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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 Sat. May / 21 / 2022

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Inside the Wild West Auction for Ernie Barnes’s ‘The Sugar Shack’  Vanity Fair

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These Are the 10 Most Expensive Cars Ever Sold at Auction  Jalopnik

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How Auctions Identify the Next Big Artists and Trends  Artsy

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Powers to hold rental auctions and let vacant high street space  JD Supra

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Controversial Tom Brady 1-of-1 Fleer Showcase Rookie Card Auctions for $396K  Bleacher Report

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STORAGE AUCTIONS  Columbia Star

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IndyCars, pace cars part of display for Mecum auction at state fairgrounds  FOX 59 Indianapolis

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Prince Robert de Luxembourg Auctions Wines Straight from Haut-Brion's Cellars  Wine Spectator

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10 most expensive Disneyland items in auction featuring 1,500 theme park collectibles  Silicon Valley

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Apple takes on data brokers and auctions with new ‘Privacy on iPhone’ ad campaign  9to5Mac

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Willis Reed’s iconic Knicks NBA Finals warm-up jacket up for auction  Empire Sports Media

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Auction sets new record  The County

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Kosovo* plans to launch auctions for 100 MW of solar  Balkan Green Energy News

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Iconic Dinkel's Neon Sign Set To Hit the Auction Block  WTTW News

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This flashy Bel Air mansion that was listed at $87.8 million flopped at auction — and now the seller is furious  CNBC

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Iconic 'Hope' portrait of Obama sells at auction for $735000  Chicago Tribune

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WATCH LIVE! Brisbane auctions to watch this weekend  Courier Mail

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Game On: Wata, Heritage Auctions face lawsuit for allegedly manipulating cost of retro games  The Spokesman Review

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Iris van Herpen Auctions Met Gala Dresses with Bonhams: What to Know  WWD

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New York City Eliminates the Rules That Govern Art and Other Auctions  The New York Times

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Artworks by Sam Gilliam and Victor Vasarely will be in Neue Auctions' online May Modern sale, May 28  ArtfixDaily

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Clark County hosting series of surplus auctions this week  News3LV

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Join the Romance for Reproductive Justice Auction This Weekend  Book Riot

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Jose Canseco's car? A 'Happy Gilmore' VHS tape? A Betty White signed baseball? Auctions aren't just for T206 Honus Wagner cards  ESPN

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Westlake Financial Remarketing Division Announces 2021 Auctions of the Year  Business Wire

MLJ's Answer to the Human Torch, Fireball in Pep Comics #12 at Auction - Bleeding Cool News
MLJ's Answer to the Human Torch, Fireball in Pep Comics #12 at Auction  Bleeding Cool News

Getlink: ElecLink Goes Live and Looks Forward to Its First Auctions - Business Wire
Getlink: ElecLink Goes Live and Looks Forward to Its First Auctions  Business Wire

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RESULT OF RIKSBANK REVERSED AUCTIONS SEK GOVERNMENT BONDS  GlobeNewswire

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Inside Getty beauty’s rare $1.5 million gem collection headed for auction  New York Post

In these squeezed items, auction of surplus vehicles draws attention - Concord Monitor
In these squeezed items, auction of surplus vehicles draws attention  Concord Monitor

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Heritage Auctions’ Numismatic Sales Past $65 Million  Antiques and the Arts Online

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Sponsor spotlight: Clothes For Kids online auction to support local students  My Edmonds News

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Concierge Auctions Announces May/June Auction Lineup of over $100 Million in Properties—Most No Reserve  EIN News

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THREE BIG IOWA AUCTIONS the next three Saturdays with All Auctions Inc | Paid Content  Local 5 - weareiowa.com

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The Strange Saga of the Black Knight in Zip Comics #2, at Auction  Bleeding Cool News

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Public Invited to On-Site Preview of Vehicles, Other Items for Sale in May Auctions  Clark County, NV (.gov)

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Bahamas Sets Auction Date for Crystal Symphony and Crystal Serenity  The Maritime Executive

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Oh, the treasures: Auction of Forrest Fenn's prized collection set for June 9  Albuquerque Journal

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U.S. scraps three offshore oil and gas drilling auctions  Reuters.com

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RESULT OF RIKSBANK REVERSED AUCTIONS KOMMUNINVEST BONDS  GlobeNewswire

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EEX Revises 2022 EUA Auction Volume For The Common Europe-Wide Auctions  Exchange News Direct

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Alex Lifeson's treasured Gibson ES-355 sells at auction for $384000  Guitar World

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Ulysses S. Grant revolvers bring $5.17 million at Rock Island Auction  KLAS - 8 News Now

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Online Vehicle Auctions  Denvergov.org

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Sean Connery’s Personal 1964 Aston Martin DB5 Is Going Up For Auction  CarScoops

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Fantasy Football 2022 PPR Rankings, Auction Values: Jalen Hurts Breakout in Top 10  Sports Illustrated

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Support the online auction for Taste of the Panthers 2022  Panthers.com

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Effie Yeaw Spring Gala & Auction  Sacramento Magazine

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Weekly Surplus Auctions  Denvergov.org

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Heritage Auctions Hosting Disneyland: The Auction Featuring Almost 700 Lots, Including Ride Vehicles, Park Props, and More  WDW News Today

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Auction Calendar: April 29, 2022  Wisconsin State Farmer

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Australian wool auctions continue upward run of prices this week  Fibre2fashion.com

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Snooks, Devereaux buy Buffalo Livestock Auction | TSLN.com  Tri-State Livestock News

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NFT Charity Auction Highlights Free Ukraine Event During World Economic Forum  Yahoo Finance

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Podcast | Frieze Week in New York: mammoth auction sales and a shifting art fair landscape | The Week in Art  Art Newspaper

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Catch a Glimpse of the 2022 Madison Summer Live Auction  PR Newswire

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Greece to reopen January 2033 bond on May 23 via auction  Reuters.com

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Wine Critic Robert Parker Auctions Off One-Off Bottle For Charity  Haute Living

AUCTION SERVICE, INC. | Auctions | nny360.com - NNY360
AUCTION SERVICE, INC. | Auctions | nny360.com  NNY360

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Online Auctions Bring Positive Results for CMBS Special Servicers  Fitch Ratings

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Wayne Gretzky Game-Worn Oilers Jersey From Stanley Cup Clincher Hits Auction Block  TMZ

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Tim’s Travels: Mid America Mini Cow Show Auction happening this weekend  KTVI Fox 2 St. Louis

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HODINKEE's Top Observations From Geneva Spring Auction Week 2022  HODINKEE

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Fort Worth philanthropist Anne H. Bass' art collection hauls in $363.1 million at NYC auction  culturemap.com

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Vintage Auctions of Ottawa to hold online jewelry auction  LimaOhio.com

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Kobe Bryant rookie jersey expected to fetch $3-$5 million at auction  NBC Sports

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Boulder City Collection of Classic US Cents in Heritage Showcase Auction  CoinWeek

City-Owned Vacant Property Online Auction - Norfolk (.gov)
City-Owned Vacant Property Online Auction  Norfolk (.gov)

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Rare 1969 Chevy Corvette L88 To Cross Auction Block In Indy  GM Authority

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Silent auction items/experiences needed for All-School Reunion  Wadena Pioneer Journal

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Picasso painting fetches $67.5M at auction  Fox Business

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Rebag introduces auctions for used luxury items  Retail Dive

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Bull Market: Cattle Prices Boom at Livestock Auctions  Lancaster Farming

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Warren Buffett Auctions Private Lunch Meeting for the Last Time  Barron's

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Fremont County man launches Cellhouse Auctions; first auction set for May 21  Canon City Daily Record

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Jackie Robinson bat from 1949 All-Star Game sells for $1.08 million at auction  ESPN

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St. Coletta's Caritas Benefit silent auction open until May 21  The Herald-News

County Hosts Spring Online Surplus Auction May 14-17 - Atlantic Highlands Herald
County Hosts Spring Online Surplus Auction May 14-17  Atlantic Highlands Herald

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Spectrum Auctions Have Raised $230 Billion; The FCC’s Authority To Conduct Them Will Lapse Soon If Congress Doesn’t Act.  Forbes

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Letters by Jung showing interest in Jewish texts up for auction  The Times of Israel

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Marquette Catholic Auction Sets Fund-Raising Record Of $126,980 Profit  RiverBender.com

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Odd Fellows building sold at auction in Owensboro  14 News WFIE Evansville

See's Auction Service | Auctions - Hampshire Review
See's Auction Service | Auctions  Hampshire Review

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Kurt Cobain's Guitar From The "Smells Like Teen Spirit" Video Is Up For Auction  Stereogum

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Justice Ruth Bader Ginsburg’s Personal Mementos Up for Auction  The New York Times

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Pocatello surplus auction starts Saturday; vehicles, furniture, tools and more up for grabs  East Idaho News

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Yoder’s Quilt Auction and Flea Market returns to Clare  The Morning Sun

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The Record-Breaking Auctions of 2021  Statista

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State auction Thursday and Friday in-person and online, 100s of vehicles included  AL.com

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US treasury auctions off $17 billion of 20 year bonds at a high yield of 3.29%  ForexLive

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Local artists will auction artwork for Ukraine  WWSB

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NGC-certified British Coins Realize $5.8M in SINCONA Auction 75 | CoinNews  CoinNews.net

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