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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


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Cardboard box filled with unopened hockey cards sells for more than $3.7 million at auction - CBS News
Cardboard box filled with unopened hockey cards sells for more than $3.7 million at auction  CBS News

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Ultra-rare Wayne Gretzky rookie cards expected to be part of $3.72m Canadian auction  The Guardian

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Wayne Gretzky rookie card possibly among bundle sold at auction  KARE11.com

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Musicians' muse Pattie Boyd auctions love letters from Eric Clapton and George Harrison  The Associated Press

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Pattie Boyd, Eric Clapton and George Harrison ‘love triangle’ letters up for auction  CNN

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Musicians' muse Pattie Boyd auctions love letters from Eric Clapton and George Harrison  Euronews

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Auctions Caused Modest Weakness, But Mostly in Advance  Mortgage News Daily

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California hoped to recoup millions in a bong auction. It made $2,075.  SFGATE

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International Harvester auctions set after long-time collector passes away  ABC27

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Napa Wine Auction Prices Plummet  Wine-Searcher

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Ritzy parties, billion-dollar auctions: 2 events are changing the car hobby  ABC News

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This Ultra-Rare Porsche 918 Spyder Could Fetch $3 Million at Auction  Robb Report

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Treasury Market Tests Appetite for Yield With Another Auction  Bloomberg

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Ethiopian government tries to stop UK auction of looted Maqdala shield  The Guardian

Art, animals and auctions: Oak Harbor High School raises funds for Humane Society - The Beacon
Art, animals and auctions: Oak Harbor High School raises funds for Humane Society  The Beacon

Dolly Parton auctioning off Pet Gala costumes for charity - WVLT
Dolly Parton auctioning off Pet Gala costumes for charity  WVLT

Dolly Parton auctions off Pet Gala Costumes for pets in need - WATE 6 On Your Side
Dolly Parton auctions off Pet Gala Costumes for pets in need  WATE 6 On Your Side

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Frank Schilling to Auction 130 Acres of Land in Malibu  DomainInvesting.com

Case Possibly Containing Gretzky Rookie Cards Sells For $3.7M - KSL Sports
Case Possibly Containing Gretzky Rookie Cards Sells For $3.7M  KSL Sports

Minnesota State Fair auction closed Tuesday, some items sold for thousands - MPR News
Minnesota State Fair auction closed Tuesday, some items sold for thousands  MPR News

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US court gets 12 preliminary bids in Citgo share auction  Reuters

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ACV Auctions Inc. (NASDAQ:ACVA) Q4 2023 Earnings Call Transcript  Yahoo Finance

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DuBois Rotary Club hosting live radio auction fundraiser Saturday  The Courier-Express

RM Sothebys ModaMiami Event Car Watch Auction - HYPEBEAST
RM Sothebys ModaMiami Event Car Watch Auction  HYPEBEAST

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‘Messi screwed it up’: Post cartoonist’s Year of the Dragon art for auction  South China Morning Post

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Building Better Futures: CIHI Tool Auctions and Plane Wellness Join Forces for Mental Wellness  EIN News

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Local auction to raise money for National Multiple Sclerosis Society  WECT

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Sotheby's MoonSwatch Suitcases Sell for Over $600K  National Jeweler

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Why a 1935 Canadian Banknote Is Set to Sell for Upwards of $250K  Observer

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Big-dollar Malibu land parcel perched above celebrity homes will head to auction in April  New York Post

1953 Ferrari 250 Europa Coupe Vignale Auction - HYPEBEAST
1953 Ferrari 250 Europa Coupe Vignale Auction  HYPEBEAST

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Page From ‘Watchmen’ Comic Could Reach $300,000 in First Auction from Author Neil Gaiman’s Personal Collection  Barron's

Online vehicle auction starts Friday | The Blade - Toledo Blade
Online vehicle auction starts Friday | The Blade  Toledo Blade

Bidders Chase Elton John Items and a Banksy at Christie's Auctions - The New York Times
Bidders Chase Elton John Items and a Banksy at Christie's Auctions  The New York Times

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BILLINGS March Auctions: Presenting Inaugural Modern Design for Outdoor Living Auction and Spring Modern Art + ...  Longview News-Journal

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1988 Porsche 959 SC with famous history headed to Amelia Island auctions  Autoblog

In Photos: Glimpses Of The Britain Costume Auction - Outlook India
In Photos: Glimpses Of The Britain Costume Auction  Outlook India

Fire at Rock Island Livestock Auction Barn believed to be intentionally set - KWQC
Fire at Rock Island Livestock Auction Barn believed to be intentionally set  KWQC

Case possibly containing Wayne Gretzky rookie cards sells for $3.7M at auction - The Associated Press
Case possibly containing Wayne Gretzky rookie cards sells for $3.7M at auction  The Associated Press

Medici Family Jewels Head to Auction - JCK
Medici Family Jewels Head to Auction  JCK

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U.S. election, interest rates top of mind for auto auction execs  Automotive News

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Frank Schilling Auctions 130 Acres of Prime Malibu Land: A Unique Development Opportunity  BNN Breaking

Officials: Fire at Rock Island Livestock Auction Barn believed to be intentionally set - KWQC
Officials: Fire at Rock Island Livestock Auction Barn believed to be intentionally set  KWQC

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Unopened Case of More Than 10000 Hockey Cards Sells for $3.7 Million  The New York Times

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Humane Society of Wayne County Auction returns for 2024  RochesterFirst

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ACV Auctions Inc. (NASDAQ:ACVA) Just Released Its Annual Earnings: Here's What Analysts Think  Yahoo Finance

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Treasury’s record-size $64 billion sale of 5-year notes meets so-so demand  MarketWatch

Officials: Fire at Rock Island Livestock Auction Barn believed to be intentionally set - KCRG
Officials: Fire at Rock Island Livestock Auction Barn believed to be intentionally set  KCRG

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Auction: Historic church converted into family home  Yahoo! Voices

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Latest CA-Quebec carbon auction results hint at possible WA linkage benefits  Blackchronicle

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Tell Julian: ArtRageous Gala and Auction  21 Alive News

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One of the Largest and Most Unique Land Holdings on the Pacific Coast Highway to Auction via Concierge  EIN News

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Harry Potter proof copy sells for £11K at auction  USA TODAY

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Babe Ruth's 1916 Game-Used, Signed Glove Pulled from Auction 11 Hours Before Close  Bleacher Report

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HeadCount and The WaterWheel Foundation Auction Unique Jim Pollock Phish Print for $29,800  jambands.com

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Property prices expected to lift as auctions surge in February  MSN

Neil Gaiman on the Collectibles He's Auctioning - The New York Times
Neil Gaiman on the Collectibles He's Auctioning  The New York Times

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Silent auction will help in the fight against cancer in Kansas  WIBW

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Kellogg property going to auction, but what will happen to the venue on it is unclear  Wichita Eagle

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4-H takes bids at the Spencer County 4-H auction fundraiser  The Herald

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Mecum Auctions returns to Glendale | Recommended | glendalestar.com  Glendale Star

Case of mystery ice hockey cards found in Canadian basement fetch $3.7m at auction - BBC.com
Case of mystery ice hockey cards found in Canadian basement fetch $3.7m at auction  BBC.com

Registration open for San Diego County property tax auction | cbs8.com - CBS News 8
Registration open for San Diego County property tax auction | cbs8.com  CBS News 8

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Treasury Market Tests Appetite for Yield With Another Auction  Yahoo Finance

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Championship-Winning 1997 Mercedes-AMG CLK GTR GT1 Gunning for Many Millions at Auction  autoevolution

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Earnings call: ACV Auctions shows growth and targets profitability in 2024 By Investing.com  Investing.com

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Tusculum University to host art auction for Restore Ukraine  WJHL-TV News Channel 11

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Cité du Vin receives funding boost from Sotheby’s auction  Decanter.com

On the Occasion of Its First Physical Auction on French Soil Baghera/Wines Presents: Château Ducru-Beaucaillou ... - wineindustryadvisor.com
On the Occasion of Its First Physical Auction on French Soil Baghera/Wines Presents: Château Ducru-Beaucaillou ...  wineindustryadvisor.com

Hockey Cards Auction | | unionrecorder.com - The Union-Recorder
Hockey Cards Auction | | unionrecorder.com  The Union-Recorder

Eric Clapton’s Love Letters to George Harrison’s Then-Wife Pattie Boyd Are Headed to Auction - Billboard
Eric Clapton’s Love Letters to George Harrison’s Then-Wife Pattie Boyd Are Headed to Auction  Billboard

ACV Auctions Announces the Settlement of Litigation Regarding AutoIMS - Yahoo Finance
ACV Auctions Announces the Settlement of Litigation Regarding AutoIMS  Yahoo Finance

Case possibly containing Wayne Gretzky rookie cards sells for $3.7M at auction - Daily Independent
Case possibly containing Wayne Gretzky rookie cards sells for $3.7M at auction  Daily Independent

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Garrard County Sheriff’s Office to auction off impounded cars, trucks  Fox 56 News

Why ACV Auctions Stock Popped Today - Nasdaq
Why ACV Auctions Stock Popped Today  Nasdaq

California Bong Auction Earns Just $2,075 - Ganjapreneur - Ganjapreneur
California Bong Auction Earns Just $2,075 - Ganjapreneur  Ganjapreneur

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Bidder Registration Opens For San Diego County Property Tax Auction  Patch

Oklahoma man hacked government auction site to buy cars for a buck - CBS News
Oklahoma man hacked government auction site to buy cars for a buck  CBS News

Early Trading Suggests Some Treasury Auction Anxiety - Mortgage News Daily
Early Trading Suggests Some Treasury Auction Anxiety  Mortgage News Daily

eBay Releases 151 Pokémon Collectibles in Ultra-Rare One-Day Auction - eBay Inc.
eBay Releases 151 Pokémon Collectibles in Ultra-Rare One-Day Auction  eBay Inc.

Work by Tove Jansson, the multi-talented “mother” of the Moomins up for auction - Modern Diplomacy
Work by Tove Jansson, the multi-talented “mother” of the Moomins up for auction  Modern Diplomacy

Commodities Trader Sidney Rothberg’s Art Collection Heads to Auction - Barron's
Commodities Trader Sidney Rothberg’s Art Collection Heads to Auction  Barron's

63rd Hospices De Nuits-Saint-Georges Wine Auction a Superb Vintage, and a Great Ambassador for Burgundy! - wineindustryadvisor.com
63rd Hospices De Nuits-Saint-Georges Wine Auction a Superb Vintage, and a Great Ambassador for Burgundy!  wineindustryadvisor.com

Massachusetts Students Accused Of Snapchat Slave Auction - Bossip
Massachusetts Students Accused Of Snapchat Slave Auction  Bossip

Historic Salem Courthouse online auction - NYVT Media
Historic Salem Courthouse online auction  NYVT Media

Family-owned auction house in Falls Church approved for mixed-use redevelopment - Washington Business Journal - Washington Business Journal
Family-owned auction house in Falls Church approved for mixed-use redevelopment - Washington Business Journal  Washington Business Journal

The 3rd Annual Texas Wine Auction: Celebrating the Stars Deep in the Heart of Texas - wineindustryadvisor.com
The 3rd Annual Texas Wine Auction: Celebrating the Stars Deep in the Heart of Texas  wineindustryadvisor.com

Car of the Week: This Rare 1967 Ferrari 365 California Spyder Could Fetch $4.5 Million at Auction - Robb Report
Car of the Week: This Rare 1967 Ferrari 365 California Spyder Could Fetch $4.5 Million at Auction  Robb Report

Police: Rock Island Livestock Auction barn fire was deliberate - WQAD Moline
Police: Rock Island Livestock Auction barn fire was deliberate  WQAD Moline

From the boats of Ye Old Mill to folding chairs, now is your time to own a piece of the Minnesota State Fair - MPR News
From the boats of Ye Old Mill to folding chairs, now is your time to own a piece of the Minnesota State Fair  MPR News

Forex Today: Cautious start to the week ahead of US Treasury note auctions - FXStreet
Forex Today: Cautious start to the week ahead of US Treasury note auctions  FXStreet

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We'll Be Live at The 2024 Amelia Auctions  Hagerty Media

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'Battery developers biggest winners' in UK's T-1 Capacity Market  Energy-Storage.news

Years-Long Legal Battle Between Former US Ambassador and French Auction House Leader Continues - ARTnews
Years-Long Legal Battle Between Former US Ambassador and French Auction House Leader Continues  ARTnews

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ACV Auctions secures key license in antitrust lawsuit settlement  Automotive News

Own a piece of Hollywood from Treasures of Planet Hollywood - Attractions Magazine
Own a piece of Hollywood from Treasures of Planet Hollywood  Attractions Magazine

Sprawling 29-acre mansion in east Louisville up for auction in March with starting bid of $1 - WDRB
Sprawling 29-acre mansion in east Louisville up for auction in March with starting bid of $1  WDRB

Coal India to bid for 3 mines in critical minerals auctions in Feb - Reuters
Coal India to bid for 3 mines in critical minerals auctions in Feb  Reuters

Yields rise in anticipation of Treasury auction - TradingView
Yields rise in anticipation of Treasury auction  TradingView

Young gamer lists rare copy of NES Zelda hoping for "something like $15000 or $20000," sells it at auction for $288000 ... - Gamesradar
Young gamer lists rare copy of NES Zelda hoping for "something like $15000 or $20000," sells it at auction for $288000 ...  Gamesradar

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