eBay Fee Changes effective 2nd April 2015
eBay UK have just announced four fee changes for Business Sellers which will be effective from the 2nd of April.
eBay say that “We keep our fees under continuous review and believe that overall our new fee structure is simpler and remains very competitive. eBay’s business is growing and we are investing to help our sellers grow their businesses further. This investment comes at a cost, which is one of the factors in our decision to make small changes to our fee structures”
Rounding up final value fees
Expect to see a small increase in final value fees as eBay round them up to a whole number. For example in the homewares category the final value fee will increase from 9.57% to 10%.
Whilst this is a small change any rise in fees is always unwelcome and the only good news we have to offer is that you’ll only pay these fees if you’re successful and make a sale.
Decrease in eBay Premium Service discount
eBay are decreasing eBay Premium Service discounts from 15% to 10%.
To be honest this doesn’t come as that much of a surprise. eBay traditionally use a carrot and stick approach to encourage certain behaviours. It’s been some time since eBay started to encourage sellers to offer Premium Service and those offering it will probably continue to do so and those not offering Premium Service probably aren’t going to be convinced to offer it in the future.
Put simply if eBay don’t decrease Premium Service Discounts they won’t have the budget to offer discounts to encourage different seller behaviour in the future.
As always never rely on discounts when setting your business budgets, they’re not guaranteed as we’re now seeing and whilst discounts are always welcome (if for nothing else than your annual holiday fund!), if you don’t qualify or eBay reduce or remove them you still need your business to be profitable. Still it’s a bit of a downer to know they’re decreasing from next month.
10p listing fine for no sales
I just mentioned the carrot and stick approach and this one is most definitely the stick! From summer 2015 eBay are going to impose a 10p charge for listings that run 18 months without a sale. This is easy to avoid, simply monitor your listings at least once every 18 months and if a listing is still live but hasn’t had a sale end it.
18 months is a long time, surely you monitor your listings monthly, quarterly, bi-annually or at least annually already? You’re paying GTC fees and you want sales! Surely you’re aware how many of your listings didn’t get a sale in the whole of 2014?
There’s also a very simple solution, end listings without sales and relist them. At the same time check the images, listing titles, category, price, Item Specifics and make sure that it’s an attractive listing likely to sell.
The people this will really affect are those who sell products such as stamps where they may have 10s of 1000s of listings with a healthy flow of sales but it may take years before any one particular item finds a buyer. However even here with bulk listing management tools it shouldn’t prove too difficult to cancel and relist items… and you could quite well find the relisted items get better placement in Best Match as a bonus.
Anchor Shops capped at 50,000 listings
Also from this summer, sellers who subscribe to an Anchor Shop will now have their listings capped at 50,000 fixed price listings per month.
You’ll be able to list more by paying an additional 5p for each listing over your allowance. Alternatively, eBay will be offering an additional Unlimited Listing Pack which can be purchased separately for £250.
I’m not sure of the reasoning behind this, but 50,000 is one heck of a lot of listings, especially taking into account that many categories now support multi-variation listings so 50,000 listings could be millions of individual SKUs. Does this 50,000 limit affect you and if so probably the best solution is simply to open two shops and split your product by category to make it easier for buyers to find the specific products they want to buy.