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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 Wed. December / 07 / 2022

First auction of California offshore wind leases held today - CalMatters
  1. First auction of California offshore wind leases held today  CalMatters
  2. California offshore wind sale ends first day with $400 mln in high bids  Reuters
  3. U.S. Opens First Auctions for California Offshore Wind Rights  The Wall Street Journal
  4. UPDATE 3-Bids soar at first-ever California offshore wind auction  Yahoo Finance
  5. Going, Going, Gone: Feds Hold First-ever Auction For California Offshore Wind Leases  LAist
  6. View Full Coverage on Google News

The state of New York auctions pandemic equipment that it no longer needs - NPR
The state of New York auctions pandemic equipment that it no longer needs  NPR

New York's pandemic preparedness equipment is up for auction - NPR
New York's pandemic preparedness equipment is up for auction  NPR

Carlisle Auctions Returns to Florida in February 2023 - Old Cars Weekly
Carlisle Auctions Returns to Florida in February 2023  Old Cars Weekly

December 9, 2002 Auction Calendar - Wisconsin State Farmer
December 9, 2002 Auction Calendar  Wisconsin State Farmer

Catch a Glimpse of The 2022 Holiday Auction (Wine & Spirit) - Yahoo Finance
Catch a Glimpse of The 2022 Holiday Auction (Wine & Spirit)  Yahoo Finance

Scorecard marking Michael Jordan’s 20,000th career point up for auction - NBC Sports
Scorecard marking Michael Jordan’s 20,000th career point up for auction  NBC Sports

Fewer buyers showing up to open homes, auctions - survey - 1News
Fewer buyers showing up to open homes, auctions - survey  1News

Greenville nonprofit auctions Taylor Swift tickets, hotel stay with $2.5K starting bid - Charleston Post Courier
Greenville nonprofit auctions Taylor Swift tickets, hotel stay with $2.5K starting bid  Charleston Post Courier

37 properties for sale in Chemung County real estate auction - WETM - MyTwinTiers.com
37 properties for sale in Chemung County real estate auction  WETM - MyTwinTiers.com

No Need to Calm Down: This Taylor Swift–Signed Guitar Is Now Up for Auction - Robb Report
No Need to Calm Down: This Taylor Swift–Signed Guitar Is Now Up for Auction  Robb Report

Online auctions to liquidate items of former Packwood House Museum in Lewisburg, Union County - WPMT FOX 43
Online auctions to liquidate items of former Packwood House Museum in Lewisburg, Union County  WPMT FOX 43

Mickey Mantle '52 Topps #311 Card Up For Auction, Expected To Fetch $1.5 Mil - TMZ
Mickey Mantle '52 Topps #311 Card Up For Auction, Expected To Fetch $1.5 Mil  TMZ

High-End Costume Jewelry Draws High-End Auction Prices - The New York Times
High-End Costume Jewelry Draws High-End Auction Prices  The New York Times

Mick Fleetwood’s iconic 'Rumours' wooden balls top auction, sell for $128,000 - Goldmine Magazine
Mick Fleetwood’s iconic 'Rumours' wooden balls top auction, sell for $128,000  Goldmine Magazine

Rare Civil War, WWI military items made by Tiffany & Co. to hit Illinois auction block - Fox News
Rare Civil War, WWI military items made by Tiffany & Co. to hit Illinois auction block  Fox News

Doyle Auctions - Online - Fine Books & Collections Magazine
Doyle Auctions - Online  Fine Books & Collections Magazine

Greenwald Gardens and Manor near Mukwonago to be sold at auction - BizTimes Milwaukee
Greenwald Gardens and Manor near Mukwonago to be sold at auction  BizTimes Milwaukee

RESULT OF RIKSBANK REVERSED AUCTIONS KOMMUNINVEST BONDS - GlobeNewswire
RESULT OF RIKSBANK REVERSED AUCTIONS KOMMUNINVEST BONDS  GlobeNewswire

Student 'slave auctions' illustrate the existence of a hidden culture of domination and subjugation in US schools - The Conversation
Student 'slave auctions' illustrate the existence of a hidden culture of domination and subjugation in US schools  The Conversation

Auction to help fund special operations at YMCA - timesobserver.com
Auction to help fund special operations at YMCA  timesobserver.com

Foreclosure auction scheduled for Hilton Minneapolis - The Business Journals
Foreclosure auction scheduled for Hilton Minneapolis  The Business Journals

Russian central bank raises over 3 trillion roubles at one-week deposit auction - Reuters
Russian central bank raises over 3 trillion roubles at one-week deposit auction  Reuters

James Bowie Autograph Pay Order Tops Heritage’s Texana Auction - Antiques and the Arts Online
James Bowie Autograph Pay Order Tops Heritage’s Texana Auction  Antiques and the Arts Online

First Day of California Offshore Wind Lease Auction Draws Strong Bids - The Maritime Executive
First Day of California Offshore Wind Lease Auction Draws Strong Bids  The Maritime Executive

Oak Court Mall to go up for auction at the end of the month - WATN - Local 24
Oak Court Mall to go up for auction at the end of the month  WATN - Local 24

How to Find The Best Estate Sales and Estate Liquidation Auctions in Central Florida - Digital Journal
How to Find The Best Estate Sales and Estate Liquidation Auctions in Central Florida  Digital Journal

HiBid Auctions Exceed $26M in Sales Over Thanksgiving Week; Christmas Shopping Continues with Seasonal Lots Now Open for Bidding - PR Newswire
HiBid Auctions Exceed $26M in Sales Over Thanksgiving Week; Christmas Shopping Continues with Seasonal Lots Now Open for Bidding  PR Newswire

Black Angus auctions restaurant art in Whittier on Dec. 5 - LA Daily News
Black Angus auctions restaurant art in Whittier on Dec. 5  LA Daily News

Standout Sales and Key Takeaways from New York’s November Auctions - Artsy
Standout Sales and Key Takeaways from New York’s November Auctions  Artsy

Auction set for 'one-of-a-kind' Wrightsville Beach home, priced at nearly $14M - Greater Wilmington Business Journal
Auction set for 'one-of-a-kind' Wrightsville Beach home, priced at nearly $14M  Greater Wilmington Business Journal

Buy, Sell, Hold: Spotlight #35 – Mike Oberle – Partner at MAG Auctions - Sports Car Market
Buy, Sell, Hold: Spotlight #35 – Mike Oberle – Partner at MAG Auctions  Sports Car Market

Children's Hospital LA Auctions Rare Ivan Reitman Ghostbusters Figure - Bleeding Cool News
Children's Hospital LA Auctions Rare Ivan Reitman Ghostbusters Figure  Bleeding Cool News

The State of Oregon Will Auction Off Dollars Dec. 5, Probably at a Discount - Willamette Week
The State of Oregon Will Auction Off Dollars Dec. 5, Probably at a Discount  Willamette Week

'Hiccup!' Spirits low after vodka brand auction runs dry - The San Diego Union-Tribune
'Hiccup!' Spirits low after vodka brand auction runs dry  The San Diego Union-Tribune

Shop With A Cop Re-Bid Auction Wednesday 9 a.m. - WTCA
Shop With A Cop Re-Bid Auction Wednesday 9 a.m.  WTCA

Spider-Man Meets The X-Men, Taking Bids At Heritage Auctions Today - Bleeding Cool News
Spider-Man Meets The X-Men, Taking Bids At Heritage Auctions Today  Bleeding Cool News

PHOTOS: Inside ‘stunning mountaintop mansion’ up for auction in Sevier County - WATE 6 On Your Side
PHOTOS: Inside ‘stunning mountaintop mansion’ up for auction in Sevier County  WATE 6 On Your Side

Rolling Stone Magazine Auctions Off A Pivotal Piece Of John Lennon History - The Blast
Rolling Stone Magazine Auctions Off A Pivotal Piece Of John Lennon History  The Blast

Babe Ruth baseball glove sells at auction for record $1.53 million - ESPN
Babe Ruth baseball glove sells at auction for record $1.53 million  ESPN

Board of Natural Resources Approves Auction of Benton County Parcel | WA - DNR - WA - DNR
Board of Natural Resources Approves Auction of Benton County Parcel | WA - DNR  WA - DNR

Is Selling on One Site Enough? The Auction Professor Weighs in - EcommerceBytes
Is Selling on One Site Enough? The Auction Professor Weighs in  EcommerceBytes

Chamber auction puts SCC scholarships in the hands of students - Commonwealth Journal's History
Chamber auction puts SCC scholarships in the hands of students  Commonwealth Journal's History

Winter Art Show & Giving Tree Silent Auction Saturday benefits Life Food Pantry - Loveland Magazine
Winter Art Show & Giving Tree Silent Auction Saturday benefits Life Food Pantry  Loveland Magazine

Blue Ridge Women in Agriculture celebrates third annual virtual auction - Watauga Democrat
Blue Ridge Women in Agriculture celebrates third annual virtual auction  Watauga Democrat

‘Classic Hollywood’ items headed to December auction in Los Angeles - KTLA Los Angeles
‘Classic Hollywood’ items headed to December auction in Los Angeles  KTLA Los Angeles

4 Typical Mistakes At A Car Auction And How To Avoid Them? • Thumbwind - Thumbwind - Finding Fun In Michigan
4 Typical Mistakes At A Car Auction And How To Avoid Them? • Thumbwind  Thumbwind - Finding Fun In Michigan

Veteran Advocates of Ore-Ida auction, gift-wrapping is underway - Ontario Argus Observer
Veteran Advocates of Ore-Ida auction, gift-wrapping is underway  Ontario Argus Observer

Steve Jobs' worn-out Birkenstocks sell for $218000 at auction - NPR
Steve Jobs' worn-out Birkenstocks sell for $218000 at auction  NPR

Swetsville Zoo places collection on auction website – BizWest - BizWest
Swetsville Zoo places collection on auction website – BizWest  BizWest

EEX exchange to host German carbon auctions for another 3 years - Reuters
EEX exchange to host German carbon auctions for another 3 years  Reuters

Christie’s Auctions Reach US$422 Million Amid More Signs of Market Softness - Barron's
Christie’s Auctions Reach US$422 Million Amid More Signs of Market Softness  Barron's

Writer Joan Didion's possessions sell for eye-popping prices at auction - NPR
Writer Joan Didion's possessions sell for eye-popping prices at auction  NPR

HiBid Auctions Exceed $48 Million in Sales Last Week, with Huge Antique and Vehicle Auctions Now Open for Bidding - PR Newswire
HiBid Auctions Exceed $48 Million in Sales Last Week, with Huge Antique and Vehicle Auctions Now Open for Bidding  PR Newswire

Christie’s Pulls T. Rex From Auction, Citing Need for ‘Further Study’ - The New York Times
Christie’s Pulls T. Rex From Auction, Citing Need for ‘Further Study’  The New York Times

Numbed Treasury Market Takes an Ugly 10-Year Auction in Stride - Bloomberg
Numbed Treasury Market Takes an Ugly 10-Year Auction in Stride  Bloomberg

Xpansiv Launches CBL Auctions to Provide a Transparent, Efficient, Fair Platform for Scaling Carbon Credit Transactions - Business Wire
Xpansiv Launches CBL Auctions to Provide a Transparent, Efficient, Fair Platform for Scaling Carbon Credit Transactions  Business Wire

'Most valuable jeans': Gold Rush shipwreck up for auction - SFGATE
'Most valuable jeans': Gold Rush shipwreck up for auction  SFGATE

Auction spurs floating wind farms in U.S. waters - Finance and Commerce
Auction spurs floating wind farms in U.S. waters  Finance and Commerce

E-auction for RCap later this month; base bid at ₹5,231 crore - Economic Times
E-auction for RCap later this month; base bid at ₹5,231 crore  Economic Times

These Watch Auctions from Sotheby’s, Christie’s, and Phillips Might Help You Stop Staring at Your Phone - artnet News
These Watch Auctions from Sotheby’s, Christie’s, and Phillips Might Help You Stop Staring at Your Phone  artnet News

Hundreds of Swetsville Zoo items go up for auction as land sale looms - Coloradoan
Hundreds of Swetsville Zoo items go up for auction as land sale looms  Coloradoan

West San Jose office building faces the auction block - The Real Deal
West San Jose office building faces the auction block  The Real Deal

T. rex skull could sell for $20 million at auction - CNN
T. rex skull could sell for $20 million at auction  CNN

Classic cars take over Las Vegas for auction — PHOTOS - Las Vegas Review-Journal
Classic cars take over Las Vegas for auction — PHOTOS  Las Vegas Review-Journal

Roger Smith Series 2 headlines Bonhams Fine Watches auction - WatchPro USA
Roger Smith Series 2 headlines Bonhams Fine Watches auction  WatchPro USA

Quincy Jones, Alan Jackson, Many More Donate Rare Items To ASCAP Auction - uDiscover Music
Quincy Jones, Alan Jackson, Many More Donate Rare Items To ASCAP Auction  uDiscover Music

Michigan Department of Treasury to auction off unclaimed items - Detroit Free Press
Michigan Department of Treasury to auction off unclaimed items  Detroit Free Press

Vestal seniors to host holiday wreath auction - WIVT - NewsChannel 34
Vestal seniors to host holiday wreath auction  WIVT - NewsChannel 34

IRS Auctions: What happens to property seized by the IRS? - Marca English
IRS Auctions: What happens to property seized by the IRS?  Marca English

'Star Trek's' 1st-ever comic sells for record price at auction - Fox Business
'Star Trek's' 1st-ever comic sells for record price at auction  Fox Business

Heavenly Results For Celestial Indicator At Bonhams Skinner Online Auction - Antiques and the Arts Online
Heavenly Results For Celestial Indicator At Bonhams Skinner Online Auction  Antiques and the Arts Online

AUCTION: Turbocharged 2004 Ram SRT-10 VCA Edition. - Mopar Insiders
AUCTION: Turbocharged 2004 Ram SRT-10 VCA Edition.  Mopar Insiders

A Renowned Archaeologist Is Calling on Sotheby’s to Withdraw Potentially Looted Antiquities From Its Auction - artnet News
A Renowned Archaeologist Is Calling on Sotheby’s to Withdraw Potentially Looted Antiquities From Its Auction  artnet News

Shreveport holding surplus auction on Dec. 1 - KSLA
Shreveport holding surplus auction on Dec. 1  KSLA

Get Holiday Deals During Our Stocking Stuffer Auctions Weekdays at Noon - Heart of the Rockies Radio
Get Holiday Deals During Our Stocking Stuffer Auctions Weekdays at Noon  Heart of the Rockies Radio

Lions Christmas Auction raises record amount for holiday baskets to the needy, other causes – SWARK Today - SWARK Today
Lions Christmas Auction raises record amount for holiday baskets to the needy, other causes – SWARK Today  SWARK Today

Auction Calendar - November 11, 2022 - AgUpdate
Auction Calendar - November 11, 2022  AgUpdate

Opinion | Your gift guide to the General Services Administration auction website - The Washington Post
Opinion | Your gift guide to the General Services Administration auction website  The Washington Post

Orrville's annual online auction features bicycles, unclaimed items - Wooster Daily Record
Orrville's annual online auction features bicycles, unclaimed items  Wooster Daily Record

IPL Auctions 2023: KKR retained and released players - Business Upturn
IPL Auctions 2023: KKR retained and released players  Business Upturn

Bellebrations virtual auction to raise money in memory of Bella Pape - Greater Milwaukee Today | GMToday.com
Bellebrations virtual auction to raise money in memory of Bella Pape  Greater Milwaukee Today | GMToday.com

Farm auctions in Indiana and Ohio demonstrate versatility of Schrader auctions - Agri-News
Farm auctions in Indiana and Ohio demonstrate versatility of Schrader auctions  Agri-News

Clark Fork Watershed Education Program holds virtual auction to benefit youth science - NBC Montana
Clark Fork Watershed Education Program holds virtual auction to benefit youth science  NBC Montana

eBay Motors Auctions One-of-a-Kind Vehicles Collected from a Nationwide Road Trip of America's Hottest Car Cultures - PR Newswire
eBay Motors Auctions One-of-a-Kind Vehicles Collected from a Nationwide Road Trip of America's Hottest Car Cultures  PR Newswire

STORAGE AUCTIONS - Columbia Star
STORAGE AUCTIONS  Columbia Star

Silent auction for MLK scholarships Dec. 10 | Education | gainesvilleregister.com - Gainesville Daily Register
Silent auction for MLK scholarships Dec. 10 | Education | gainesvilleregister.com  Gainesville Daily Register

Time capsule of automotive history set for auction in Tampa - FOX 13 Tampa
Time capsule of automotive history set for auction in Tampa  FOX 13 Tampa

Mitzi Perdue Will Auction Off Emerald Engagement Ring To Help Ukrainian Citizens - WBOC TV 16
Mitzi Perdue Will Auction Off Emerald Engagement Ring To Help Ukrainian Citizens  WBOC TV 16

The Richest Art Auction Season in History Continues This Week - Bloomberg
The Richest Art Auction Season in History Continues This Week  Bloomberg

Russian rouble firms ahead of three OFZ bond auctions - Reuters
Russian rouble firms ahead of three OFZ bond auctions  Reuters

Patti Wong, the Queen of Auction, to leave Sotheby's after 30 years of service | Auctions News - TheValue.com
Patti Wong, the Queen of Auction, to leave Sotheby's after 30 years of service | Auctions News  TheValue.com

Operation Homefront presents Cornerstone Awards to Ali Haralson of Auction.com and Len McMorrow of U.S. Bank - Yahoo Finance
Operation Homefront presents Cornerstone Awards to Ali Haralson of Auction.com and Len McMorrow of U.S. Bank  Yahoo Finance

Lubbock Auto Auction Charity Foundation to host 2022 check presentation - KCBD
Lubbock Auto Auction Charity Foundation to host 2022 check presentation  KCBD

Final Ringling Bros. circus train cars owned by NCDOT auctioned off - WCNC.com
Final Ringling Bros. circus train cars owned by NCDOT auctioned off  WCNC.com

Russian rouble trades near 61 vs dollar ahead of OFZ auctions - Nasdaq
Russian rouble trades near 61 vs dollar ahead of OFZ auctions  Nasdaq

Matt Copson's Arnold & Son Spiderweb Watch Is up for Auction at Phillips New York TimeForArt - HYPEBEAST
Matt Copson's Arnold & Son Spiderweb Watch Is up for Auction at Phillips New York TimeForArt  HYPEBEAST

RHOBH star Erika Jayne’s 6-carat diamond earrings ‘could fetch $350K at auction’ amid ex-husband’s bankrup... - The US Sun
RHOBH star Erika Jayne’s 6-carat diamond earrings ‘could fetch $350K at auction’ amid ex-husband’s bankrup...  The US Sun

NYS to Auction More than 1,300 Surplus Items from Decommissioned COVID-19 Care Facilities - Norwood News
NYS to Auction More than 1,300 Surplus Items from Decommissioned COVID-19 Care Facilities  Norwood News

Auction Archives • Thumbwind - Thumbwind - Finding Fun In Michigan
Auction Archives • Thumbwind  Thumbwind - Finding Fun In Michigan

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