EBay Fee Changes and Why You Might Need an eBay Store

October 29, 2014

Marketplaces ChannelAdvisor By ChannelAdvisor

Fall is officially here. Leaves are changing, and so are select eBay fees. We should expect this kind of change by now, shouldn’t we?

What’s more, we should also expect marketplaces to make policies that direct us toward the paths they want us to take. That’s exactly what happened in a recent eBay announcement: Caps on final value fees will increase for US sellers that don’t have an eBay Store. Final value fees, which are paid on the total selling price of each item (shipping included) for non-Store sellers will now be capped at $750 — up from $250. This change will go into effect on November 6, 2014.

The published final value fee for a non-Store seller is 10%. This means that the increase in the cap on the final value fee will really only affect items from non-Store sellers that total more than $2,500, including shipping costs. Here are some likely categories where total price may be over this threshold:

  • Business and industrial

  • Automotive and Powersports: Parts and accessories

  • Fine art and collectibles

  • Antiques

  • Fine jewelry and watches

  • High-end consumer electronics and cameras

  • Computers

  • Furniture

  • High-end sporting goods

  • Sports and entertainment memorabilia

  • Travel

Note that this change is only for non-Store sellers. Which leads to the question, Why is eBay so interested in increasing Store membership? Could it be the revenue stream from Store fees? Or will this bolster seller brands on the heels of the global brand campaign eBay is running? It could also just be about increasing a seller’s effectiveness since Store sellers have access to tools that provide insight into buyer behavior and trends (traffic reports within the Manage My Store interface).

There are three eBay Store types, and all qualify for an exemption to this fee increase: Basic Store, Premium Store and Anchor Store. Store fees range from $15.95 per month to $199.95 per month, depending on the type of Store selected and the subscription period (monthly vs. yearly). With the three Store types, you can also buy down your insertion fees (ranging from $0.20 with Basic to $0.05 with Anchor) and increase your free insertion fee listings (from 150 with Basic to 2,500 with Anchor). In essence, the more volume you do, the more advantageous it is to go with an Anchor Store.

If you don’t have a Store yet and might be affected by this increase in the final value fee cap, or if you want to ensure you aren’t better off with a Store subscription due to the insertion fee discounts and free listing allotment, then you can check out this free tool from eBay: eBay’s Fee Illustrator. This tool gets information about your average listings, sell-through and sales price to compare fee models from the different Store types.

It’s also worth noting that if you have a have a below-standard performance rating as defined by seller performance standards, your only Store option is the Basic Store.

What Other Changes Did EBay Make?

Also within this announcement were a few changes to how free, automatic relistings work. First, automatic relistings will count toward the free listing allotments for sellers (remember, this allotment is different depending on Store membership). Second, later this year eBay will remove the relisting option for one- and three-day duration listings. Third, if you’re using the automatic relisting feature, after November 6 the system will relist items up to two times instead of once, like before. If you are a ChannelAdvisor customer, we manage the relisting process for your, so the last two changes will not impact you. These changes lessen the benefits sellers receive from Store membership but will affect all sellers, regardless of Store membership, so you still may come out ahead with a Store membership.

If you’re in the UK, you may have noticed changes to relists back on October 6, when eBay reduced the number of times that a listing was relisted when it used Auto Relist. EBay changed this from three relists down to one.

So what do you think about these eBay final value fee changes? Is eBay continuing to move its selling strategies toward those of other online marketplaces, like Amazon, which don’t have any fee caps? Let us know what you think below.

 

Blog post by Rachel Miller, product marketing manager, ChannelAdvisor