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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


TODAYS NEWS BY OFFICEJAX FREE ADVERTISING AND AD EXCHANGE SOLUTIONSMORE RESOURCES updated Sun. July / 12 / 2020

Auctions Are Crimped as the Pandemic Forces Them Online - The New York Times
Auctions Are Crimped as the Pandemic Forces Them Online  The New York Times

Dallas-based Heritage Auctions sells vintage Super Mario video game for $114,000 - The Dallas Morning News
Dallas-based Heritage Auctions sells vintage Super Mario video game for $114,000  The Dallas Morning News

Christie’s New Auction Technique: The Global Gavel - The New York Times
Christie’s New Auction Technique: The Global Gavel  The New York Times

Notes: Namath Rookie Jersey, Pujols Memorabilia Auctions; PSA Backlog Update, Show... - Sports Collectors Daily
Notes: Namath Rookie Jersey, Pujols Memorabilia Auctions; PSA Backlog Update, Show...  Sports Collectors Daily

Hedge fund Chatham wins bankruptcy auction for McClatchy's newspapers - Fox Business
Hedge fund Chatham wins bankruptcy auction for McClatchy's newspapers  Fox Business

KROX CRAZY DAYS AUCTIONS WILL BE JULY 16 AT 9:30 AM AND 5:00 PM - kroxam.com
KROX CRAZY DAYS AUCTIONS WILL BE JULY 16 AT 9:30 AM AND 5:00 PM  kroxam.com

Annual Grand Forks Police auction opens for online bidding - Grand Forks Herald
Annual Grand Forks Police auction opens for online bidding  Grand Forks Herald

Preview: RM Sotheby’s Online Open Roads Auction - RACER
Preview: RM Sotheby’s Online Open Roads Auction  RACER

Space Suit From ‘2001: A Space Odyssey’ Heads to Auction, Sale Could Spike to $300,000 - IndieWire
Space Suit From ‘2001: A Space Odyssey’ Heads to Auction, Sale Could Spike to $300,000  IndieWire

Live Mecum Auction returns to Indianapolis with 2,500 Collector Cars - Fox 59
Live Mecum Auction returns to Indianapolis with 2,500 Collector Cars  Fox 59

Phillips Restarts Live Auctions With Record Results for Titus Kaphar and Christina Quarles, Notable Debut for Otis Kwame Kye Quaicoe - Culture Type
Phillips Restarts Live Auctions With Record Results for Titus Kaphar and Christina Quarles, Notable Debut for Otis Kwame Kye Quaicoe  Culture Type

33rd Mecum Auctions kicks off with new safety rules amid COVID-19 pandemic - WISHTV.com
33rd Mecum Auctions kicks off with new safety rules amid COVID-19 pandemic  WISHTV.com

Editorial: Fair livestock auctions can make summer special for youth - Albany Democrat Herald
Editorial: Fair livestock auctions can make summer special for youth  Albany Democrat Herald

Letter, 7/12: Keep auto auction live, local - Lincoln Journal Star
Letter, 7/12: Keep auto auction live, local  Lincoln Journal Star

A property auction is coming to America’s wealthiest ZIP code —a first - Yahoo Finance
A property auction is coming to America’s wealthiest ZIP code —a first  Yahoo Finance

Auction Report: A Rare Rolex Daytona Fetches $3.27 Million At Sotheby's Hong Kong Auction - HODINKEE
Auction Report: A Rare Rolex Daytona Fetches $3.27 Million At Sotheby's Hong Kong Auction  HODINKEE

Max Holloway posts video about auction to benefit Hawaii Foodbank following UFC 251 loss - KHON2
Max Holloway posts video about auction to benefit Hawaii Foodbank following UFC 251 loss  KHON2

Auction offers hidden treasures | News - Independent-Messenger
Auction offers hidden treasures | News  Independent-Messenger

Greenwich mansion owned by shoe mogul Camuto to sell at auction - Crain's New York Business
Greenwich mansion owned by shoe mogul Camuto to sell at auction  Crain's New York Business

12 more Manheim auctions to start piloting in-lane bidding this week - Auto Remarketing
12 more Manheim auctions to start piloting in-lane bidding this week  Auto Remarketing

Josh Gordon's Super Bowl ring is headed for auction - Patriots Wire
Josh Gordon's Super Bowl ring is headed for auction  Patriots Wire

NOTICE OF AUCTION IN ACCORDANCE | Legal Announcements - Maryville Daily Times
NOTICE OF AUCTION IN ACCORDANCE | Legal Announcements  Maryville Daily Times

RavnAir cancels auction for remaining planes, calling rural hub service into question - Alaska Public Media News
RavnAir cancels auction for remaining planes, calling rural hub service into question  Alaska Public Media News

1986-87 Fleer Basketball Sealed Case Hitting the Auction Block, Could Top $1 Million - Beckett Media, LLC
1986-87 Fleer Basketball Sealed Case Hitting the Auction Block, Could Top $1 Million  Beckett Media, LLC

Crop shortfall leads to higher tea prices at auctions - Deccan Herald
Crop shortfall leads to higher tea prices at auctions  Deccan Herald

Founder of O'Neill brand's Santa Cruz area estate up for auction - SFGate
Founder of O'Neill brand's Santa Cruz area estate up for auction  SFGate

Summer Christmas: Toy N Joy Auction | News | thechronicleonline.com - St. Helens Chronicle
Summer Christmas: Toy N Joy Auction | News | thechronicleonline.com  St. Helens Chronicle

Pa. will try its luck again in mini-casino license auction - PennLive
Pa. will try its luck again in mini-casino license auction  PennLive

Josh Gordon’s Super Bowl ring is up for auction - Boston.com
Josh Gordon’s Super Bowl ring is up for auction  Boston.com

Disputed African Artifacts Sell at Auction - The New York Times
Disputed African Artifacts Sell at Auction  The New York Times

BDA auctions listed 166 corner sites across Bengaluru - Deccan Herald
BDA auctions listed 166 corner sites across Bengaluru  Deccan Herald

Rare Star Wars ESB Birthday Card Art On Auction At Heritage Right Now - Bleeding Cool News
Rare Star Wars ESB Birthday Card Art On Auction At Heritage Right Now  Bleeding Cool News

Live Jewelry Auctions To Return, But Online Sales Will Persist - pymnts.com
Live Jewelry Auctions To Return, But Online Sales Will Persist  pymnts.com

Tips to Use Online Auctions to Find Used Car Inventory - http://cbtnews.com/
Tips to Use Online Auctions to Find Used Car Inventory  http://cbtnews.com/

Art World Awaits Live-Streamed New York Auctions - Barron's
Art World Awaits Live-Streamed New York Auctions  Barron's

28-Carat D-Color Diamond Sets Online Auction Record Of $2.1 Million - Forbes
28-Carat D-Color Diamond Sets Online Auction Record Of $2.1 Million  Forbes

Katharine Hepburn's love letters to Howard Hughes up for auction - The Jakarta Post - Jakarta Post
Katharine Hepburn's love letters to Howard Hughes up for auction - The Jakarta Post  Jakarta Post

Bangalore Development Authority auctions 85% of the listed corner sites - Deccan Herald
Bangalore Development Authority auctions 85% of the listed corner sites  Deccan Herald

Ritchie Bros. set to sell 35,000+ items in its biggest auction week ever - PRNewswire
Ritchie Bros. set to sell 35,000+ items in its biggest auction week ever  PRNewswire

Alaska's largest rural airline will go on the auction block Tuesday - Alaska Public Media News
Alaska's largest rural airline will go on the auction block Tuesday  Alaska Public Media News

Household.HiBid.com: A Dedicated Site for Auctions Featuring Furniture, Housewares & Other Household Goods - Yahoo Finance
Household.HiBid.com: A Dedicated Site for Auctions Featuring Furniture, Housewares & Other Household Goods  Yahoo Finance

Park Avenue Numismatics Internet Auctions to Launch July 2020 - CoinWeek
Park Avenue Numismatics Internet Auctions to Launch July 2020  CoinWeek

Kurt Cobain’s ‘MTV Unplugged’ Guitar Sells for $6 Million at Auction - Rolling Stone
Kurt Cobain’s ‘MTV Unplugged’ Guitar Sells for $6 Million at Auction  Rolling Stone

McClatchy Says Chatham Asset Management Wins Auction Bid - BNN
McClatchy Says Chatham Asset Management Wins Auction Bid  BNN

Historic space exploration artifacts launch for sale at RR Auction [Sponsored] - collectSPACE.com
Historic space exploration artifacts launch for sale at RR Auction [Sponsored]  collectSPACE.com

GF Police Auction to be held online - knoxradio
GF Police Auction to be held online  knoxradio

Ming Dynasty encyclopedia sells for more than $9 million at auction -- 1,000 times the expected price - CNN
Ming Dynasty encyclopedia sells for more than $9 million at auction -- 1,000 times the expected price  CNN

Jul 17 | 2020 Great Bay Plein Air Art Auction | Portsmouth, NH Patch - Patch.com
Jul 17 | 2020 Great Bay Plein Air Art Auction | Portsmouth, NH Patch  Patch.com

Censored Michael Turner Superman/Batman Page For Auction At Heritage - Bleeding Cool News
Censored Michael Turner Superman/Batman Page For Auction At Heritage  Bleeding Cool News

Albrecht-Kemper to host Pot of Gold online auction - The Maryville Forum
Albrecht-Kemper to host Pot of Gold online auction  The Maryville Forum

Greenwich Mansion Owned by Shoe Mogul Vince Camuto to Sell at Auction - Bloomberg
Greenwich Mansion Owned by Shoe Mogul Vince Camuto to Sell at Auction  Bloomberg

Art auction sales the slowest in 22 years as coronavirus sidelines sellers and buyers - ABC News
Art auction sales the slowest in 22 years as coronavirus sidelines sellers and buyers  ABC News

Positive COVID-19 test for person who attended Seneca Co. pony auction - 13WHAM-TV
Positive COVID-19 test for person who attended Seneca Co. pony auction  13WHAM-TV

4-H students participate in auction in Independence - KCRG
4-H students participate in auction in Independence  KCRG

Silver Lakes Resort in Helendale to be Sold in Bankruptcy Auction - VVNG.com
Silver Lakes Resort in Helendale to be Sold in Bankruptcy Auction  VVNG.com

Santa Monica's Pacific Dining Car Auctions Assets as Restaurant Shuts Down - Hollywood Reporter
Santa Monica's Pacific Dining Car Auctions Assets as Restaurant Shuts Down  Hollywood Reporter

Online Silent Auctions Market Size By Product Analysis, Application, End-Users, Regional Outlook, Competitive Strategies And Forecast Up To 2026 - 3rd Watch News
Online Silent Auctions Market Size By Product Analysis, Application, End-Users, Regional Outlook, Competitive Strategies And Forecast Up To 2026  3rd Watch News

Paul's Italian restaurant closes for good; auction planned for Friday. - Winston-Salem Journal
Paul's Italian restaurant closes for good; auction planned for Friday.  Winston-Salem Journal

Entrepreneurs Top Sycamore In Pier 1 Bankruptcy Auction - Wall Street Journal
Entrepreneurs Top Sycamore In Pier 1 Bankruptcy Auction  Wall Street Journal

Art Auction or Game Show? Sotheby’s Tries Something New - The New York Times
Art Auction or Game Show? Sotheby’s Tries Something New  The New York Times

100000-plus auction sales for 3 straight weeks - Auto Remarketing
100000-plus auction sales for 3 straight weeks  Auto Remarketing

Student art auction a huge success for Animal Harbor - Winchester Herald Chronicle
Student art auction a huge success for Animal Harbor  Winchester Herald Chronicle

Yields on gov't securities drop on auctions - BusinessWorld Online
Yields on gov't securities drop on auctions  BusinessWorld Online

Sky high Flagstaff Ballroom attracts $1.425 million top bid in auction - Morning Call
Sky high Flagstaff Ballroom attracts $1.425 million top bid in auction  Morning Call

Nearly $28M in Assets Sold Through HiBid.com Last Week; Coins, Office Supplies & More for Sale in Upcoming Auctions - PRNewswire
Nearly $28M in Assets Sold Through HiBid.com Last Week; Coins, Office Supplies & More for Sale in Upcoming Auctions  PRNewswire

Online Sales the New Norm for Local Auctions - PembinaValleyOnline.com
Online Sales the New Norm for Local Auctions  PembinaValleyOnline.com

Ancient, World Coin Heritage Signature Auction Open for Bidding Soon - CoinWeek
Ancient, World Coin Heritage Signature Auction Open for Bidding Soon  CoinWeek

Former LA Ram to auction Chatsworth home with no reserve - The Real Deal
Former LA Ram to auction Chatsworth home with no reserve  The Real Deal

Hottest Prizm Basketball Card Auctions as Now Familiar Brand Cements... - Sports Collectors Daily
Hottest Prizm Basketball Card Auctions as Now Familiar Brand Cements...  Sports Collectors Daily

Christie's global online auction raises $421 mln, sets new record - CGTN
Christie's global online auction raises $421 mln, sets new record  CGTN

Josh Gordon's Super Bowl ring with Pats up for auction - Comcast SportsNet New England
Josh Gordon's Super Bowl ring with Pats up for auction  Comcast SportsNet New England

More good signs for auto auction sales volume - Auto Remarketing
More good signs for auto auction sales volume  Auto Remarketing

Fair livestock auction plans released - Seymour Tribune
Fair livestock auction plans released  Seymour Tribune

Auction for Ravn Air Group continues Wednesday - KTVA
Auction for Ravn Air Group continues Wednesday  KTVA

2 Rutherford County-owned buildings on Murfreesboro square to go up for auction - Daily News Journal
2 Rutherford County-owned buildings on Murfreesboro square to go up for auction  Daily News Journal

HiBid.com Reports Record Auction Total and Over $32M in Assets Sold Last Week; Coins, Restaurant Equipment & More for Sale in Current Auctions - PRNewswire
HiBid.com Reports Record Auction Total and Over $32M in Assets Sold Last Week; Coins, Restaurant Equipment & More for Sale in Current Auctions  PRNewswire

Carbon County landmark with celebrated past on auction block Tuesday - Morning Call
Carbon County landmark with celebrated past on auction block Tuesday  Morning Call

With a record number of bidders, CBRS auction estimates rise to $10B - Light Reading
With a record number of bidders, CBRS auction estimates rise to $10B  Light Reading

2020 Fantasy Baseball Mock Draft: 12-team Rotisserie auction for the 60-game season - CBS Sports
2020 Fantasy Baseball Mock Draft: 12-team Rotisserie auction for the 60-game season  CBS Sports

Over $300-thousand Raised Thus Far During Fair Virtual Auction - MyMotherLode.com
Over $300-thousand Raised Thus Far During Fair Virtual Auction  MyMotherLode.com

Memorabilia, décor and more from Home of the Brave up for auction - Pacific Business News (Honolulu)
Memorabilia, décor and more from Home of the Brave up for auction  Pacific Business News (Honolulu)

Judge blocks auction of Abigail Kawananakoa's belongings - Honolulu Star-Advertiser
Judge blocks auction of Abigail Kawananakoa's belongings  Honolulu Star-Advertiser

Auctions offer companies a reliable way to liquidate assets - Smart Business Network
Auctions offer companies a reliable way to liquidate assets  Smart Business Network

Mecum's Gone Farmin' auction hits 95 percent sell-through - The ClassicCars.com Journal
Mecum's Gone Farmin' auction hits 95 percent sell-through  The ClassicCars.com Journal

Former restaurant up for auction Sunday - tnonline.com
Former restaurant up for auction Sunday  tnonline.com

Spanning four cities and four hours, Christie's virtual auction brings in $420m in sales - The National
Spanning four cities and four hours, Christie's virtual auction brings in $420m in sales  The National

Auction at Kay Rodgers Park - Times Record
Auction at Kay Rodgers Park  Times Record

Christie's auctions off 28.86-carat diamond for over $2 million - Business Insider - Business Insider
Christie's auctions off 28.86-carat diamond for over $2 million - Business Insider  Business Insider

Mount Vernon church auction gets bidders but no buyer - Baltimore Fishbowl
Mount Vernon church auction gets bidders but no buyer  Baltimore Fishbowl

Paramount Triggers UCC Auction on Kushner's Times Square Retail Condo - Commercial Observer
Paramount Triggers UCC Auction on Kushner's Times Square Retail Condo  Commercial Observer

Copart: The King Of Auto Auctions - Seeking Alpha
Copart: The King Of Auto Auctions  Seeking Alpha

Ultra-Rare LeBron James Card Hits Auction Block, Expected To Sell For $1 MILLION - TMZ
Ultra-Rare LeBron James Card Hits Auction Block, Expected To Sell For $1 MILLION  TMZ

Auto-auction firm proposes new use for site of Atco Dragway - Burlington County Times
Auto-auction firm proposes new use for site of Atco Dragway  Burlington County Times

Auction-Farm Equipment-Pony drawn carts June 27th at 10 am. Robert - NNY360
Auction-Farm Equipment-Pony drawn carts June 27th at 10 am. Robert  NNY360

Extremely Rare Pokemon Card Sells at Auction for $90,000 - GameRant
Extremely Rare Pokemon Card Sells at Auction for $90,000  GameRant

Ransomware Gang Auctions Off US Healthcare Data for Bitcoin - Cointelegraph
Ransomware Gang Auctions Off US Healthcare Data for Bitcoin  Cointelegraph

Iconic Prince Guitar, Once Considered Lost, Sold For Over $500,000 At Auction - CBS Pittsburgh
Iconic Prince Guitar, Once Considered Lost, Sold For Over $500,000 At Auction  CBS Pittsburgh

Live Like Roo Hosting Online Auction For Pets With Cancer - Block Club Chicago
Live Like Roo Hosting Online Auction For Pets With Cancer  Block Club Chicago

Preliminary clearance rate shows 62.2 per cent of homes sold at auction - Elite Agent
Preliminary clearance rate shows 62.2 per cent of homes sold at auction  Elite Agent

Convict love token far exceeds estimate in London auction - Coin World
Convict love token far exceeds estimate in London auction  Coin World

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