eBay Announces Major Fee Changes for Sellers, Stiffer PowerSeller Rating Criterial and Fee Discounts for PowerSellers

Changes include fee, PowerSeller Standards, Feedback and and announcement of more changes coming soon.
This morning at the 2008 eBay Forum in Washington, DC, Bill Cobb announced major fee changes and realignments in four areas of the eBay platform:

  • Lowering insertion fees for auction and fixed price listings across the board.
  • Balancing that change by adjusting some final value fees. (eBay will take a similar approach with Store Inventory Format listings)
  • Gallery (Formerly 35 cents) will be free and fees for Gallery Plus and Picture Pack will be reduced
  • Tiered pricing for Featured Plus
  • Higher requirements to reach and maintain PowerSeller Status coupled with fee discounts for PowerSellers

Lets look at the changes that will take affect on February 20th:
Most eBay Listing Fees will drop 5-cents.  As the starting value goes up, the discounts get a little better. This would seem to be a disappointment at first as sellers were hoping for a greater reduction, but remember that Gallery is now free. Since Gallery ($0.35) is used in 95% of all listings this is effectively a 40-cent reduction in listing fees on items that start under $25 and much better on those over $25.

Starting or Reserve Price Old Insertion Fee New Insertion Fee
$0.01 – $0.99 $0.20 $0.15
$1.00 – $9.99 $0.40 $0.35
$10.00 – $24.99 $0.60 $0.55
$25.00 – $49.99 $1.20 $1.00
$50.00 – $199.99 $2.40 $2.00
$200.00 – $499.99 $3.60 $3.00
$500.00 or more $4.80 $4.00

Fixed Price Listings will also drop a nickle on low priced items with larger savings on higher priced listings

Starting or Reserve Price Current Insertion Fee Insertion Fee (effective 02/20/2008)
$0.01 – $0.99 $0.20 N/A
$1.00 – $9.99 $0.40 $0.35
$10.00 – $24.99 $0.60 $0.55
$25.00 – $49.99 $1.20 $1.00
$50.00 – $199.99 $2.40 $2.00
$200.00 – $499.99 $3.60 $3.00
$500.00 or more $4.80 $4.00

eBay Store Listing Fees also drop slightly and 99-cent listings will disappear.

Starting or Reserve Price Old Insertion Fee Insertion Fee
$0.01 – $0.99 $0.05 N/A
$1.00 – $24.99 $0.05 $0.03
$25.00 – $199.99 $0.10 $0.05
Above $200.00 $0.10 $0.10

The “N/A” in the charts above reflects a new minimum start price for Fixed Price listings, Store Inventory listings and the Buy It Now feature.
Store Inventory and Fixed Price listings must have a starting price of at least $1.00. So effectively 99-cent listings are gone.
Final Value Fees will see a huge increase in the first tranche with lower increases on higher value items.

Closing Price Old Final Value Fee New Final Value Fee
Item not sold No fee No change
$0.01-$25.00 5.25% of the closing value 8.75% of the closing value
$25.01 – $1,000.00 5.25% of the initial $25.00, plus 3.25% of the remaining closing value balance ($25.01 to $1,000.00) 8.75% of the initial $25.00, plus 3.50% of the remaining closing value balance ($25.01 to $1,000.00)
Over $1,000.01 5.25% of the initial $25.00, plus 3.25% of the initial $25.00 – $1,000.00 plus 1.50% of the remaining closing value balance ($1,000.01 – closing value) 8.75% of the initial $25.00, plus 3.50% of the initial $25.00 – $1,000.00 plus 1.50% of the remaining closing value balance ($1,000.01 – closing value)

PowerSeller Fee Discounts will be based on Detailed Seller Ratings (the Star system).

  • If you are a PowerSeller and all four of your detailed seller ratings (DSRs) for the past 30 day period are 4.6 or higher, you qualify for a 5% discount on Final Value Fees
  • If you are a PowerSeller and all four of your detailed seller ratings (DSRs) for the past 30 day period are 4.8 or higher, you qualify for a 15% discount on Final Value Fees

There will be other benefits for PowerSellers as well:
eBay will give discounts and incentives for those who satisfy customers best. Sellers with the higher DSRs will get the following benefits.

  • More search exposure through Best Match
  • Increased protection for PowerSellers
    • PayPal will no longer require that PowerSellers ship to confirmed addresses for items sold on eBay. Every address in the PayPal system will be considered a confirmed address for PowerSellers.
    • For PowerSellers there will no longer be an annual $5,000 limit on seller protection…you’ll have unlimited protection coverage.
    • Also starting in February – seller protection will be extended to cover transactions with buyers in many markets around the world (instead of only to US, Canada and the UK). Now PowerSellers can sell with confidence to a much larger group of buyers.

Finally, the Unpaid Item Protection Program that refunds feature fees to PowerSellers in the event of an unpaid item will become a permanent benefit of the PowerSeller program. In addition to auction-style listings, eBay will also extend this protection to single-item fixed priced listings.
There are also major changes to the eBay Feedback System:

  • Buyers will only be able to receive positive Feedback.
  • Positive repeat customer Feedback will count and Feedback more than 12 months old won’t.
  • Negative and neutral Feedback left by the buyer will be removed for transactions in which a buyer doesn’t respond to the Unpaid Item (UPI) or if the member is suspended.

If you would like more details on how these changes may affect your business, eBay will host a Seller Webinar at 10:00 a.m. this Friday, February 1. You can link to the webinar and see other announcements on the eBay Announcement Board.

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