stuff now, these price changes are a bit absurd IMO, i can see a .5 hike across the board but the doubling of base prices and other increases baffle me a little bit.

Samdari · 01-14-2005, 05:19 AM

Quote:

Originally Posted by Suicane75

I don't even use them that often, but even i'll be thinking hard about other ways to get rid of stuff now, these price changes are a bit absurd IMO, i can see a .5 hike across the board but the doubling of base prices and other increases baffle me a little bit.

I think this is a little absurd to be so upset over an increase of twenty cents. If they charged a dollar from the beginning, it still would have been a great servicce.

Also, those business owners who do all their selling through ebay - $15.95 a month is pretty cheap for operating costs. I know the percentages seem high, but ebay remains a ludicrously cheap way to either sell a single item, or operate a business.

albionmoonlight · 01-14-2005, 07:03 AM

I'm a pretty liberal guy and one of the last people left in America who beleives that government regulation is still mostly a good thing.

But I have no problem with this whatsoever. They kept their prices low to get marketshare. Now, they have it, and they are raising prices because they can.

If it gets too expensive, more people will go to Yahoo auctions, get stuff used on Amazon, etc. That is how the system works.

It would be a funny world in which the price of medicine kept millions of Americans without health insurance--but we had the government step in to make sure that Ebay seller fees stayed reasonable.

Suicane75 · 01-14-2005, 08:13 AM

I'm not angered or upset that they can do it, it's there right, i would never argue that. However, it's not just 20 cents. It's 20 cents insertion (heh, heh, heh). Plus added final cost %, plus more for buy it now. Lets put it this way, if i have something I wanna sell, and I only think it's gonna fetch me $5-$7, I would seriously consider just chucking it in the garbage or trying to give it away as my profit margin is gonna be cut into considerably enough that it isnt worth the hassle. Thats all i'm sayin.

Anthony · 01-14-2005, 08:40 AM

i can't stand people who think they can just sell all their junk online. these are the same people who think it's good to have yard sales because they, with their meaningless lives would actually have something of value.

"profit margin" on junk that would fetch $5-$7? woof.

QuikSand · 01-14-2005, 08:46 AM

Quote:

Originally Posted by Suicane75

I'm not angered or upset that they can do it, it's there right, i would never argue that. However, it's not just 20 cents. It's 20 cents insertion (heh, heh, heh). Plus added final cost %, plus more for buy it now. Lets put it this way, if i have something I wanna sell, and I only think it's gonna fetch me $5-$7, I would seriously consider just chucking it in the garbage or trying to give it away as my profit margin is gonna be cut into considerably enough that it isnt worth the hassle. Thats all i'm sayin.

So, with your $7.00 item (the one that was previously worth it to you to sell on eBay because it would fetch $7.00) -- how much will there be, to you, in additional costs. Is it really more than 20 cents?

And whatever that total amount is - are you really saying that you'll just opt not to sell the item rather than pay the extra 20 cents (or whatever it totals)? (Honest question -- I find it somewhat hard to believe, but am interested)

cuervo72 · 01-14-2005, 09:02 AM

What about smaller items, like some children's toys, matchbox cars, etc? These sometimes go for very little...20 cents is more of a markup there. Some items might begin to disappear, or at the least be repackaged in larger groups.

Suicane75 · 01-14-2005, 09:03 AM

Quote:

Originally Posted by cuervo72

What about smaller items, like some children's toys, matchbox cars, etc? These sometimes go for very little...20 cents is more of a markup there. Some items might begin to disappear, or at the least be repackaged in larger groups.

Exactly.

Suicane75 · 01-14-2005, 09:04 AM

Quote:

Originally Posted by QuikSand

So, with your $7.00 item (the one that was previously worth it to you to sell on eBay because it would fetch $7.00) -- how much will there be, to you, in additional costs. Is it really more than 20 cents?

And whatever that total amount is - are you really saying that you'll just opt not to sell the item rather than pay the extra 20 cents (or whatever it totals)? (Honest question -- I find it somewhat hard to believe, but am interested)

I dont have the email that listed all the price increases so i can't give you a definitive answer on the price total, but it is much more than a .20 price increase. The closing fees have doubled as well, as well as pretty much every other fee that comes along with making a listing such as the "buy it now" option, the 10 day listing, yadda yadda yadda. Lemme put it this way, if I see something for $7.00 and end up paying 10% of that in fees, yeah, it really does make me not wanna bother. I'd likely ask around if anyone wanted it and if I got no offers i'd chuck it. And hell, I have some old DVD's that i'd like to get rid of that probably won't even fetch me $7, i sure as hell won't bother with them. All i'm saying is that the lower the return I expect, the less likely the raising of basic fees makes me to try and sell it.

Suicane75 · 01-14-2005, 09:05 AM

Quote:

Originally Posted by Hell Atlantic

i can't stand people who think they can just sell all their junk online. these are the same people who think it's good to have yard sales because they, with their meaningless lives would actually have something of value.

"profit margin" on junk that would fetch $5-$7? woof.

Hey numbnuts, I want to sell my DVD of Office Space, how much do you think I would get for it on Ebay? Probably from $5-$7. For some other less popular DVD's probably less. And you are not getting any lesbian action from me for a long time mister.

JonInMiddleGA · 01-14-2005, 09:13 AM

Last time I checked, there was no "right" to eBay. They're a business, just like plenty of other businesses, and they've got every right to dictate their own prices.

Besides, I expect most of the new charges to be recovered in "shipping & handling" instead of item pricing.

Anthony · 01-14-2005, 09:18 AM

you can get most decent DVD's like Office Space in the $10 bin at your local DVD seller. if i have to pay you $7 for a DVD + shipping and whatever make believe handling cost you add on to the shipping which would make it come out to just about $10 i'd be better off jsut going to the store and not risking dealing with a thief (not saying you're a thief, but my first thought when dealing with ebay sellers is that they're a theif and i'm taking a huge risk).

and i don't get it - if you gotta spend $1 to make $7 - wouldn't you do it. isn't that what you would call a great return? if all i had to do to make $7 in life was spend $1 or less i'd do it every time.

keep in mind you're selling junk (not to belittle your property). if your options are to throw it away for nothing or to pay under $1 to sell something for $7 not sure what your logic is here...

...unless the point is you're not being logical. at which case i'll move on.

Suicane75 · 01-14-2005, 09:35 AM

I understand both your points, my only argument is that if my profit margin is gonna be low to begin with, am I gonna be more inclined to continue doing it with a price increase or less inclined, well thats a pretty easy answer, im gonna be less inclined. Thats the only point I have.

And by the time I go to the store, pay paypal fees or go to the bank to cash the MO/Check, is it really worth it for $6? Not really to me it isn't.

So, does anyone want my DVD of Office Space?

Suicane75 · 01-14-2005, 09:36 AM

Quote:

Originally Posted by JonInMiddleGA

Last time I checked, there was no "right" to eBay. They're a business, just like plenty of other businesses, and they've got every right to dictate their own prices.

Besides, I expect most of the new charges to be recovered in "shipping & handling" instead of item pricing.

I would never argue against that, im just arguing over wether its wise or even necessary.

Dutch · 01-14-2005, 09:42 AM

I sell my used PC Games and Software and DVD movies through e-bay (I've sold about 30 or 40 items so far I think). I am never looking for a profit, just a subsidy to buy other stuff I want that my wife thinks is frivolous (like more PC Games, Software, and DVD's).

I charge $4.00 s/h for everthing. That includes basic USPS 1st class service, bubble wrap packaging, and a trip to the post office during my lunch breaks on the first day (Mon-Fri) after payment is received.

USPS 1st class shipping of a PC Game runs from $1.75 to $2.50 depending on stateside zip-code and heavier games with thick manuals can be $3.00. Add in somewhere between $.50 and $1.00 for the packaging, the shipping charge of $4.00 is the fair asking price for things of that nature.

Always check shipping charges, if you see somebody selling a PC Game on eBay with $7.50 or $15.00 shipping and handling charges, they are subsidizing their low auction price in the shipping charge. Probably goes without saying, but a nice reminder anyway.

QuikSand · 01-14-2005, 09:43 AM

Quote:

Originally Posted by Suicane75

And by the time I go to the store, pay paypal fees or go to the bank to cash the MO/Check, is it really worth it for $6? Not really to me it isn't.

I have no problem with this particular argument. I don't have the patience or interest to get involved with selling small items for small amounts like the $6 you mention.

But your argument above isn't that $6 isn't worth it. It's than $6.50 is worth it, but $6.00 is not. That's what intrigues me.

Anthony · 01-14-2005, 09:44 AM

i don't bother with selling on eBay. when i want to sell a game (even PC games) i go to this one nice game store that accepts all trade-ins. when i want to turn in some bad DVD's i go to any ole DVD selling place and trade them in for store credit and buy other DVD's. point being is i don't look to sell anything on eBay that i can't trade in to get something else. it's instant gratification rather than waiting for checks to cash and such.

JonInMiddleGA · 01-14-2005, 09:45 AM

Quote:

Originally Posted by Suicane75

I would never argue against that, im just arguing over wether its wise or even necessary.

Oh, I didn't think you were arguing that point, I was thinking more of the damned fools in the article calling for governmental intervention.

Also from the article ... re-reading, I notice how they included sellers of vintage china among those affected by this. Trust me on this one, .20 + whatever% is NOT going to put those sellers out of business. My wife is an all too frequent customer in that category and at their prices, even $10-$20 upswings aren't going to dent those sellers at all. (It's not uncommon to find items selling in the $250 to $600 range).

sachmo71 · 01-14-2005, 09:49 AM

Quote:

Originally Posted by Hell Atlantic

i can't stand people who think they can just sell all their junk online. these are the same people who think it's good to have yard sales because they, with their meaningless lives would actually have something of value.

"profit margin" on junk that would fetch $5-$7? woof.

Usually your "grizzled hermit" schtick has at least a grain of humor to it. This is beneath you, HA.

Anthony · 01-14-2005, 10:02 AM

huh...?

you want schtick go watch the Three Stooges. i post what's on my mind. there's no QOTM in this board so i don't feel the need to write anything classic. not sure what your point is.

i hope you don't get by a car.

sachmo71 · 01-14-2005, 10:05 AM

Quote:

Originally Posted by Hell Atlantic

huh...?

you want schtick go watch the Three Stooges. i post what's on my mind. there's no QOTM in this board so i don't feel the need to write anything classic. not sure what your point is.

i hope you don't get by a car.

Nope...still not there.

I love you.

Suicane75 · 01-14-2005, 10:08 AM

Quote:

Originally Posted by QuikSand

I have no problem with this particular argument. I don't have the patience or interest to get involved with selling small items for small amounts like the $6 you mention.

But your argument above isn't that $6 isn't worth it. It's than $6.50 is worth it, but $6.00 is not. That's what intrigues me.

I understand your point, I guess what i'm saying is that when they start gouging me (I feel unescesarly) than I have to step back and consider wether I wanna bother. As I said in another post, when my profit is so low to begin with, do i wanna deal with paying more for it?

And yes, I butchered that word.

Suicane75 · 01-14-2005, 10:11 AM

Quote:

Originally Posted by Hell Atlantic

i don't bother with selling on eBay. when i want to sell a game (even PC games) i go to this one nice game store that accepts all trade-ins. when i want to turn in some bad DVD's i go to any ole DVD selling place and trade them in for store credit and buy other DVD's. point being is i don't look to sell anything on eBay that i can't trade in to get something else. it's instant gratification rather than waiting for checks to cash and such.

I dont have that option. I would need to get a ride a pretty good distance to go to a store like that, which would make it about as less worthwhile.

Anthony · 01-14-2005, 10:12 AM

Quote:

Originally Posted by sachmo71

Nope...still not there.

I love you.

ok, you got enough attention for today. carry on.

Anthony · 01-14-2005, 10:14 AM

Quote:

Originally Posted by Suicane75

I dont have that option. I would need to get a ride a pretty good distance to go to a store like that, which would make it about as less worthwhile.

sucks for you bro. that's why Jersey sucks compared to NYC; Jersey tries too hard to be like NY. Jersey is like that geek who stands by the showers who collects everyone's sweaty jocks. but it's ok, cuz he's on the team so he's one of the guys.

jersey sucks. cthomer is from jersey.

Suicane75 · 01-14-2005, 10:17 AM

Quote:

Originally Posted by Hell Atlantic

sucks for you bro. that's why Jersey sucks compared to NYC; Jersey tries too hard to be like NY. Jersey is like that geek who stands by the showers who collects everyone's sweaty jocks. but it's ok, cuz he's on the team so he's one of the guys.

jersey sucks. cthomer is from jersey.

I always thought NYC was the guy who smelled funny and mugged you after the game.

Hates_Cakesniffers · 01-15-2005, 10:49 AM

Wow, talk about being totally misinformed. I'm reading my copy of the email and I see that these are the areas being increased:

1) Gallery fees.

These are for extra pictures. I use a free photo hosting site for my extra pics. If you're using Gallery pics, you are not very smart. I have no issues with fools paying more.

2) Buy it Now Fees

I don't use Buy it now. Stores do. See below.

3) 10 day duration

The article is wrong in stating a ten day auction is 'standard'. Seven day is standard. That cost didn't change. Folks like us won't pay more.

4) The rest of the increases impact eBay stores and 'certain business and industrial categories,' and Motor Vehicles. Again, none of this impacts me or any ordinary eBay seller.

When all is said and done, I see no increase in costs for people like us selling old games, books and toys as we always have.

If I'm wrong, please point to the actual eBay announcement, not this flawed article, and show exactly where.

01-14-2005, 07:03 AM	#3
albionmoonlight Head Coach Join Date: Oct 2000 Location: North Carolina	I'm a pretty liberal guy and one of the last people left in America who beleives that government regulation is still mostly a good thing. But I have no problem with this whatsoever. They kept their prices low to get marketshare. Now, they have it, and they are raising prices because they can. If it gets too expensive, more people will go to Yahoo auctions, get stuff used on Amazon, etc. That is how the system works. It would be a funny world in which the price of medicine kept millions of Americans without health insurance--but we had the government step in to make sure that Ebay seller fees stayed reasonable. Last edited by albionmoonlight : 01-14-2005 at 07:04 AM. Reason: typoz

01-14-2005, 09:02 AM	#7
cuervo72 Head Coach Join Date: Dec 2002 Location: Maryland	What about smaller items, like some children's toys, matchbox cars, etc? These sometimes go for very little...20 cents is more of a markup there. Some items might begin to disappear, or at the least be repackaged in larger groups. __________________ null

01-14-2005, 09:13 AM	#11
JonInMiddleGA Hall Of Famer Join Date: Nov 2000 Location: Behind Enemy Lines in Athens, GA	Last time I checked, there was no "right" to eBay. They're a business, just like plenty of other businesses, and they've got every right to dictate their own prices. Besides, I expect most of the new charges to be recovered in "shipping & handling" instead of item pricing. __________________ "I lit another cigarette. Unless I specifically inform you to the contrary, I am always lighting another cigarette." - from a novel by Martin Amis

01-14-2005, 09:42 AM	#15
Dutch "Dutch" Join Date: Oct 2000 Location: Tampa, FL	I sell my used PC Games and Software and DVD movies through e-bay (I've sold about 30 or 40 items so far I think). I am never looking for a profit, just a subsidy to buy other stuff I want that my wife thinks is frivolous (like more PC Games, Software, and DVD's). I charge $4.00 s/h for everthing. That includes basic USPS 1st class service, bubble wrap packaging, and a trip to the post office during my lunch breaks on the first day (Mon-Fri) after payment is received. USPS 1st class shipping of a PC Game runs from $1.75 to $2.50 depending on stateside zip-code and heavier games with thick manuals can be $3.00. Add in somewhere between $.50 and $1.00 for the packaging, the shipping charge of $4.00 is the fair asking price for things of that nature. Always check shipping charges, if you see somebody selling a PC Game on eBay with $7.50 or $15.00 shipping and handling charges, they are subsidizing their low auction price in the shipping charge. Probably goes without saying, but a nice reminder anyway. Last edited by Dutch : 01-14-2005 at 09:42 AM.

01-14-2005, 09:44 AM	#17
Anthony Banned Join Date: Oct 2000 Location: Astoria, NY, USA	i don't bother with selling on eBay. when i want to sell a game (even PC games) i go to this one nice game store that accepts all trade-ins. when i want to turn in some bad DVD's i go to any ole DVD selling place and trade them in for store credit and buy other DVD's. point being is i don't look to sell anything on eBay that i can't trade in to get something else. it's instant gratification rather than waiting for checks to cash and such. Last edited by Anthony : 01-14-2005 at 09:47 AM.

01-14-2005, 08:13 AM	#4
Suicane75 Coordinator Join Date: Sep 2003 Location: NJ	I'm not angered or upset that they can do it, it's there right, i would never argue that. However, it's not just 20 cents. It's 20 cents insertion (heh, heh, heh). Plus added final cost %, plus more for buy it now. Lets put it this way, if i have something I wanna sell, and I only think it's gonna fetch me $5-$7, I would seriously consider just chucking it in the garbage or trying to give it away as my profit margin is gonna be cut into considerably enough that it isnt worth the hassle. Thats all i'm sayin.

01-14-2005, 08:40 AM	#5
Anthony Banned Join Date: Oct 2000 Location: Astoria, NY, USA	i can't stand people who think they can just sell all their junk online. these are the same people who think it's good to have yard sales because they, with their meaningless lives would actually have something of value. "profit margin" on junk that would fetch $5-$7? woof.

01-14-2005, 09:18 AM	#12
Anthony Banned Join Date: Oct 2000 Location: Astoria, NY, USA	you can get most decent DVD's like Office Space in the $10 bin at your local DVD seller. if i have to pay you $7 for a DVD + shipping and whatever make believe handling cost you add on to the shipping which would make it come out to just about $10 i'd be better off jsut going to the store and not risking dealing with a thief (not saying you're a thief, but my first thought when dealing with ebay sellers is that they're a theif and i'm taking a huge risk). and i don't get it - if you gotta spend $1 to make $7 - wouldn't you do it. isn't that what you would call a great return? if all i had to do to make $7 in life was spend $1 or less i'd do it every time. keep in mind you're selling junk (not to belittle your property). if your options are to throw it away for nothing or to pay under $1 to sell something for $7 not sure what your logic is here... ...unless the point is you're not being logical. at which case i'll move on.

01-14-2005, 09:35 AM	#13
Suicane75 Coordinator Join Date: Sep 2003 Location: NJ	I understand both your points, my only argument is that if my profit margin is gonna be low to begin with, am I gonna be more inclined to continue doing it with a price increase or less inclined, well thats a pretty easy answer, im gonna be less inclined. Thats the only point I have. And by the time I go to the store, pay paypal fees or go to the bank to cash the MO/Check, is it really worth it for $6? Not really to me it isn't. So, does anyone want my DVD of Office Space?

01-14-2005, 10:02 AM	#20
Anthony Banned Join Date: Oct 2000 Location: Astoria, NY, USA	huh...? you want schtick go watch the Three Stooges. i post what's on my mind. there's no QOTM in this board so i don't feel the need to write anything classic. not sure what your point is. i hope you don't get by a car.

01-15-2005, 10:49 AM	#27
Hates_Cakesniffers n00b Join Date: Nov 2004	Wow, talk about being totally misinformed. I'm reading my copy of the email and I see that these are the areas being increased: 1) Gallery fees. These are for extra pictures. I use a free photo hosting site for my extra pics. If you're using Gallery pics, you are not very smart. I have no issues with fools paying more. 2) Buy it Now Fees I don't use Buy it now. Stores do. See below. 3) 10 day duration The article is wrong in stating a ten day auction is 'standard'. Seven day is standard. That cost didn't change. Folks like us won't pay more. 4) The rest of the increases impact eBay stores and 'certain business and industrial categories,' and Motor Vehicles. Again, none of this impacts me or any ordinary eBay seller. When all is said and done, I see no increase in costs for people like us selling old games, books and toys as we always have. If I'm wrong, please point to the actual eBay announcement, not this flawed article, and show exactly where.

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