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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 Thu. March / 30 / 2023

U.S. auctions off Arizona-sized stretch of the Gulf of Mexico for oil and gas drilling - CBS News
  1. U.S. auctions off Arizona-sized stretch of the Gulf of Mexico for oil and gas drilling  CBS News
  2. US puts Italy-sized chunk of Gulf of Mexico up for auction for oil drilling  The Guardian US
  3. Biden administration auctions more than 2,000 miles of Gulf of Mexico for oil leasing  The Hill

'Ultra-rare' pink diamond expected to sell for more than $35 million at auction - CNN
  1. 'Ultra-rare' pink diamond expected to sell for more than $35 million at auction  CNN
  2. ‘Eternal Pink' Diamond to Go Up for Auction in NYC, Could Fetch More Than $35 Million  NBC New York
  3. Diamond with rare pink color, clarity could get $35 million at auction  USA TODAY

An Unopened 2007 iPhone Can Be Yours (for $32000 or More) - The New York Times
An Unopened 2007 iPhone Can Be Yours (for $32000 or More)  The New York Times

Northern Michigan resort auctions off vintage ski lift chairs for charity - MLive.com
Northern Michigan resort auctions off vintage ski lift chairs for charity  MLive.com

Suffolk police to auction 120 vehicles, with bids starting at $300, including Jeeps, BMWs - Newsday
Suffolk police to auction 120 vehicles, with bids starting at $300, including Jeeps, BMWs  Newsday

Mecum collector car auction comes to Glendale’s State Farm Stadium - KTAR.com
Mecum collector car auction comes to Glendale’s State Farm Stadium  KTAR.com

County Police to hold vehicle auction Saturday - RiverheadLOCAL
County Police to hold vehicle auction Saturday  RiverheadLOCAL

Flatiron Building auction winner fails to pay $19M deposit - New York Post
Flatiron Building auction winner fails to pay $19M deposit  New York Post

Flatiron Auction Exposes Problem With Tenancy-in-Common - The Real Deal
Flatiron Auction Exposes Problem With Tenancy-in-Common  The Real Deal

Man whose $190M bid won auction of New York's Flatiron Building has failed to make down payment - Daily Mail
Man whose $190M bid won auction of New York's Flatiron Building has failed to make down payment  Daily Mail

Time Is Running Out for the Mystery Owner of This Abandoned Superyacht, Which Might Soon Go to Auction - Jalopnik
Time Is Running Out for the Mystery Owner of This Abandoned Superyacht, Which Might Soon Go to Auction  Jalopnik

An unopened 2007 iPhone can be yours (for $32,000 or more) - The Seattle Times
An unopened 2007 iPhone can be yours (for $32,000 or more)  The Seattle Times

Chez Josef headed back to auction after buyer with marijuana plans can’t get financing - MassLive.com
Chez Josef headed back to auction after buyer with marijuana plans can’t get financing  MassLive.com

Worth Over $150 Million, This Epic Jewelry Collection Is Poised to Shatter Auction Records - Robb Report
Worth Over $150 Million, This Epic Jewelry Collection Is Poised to Shatter Auction Records  Robb Report

US auctions Gulf of Mexico oil under climate bill compromise - Anchorage Daily News
US auctions Gulf of Mexico oil under climate bill compromise  Anchorage Daily News

Jewelry & Paintings Lead An Expanding Peterborough Auctions - Antiques and the Arts Online
Jewelry & Paintings Lead An Expanding Peterborough Auctions  Antiques and the Arts Online

March 28 - Revenue Raised by Cap-and-Invest Auction #1 - Washington State Department of Ecology
March 28 - Revenue Raised by Cap-and-Invest Auction #1  Washington State Department of Ecology

Phillips Plans to ‘Shake Up the Sale Calendar’ With More Auctions in Hong Kong - Yahoo News
Phillips Plans to ‘Shake Up the Sale Calendar’ With More Auctions in Hong Kong  Yahoo News

HiBid Auctions Surpass $44M in GMV Last Week, with Commemorative Coins, Sports and Pokémon Cards, Comics, and More Now Open for Bidding - Yahoo Finance
HiBid Auctions Surpass $44M in GMV Last Week, with Commemorative Coins, Sports and Pokémon Cards, Comics, and More Now Open for Bidding  Yahoo Finance

Online Real Estate Auctions Boast 90 Days to Close - Globe St.
Online Real Estate Auctions Boast 90 Days to Close  Globe St.

Norway Announces Details for First Two Offshore Wind Auctions - The Maritime Executive
Norway Announces Details for First Two Offshore Wind Auctions  The Maritime Executive

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GM Financial Announces 2022 Auction of the Year Winners  Business Wire

How vehicle volumes, sales rates performed at NAAA-member ... - Auto Remarketing
How vehicle volumes, sales rates performed at NAAA-member ...  Auto Remarketing

Auction Calendar - March 31, 2023 - AgUpdate
Auction Calendar - March 31, 2023  AgUpdate

Comic shop auctions off artwork for literacy fundraiser - WMRA Public Radio
Comic shop auctions off artwork for literacy fundraiser  WMRA Public Radio

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PJM plans capacity auction delays as it develops market reforms to ...  Utility Dive

Sullivan Auctioneers, a BigIron company, Drives One Of The Largest ... - PR Newswire
Sullivan Auctioneers, a BigIron company, Drives One Of The Largest ...  PR Newswire

Suffolk Police to Auction Vehicles in Westhampton - Dan’s Papers
Suffolk Police to Auction Vehicles in Westhampton  Dan’s Papers

Last day to enter items in cattlemen's equipment auction - The Troy ... - Troy Messenger
Last day to enter items in cattlemen's equipment auction - The Troy ...  Troy Messenger

Heritage Auctions in Beverly Hills hosts 850-piece Disney auction that includes pieces from movies and parks - KABC-TV
Heritage Auctions in Beverly Hills hosts 850-piece Disney auction that includes pieces from movies and parks  KABC-TV

A rare Michael Jordan card is up for auction - WGN TV Chicago
A rare Michael Jordan card is up for auction  WGN TV Chicago

Alex Murdaugh auction items being resold on eBay with huge price tags - New York Post
Alex Murdaugh auction items being resold on eBay with huge price tags  New York Post

Leyton FFA Labor Auction a Hit - Sidney Sun Telegraph
Leyton FFA Labor Auction a Hit  Sidney Sun Telegraph

This Rare Pink Diamond Could Fetch Over $35 Million at Auction This Summer - Robb Report
This Rare Pink Diamond Could Fetch Over $35 Million at Auction This Summer  Robb Report

VCSU to hold 28th annual scholarship auction on April 28 - Valley City State University
VCSU to hold 28th annual scholarship auction on April 28  Valley City State University

$264M offered in Gulf oil sale held under climate compromise - WSAZ
$264M offered in Gulf oil sale held under climate compromise  WSAZ

Heritage's World Paper Money Auction Tops $2.1 Million - CoinNews.net
Heritage's World Paper Money Auction Tops $2.1 Million  CoinNews.net

EU plans early carbon market auctions from July - Reuters
EU plans early carbon market auctions from July  Reuters

Govt kick starts 7th round of commercial coal mine auctions, offering 106 mines for sale | Mint - Mint
Govt kick starts 7th round of commercial coal mine auctions, offering 106 mines for sale | Mint  Mint

Audacy extends auction for Radio.com web address - The Desk
Audacy extends auction for Radio.com web address  The Desk

Lane watch: Considering if 'madness' is at auctions, too - Auto Remarketing
Lane watch: Considering if 'madness' is at auctions, too  Auto Remarketing

March 7 - Results of First Cap-and-Invest Auction Announced - Washington State Department of Ecology
March 7 - Results of First Cap-and-Invest Auction Announced  Washington State Department of Ecology

Asia Week New York’s Standout Auction Sales - Observer
Asia Week New York’s Standout Auction Sales  Observer

36th Annual March In Montana Auction Raises The Bar For Western ... - Antiques and the Arts Online
36th Annual March In Montana Auction Raises The Bar For Western ...  Antiques and the Arts Online

Illinois announces online auction for unclaimed property - WGN TV Chicago
Illinois announces online auction for unclaimed property  WGN TV Chicago

AUD/USD Price Analysis: Auctions below 0.6700 as soften Australian CPI cements steady RBA policy - FXStreet
AUD/USD Price Analysis: Auctions below 0.6700 as soften Australian CPI cements steady RBA policy  FXStreet

Bid4Assets to Host Tax-Defaulted Property Sale for Riverside County, California with 267 Online Auction Listings - Yahoo Finance
Bid4Assets to Host Tax-Defaulted Property Sale for Riverside County, California with 267 Online Auction Listings  Yahoo Finance

Native Americans protest, derail sale of human skull at North Carolina auction house - Raleigh News & Observer
Native Americans protest, derail sale of human skull at North Carolina auction house  Raleigh News & Observer

Nasdaq First North Growth Market Introduces Auction - Traders Magazine
Nasdaq First North Growth Market Introduces Auction  Traders Magazine

Up for auction…again - Warwick Beacon
Up for auction…again  Warwick Beacon

It's games, purses and auctions for Ladies Night Out - The Daily Jeffersonian
It's games, purses and auctions for Ladies Night Out  The Daily Jeffersonian

Huge collection of vintage Apple computers goes to auction next week - Ars Technica
Huge collection of vintage Apple computers goes to auction next week  Ars Technica

Unveiling The Collector Global Auction Series: April 2023 - Salon Privé Magazine
Unveiling The Collector Global Auction Series: April 2023  Salon Privé Magazine

French Auction House Calls Mexico’s Effort to Stop Sale of Pre-Columbian Artifacts ‘Nationalist Opportunism’ - ARTnews
French Auction House Calls Mexico’s Effort to Stop Sale of Pre-Columbian Artifacts ‘Nationalist Opportunism’  ARTnews

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Magic: The Gathering Black Lotus auction breaks new record: $615,000  Polygon

Former RadioShack CEO Auctions Fort Worth Mansion - The Real Deal
Former RadioShack CEO Auctions Fort Worth Mansion  The Real Deal

Leland Little to Auction the Estate of the late Frank Daniels, Jr. and his wife Julia Jones Daniels, Raleigh, North Carolina - Yahoo Finance
Leland Little to Auction the Estate of the late Frank Daniels, Jr. and his wife Julia Jones Daniels, Raleigh, North Carolina  Yahoo Finance

Liberty Auction sells off Alex Murdaugh family items, including from ... - WLS-TV
Liberty Auction sells off Alex Murdaugh family items, including from ...  WLS-TV

Livestock Auction Calendar - March 31, 2023 - AgUpdate
Livestock Auction Calendar - March 31, 2023  AgUpdate

NYC's Flatiron building is going up for sale in a public auction—anyone can win: Here's what to know - CNBC
NYC's Flatiron building is going up for sale in a public auction—anyone can win: Here's what to know  CNBC

Joan Miro Drawing Out In Front At La Belle Epoque Auction - Antiques and the Arts Online
Joan Miro Drawing Out In Front At La Belle Epoque Auction  Antiques and the Arts Online

Chicago auction house opening bids for items connected to Harry Houdini - FOX 32 Chicago
Chicago auction house opening bids for items connected to Harry Houdini  FOX 32 Chicago

FCC's spectrum auction authority nears March expiration - Roll Call
FCC's spectrum auction authority nears March expiration  Roll Call

Single-owner sales: Wine auction wisdom - decanter.com
Single-owner sales: Wine auction wisdom  decanter.com

Rare T-Rex skeleton to go under the hammer in Switzerland - Reuters
Rare T-Rex skeleton to go under the hammer in Switzerland  Reuters

Vacant DTC office building, formerly home to Comcast, hitting auction block - The Denver Post
Vacant DTC office building, formerly home to Comcast, hitting auction block  The Denver Post

eBay Vessel Auctions are Binding, German Court Rules - The Maritime Executive
eBay Vessel Auctions are Binding, German Court Rules  The Maritime Executive

ICE to Host Carbon Credit Auctions for UpEnergy - Business Wire
ICE to Host Carbon Credit Auctions for UpEnergy  Business Wire

Heather Clary for B.B.B. KY Talks B.B.B. Auction at Central Kentucky ... - WTVQ
Heather Clary for B.B.B. KY Talks B.B.B. Auction at Central Kentucky ...  WTVQ

An $18 million Ferrari leads record classic-car auction at Amelia Island. See all 10 top sellers - CNBC
An $18 million Ferrari leads record classic-car auction at Amelia Island. See all 10 top sellers  CNBC

Monorail cabin, lost footage of Walt among Disney artifacts up for auction - KTLA Los Angeles
Monorail cabin, lost footage of Walt among Disney artifacts up for auction  KTLA Los Angeles

Feb. 28 - First Cap-and-Invest Auction - Washington State Department of Ecology
Feb. 28 - First Cap-and-Invest Auction  Washington State Department of Ecology

UPDATE – 1stDibs Corners The Market For “Mid-Market” Auctions - Yahoo Finance
UPDATE – 1stDibs Corners The Market For “Mid-Market” Auctions  Yahoo Finance

The Only TVR Cerbera Speed 12 Road Car Ever Built Is Heading to Auction - Robb Report
The Only TVR Cerbera Speed 12 Road Car Ever Built Is Heading to Auction  Robb Report

Inside the auction house driving the rare-book craze in the Orthodox ... - JTA News - Jewish Telegraphic Agency
Inside the auction house driving the rare-book craze in the Orthodox ...  JTA News - Jewish Telegraphic Agency

How Cancelling an eBay Auction Can Get Sellers in Trouble - EcommerceBytes
How Cancelling an eBay Auction Can Get Sellers in Trouble  EcommerceBytes

Sotheby’s to auction pair of Rolex watches valued at up to $1 million each that belonged to Paul Newman - cleveland.com
Sotheby’s to auction pair of Rolex watches valued at up to $1 million each that belonged to Paul Newman  cleveland.com

‘Everything Everywhere All at Once’ Props Fetch Thousands at Auction - The New York Times
‘Everything Everywhere All at Once’ Props Fetch Thousands at Auction  The New York Times

Julien’s Auctions auctioning off Banksy and Apple items - KTLA Los Angeles
Julien’s Auctions auctioning off Banksy and Apple items  KTLA Los Angeles

Bankrupt Endo Approved to Open Auction With $6 Billion Bid (1) - Bloomberg Law
Bankrupt Endo Approved to Open Auction With $6 Billion Bid (1)  Bloomberg Law

Detroit police vehicle auctions include cars, trucks, more in March -- See the schedule - FOX 2 Detroit
Detroit police vehicle auctions include cars, trucks, more in March -- See the schedule  FOX 2 Detroit

1958 Cadillac Series 62 Convertible Arizona Auction Bound - GM Authority
1958 Cadillac Series 62 Convertible Arizona Auction Bound  GM Authority

Wilber family auctions era ends a century later - Coldwater Daily Reporter
Wilber family auctions era ends a century later  Coldwater Daily Reporter

Rare 1953 Corvette will be on the block at Carlisle Auctions two-day sale on April 20-21 - WPMT FOX 43
Rare 1953 Corvette will be on the block at Carlisle Auctions two-day sale on April 20-21  WPMT FOX 43

FCC spectrum auction authority lapses amid questions on military ... - Roll Call
FCC spectrum auction authority lapses amid questions on military ...  Roll Call

This Patek Philippe is most expensive watch ever sold at online auction - Yahoo Finance
This Patek Philippe is most expensive watch ever sold at online auction  Yahoo Finance

Fladeboe Auctions, Franz Richter and WWII story on Postcards - Pioneer Public Television
Fladeboe Auctions, Franz Richter and WWII story on Postcards  Pioneer Public Television

Online tax auctions coming to Ellis - Waxahachie Daily Light
Online tax auctions coming to Ellis  Waxahachie Daily Light

Kandinsky painting recovered by Holocaust victims' heirs sets auction record at nearly $45 million - CNN
Kandinsky painting recovered by Holocaust victims' heirs sets auction record at nearly $45 million  CNN

Going Once, Going Twice: How to Bid on a First-Class Seat - The New York Times
Going Once, Going Twice: How to Bid on a First-Class Seat  The New York Times

Elon Musk collectible items expected to fetch big prices at auction - Washington Times
Elon Musk collectible items expected to fetch big prices at auction  Washington Times

Rare print of Hokusai's 'Great Wave' sets new auction record - CNN
Rare print of Hokusai's 'Great Wave' sets new auction record  CNN

Patrick Mahomes memorabilia expected to sell for $200,000 at auction - KMBC Kansas City
Patrick Mahomes memorabilia expected to sell for $200,000 at auction  KMBC Kansas City

Owego antique center resurrects live auction tradition: What to know - Pressconnects
Owego antique center resurrects live auction tradition: What to know  Pressconnects

Auctions of mortgage covered bonds for the refinancing of FlexKort®, RD Cibor6® and RD Euribor3® - Yahoo Finance
Auctions of mortgage covered bonds for the refinancing of FlexKort®, RD Cibor6® and RD Euribor3®  Yahoo Finance

Krehbiel private collection exceeds expectations at Hindman auctions - Crain's Chicago Business
Krehbiel private collection exceeds expectations at Hindman auctions  Crain's Chicago Business

265-Room Connecticut Hotel Going Up for Auction - The Real Deal
265-Room Connecticut Hotel Going Up for Auction  The Real Deal

UPDATE 1-U.S. Treasury reschedules 4-, 8-week bill auctions for Friday - Yahoo Finance
UPDATE 1-U.S. Treasury reschedules 4-, 8-week bill auctions for Friday  Yahoo Finance

U.S. FDIC weighs backstop on bank auctions to attract smaller peers - Reuters
U.S. FDIC weighs backstop on bank auctions to attract smaller peers  Reuters

Auctions to benefit Alliance for Better Long Term Care - Warwick Beacon
Auctions to benefit Alliance for Better Long Term Care  Warwick Beacon

Allegany County online tax auction starts today - THE WELLSVILLE SUN
Allegany County online tax auction starts today  THE WELLSVILLE SUN

BID NOW: Flyers Charities NHL Signed-Stick Auction - NHL.com
BID NOW: Flyers Charities NHL Signed-Stick Auction  NHL.com

Auction process is reportedly underway to find a buyer for Silicon Valley Bank - CNBC
Auction process is reportedly underway to find a buyer for Silicon Valley Bank  CNBC

More Than $200,000 in Handbags Stolen from Manhattan Auction ... - Observer
More Than $200,000 in Handbags Stolen from Manhattan Auction ...  Observer

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