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Comparison between the old & new eBay UK fees

By Chris Dawson March 18, 2011 - 3:59 pm

There’s been a lot of talk over the last few days on how the fee changes will impact sellers. There’s also a fair amount of confusion out there as to what the impact will be.

Quite frankly the was fiendishly complicated with many sellers not even realising that there is a difference between the Final Value Fees for an item sold on auction and the fees for selling the same item from a Fixed Price listing.

This was further complicated as the first tranche for auction fees (in most categories) was 8.75% up to £29.99 and yet for fixed price items fees started at 9.9% of the final selling price up to £49.99. Even the break points between fee tranches didn’t match.

This post is simply a comparison between the Final Value Fee you would pay under the existing fee structure depending on the category you sell in and the listing format you used and the .

There are some pretty steep fee increases in all categories with the exception of Media where the price of selling on eBay is unchanged. However as can be seen from the tables the sellers who are hardest hit are those with the highest average selling prices.

The reason sellers of high value items are affected the most is because under the old fee structure the higher the price of your item the smaller the percentage eBay charged in fees.

Typically for fixed price items this was 9.9% up to £49.99, 5.9% of £50 up to £599.99 and 1.9% of the portion of the final selling price over £600. The new flat Final Value Fees hide the increase from 1.9% which has risen to as much as 12% in CSA and 10% in Home & Garden.

Even in the Tech categories (which on the face of it appear to have had a huge fee reduction to just 3%) will be impacted by the loss of the fee tranches. Sellers of high value items will end up paying more than double under the new fee structure for items in excess of £1000.00.

Whilst no one will be in favour of the fee increases it’s important to understand how it will impact your business and exactly what fees you will be paying once the new structure kicks in. It’s time to re-evaluate your margins and make sure that your sale prices allow you to make a profit once all your costs including eBay fees have been accounted for.

Edited to add: If you’re looking for details of how the new eBay.com fee structure will affect your eBay fees then Scot Wingo of ChannelAdvisor has just published a detailed analysis.

  • 11 years ago

    hmmm I am working the old prices out as much more than these…so the difference is still bad, but not quite as bad as this?

    • 11 years ago

      Arrgh – please don’t tell me I have my sums wrong?

  • northumbrian
    11 years ago

    as we said on another thread we will be thinking thrice about listing anything with a value above £50,we often sell items of a £1000 or more, with
    vat now at 20% which we swallow most of,
    ebay 10% listing fees , paypal fees etc ,ebay is becoming much less profitable for high end collectables and antiques
    we had £120.000 gross sales on ebay this last quarter I am frightened to do the maths

  • Richard.
    11 years ago

    So why not change the fees to the same for private sellers to the same easy to work out figures, I don’t get it at all, surely these are the people who are confused not business sellers. Seems to me there’s even more incentive to try and trade under the radar as a private seller than ever nowadays.

    • northumbrian
      11 years ago

      of course if your a top rated seller you get a refund on ebay fees, though to get TRS you need to give it away deliver it by hand free with cash back
      and a keep large tube of ky gel handy

  • 11 years ago

    In your Tech example, your sums are correct, but your graphic is wrong, it shows 10% when it should be 3%. The actual figures are right though 😉

  • paddy
    11 years ago

    Does anyone think ebay will make any type of U-Turn on this? In my experience once they have made a decision, that is it! They seem very inflexible in that respect. The change that this reminds of the most was when they removed Negatives for sellers. There was all kinds of noise made by sellers at the time but now its more or less accepted and everyone gets on with it.

    • BigPoppa
      11 years ago

      Not sure that I would agree with that. For example we use Paypal, not because we like the company or agree with their ethics (or lack of) but because there is a demand and lack of competition.

      Feedback is childish, negs, positives etc means nothing to anyone, it’s all too subjective and should be dropeed immediately.

      I think these fee increases are to create a bigger gap between private and big business sellers. In that businesses should be able to build these extra costs into their model but small sellers etc may find it more difficult and leave.

    • Old Hand
      11 years ago

      “I think these fee increases are to create a bigger gap between private and big business sellers. In that businesses should be able to build these extra costs into their model but small sellers etc may find it more difficult and leave.”

      Absolutely, it is to remove the middle ground, reduce competition for the corporates but businesses can’t build these costs in to their model. Big businesses get special treatment and can negotiate their way out of them so simply do not pay them, small businesses and individuals fund their discounts.

      It’s the small business looking for the next step up the ladder that suffers, the discount that goes towards another person’s wages. Just as small businesses have lost High St footfall to out of town shopping centres so eBay is walling off their market square and building a shopping centre.

      We all lose, the diversification of products via small business owners wants, ideas and ideals gone in favour of big business’s commoditisation, standardisation and profits funnelled to offshore tax havens never to trickle down in to the local economy.

    • whirly
      11 years ago

      Talking of big business on eBay, I had a look at the retailer directory yesterday just to see who was new etc.

      Debenhams are gone
      Goldsmiths are gone
      JD Sports are gone

      And most amusing of all Austin Reed
      http://stores.ebay.co.uk/Austin-Reed-Outlet

    • Gary
      11 years ago

      I want to do an Austin Reed! 🙂

    • 11 years ago

      For the avoidance of doubt, the above comment should read: “… removed the ability of sellers to leave negative feedback for buyers”.

    • 11 years ago

      Actually eBay makes U-Turns all the time. Neutrals = Negs is one prime example. Some S&H caps (or was it mandatory free shipping?) were also reversed.

      Sometimes they’ll secretly make a rule completely ridiculous like the recent feedback extortion rules and then reverse it back to normal six months down the road. Then they’ll make a huge announcement about how these new changes will make eBay safer. People see the current state and the new announced state, praise eBay for making things better, but forget that nothing has really changed. I have so many mixed feelings about that because it is so dishonest yet so brilliant.

    • 11 years ago

      I’ve thought for sometime now that eBay’s main purpose for bringing corporate businesses on site was to get them to take up Paypal on their main websites. I don’t think, in the great scheme of things, that eBay are that bothered if they stay on eBay or if they go. If they stay, it’s simply icing on the cake.

  • BigPoppa
    11 years ago

    Would I be right in saying that the old CSA FVF’s were 9% but are now 12% and will include the shipping costs aswell?

    • 11 years ago

      Fees on shipping costs are only coming to the US site, not the UK site.

  • Gary
    11 years ago

    Private sellers have a fee cap of £40.

    I was wondering if there was anything in the small print with regard to a fee cap for business sellers that has been missed?

  • northumbrian
    11 years ago

    we can all squark and moan,
    bottom line is if we make money we will all bend over and suffer ebays fees and rules,
    ebay is my pimp

    • J R
      11 years ago

      Yes but I feel we are getting closer and closer to the point where people are probably not making enough money to view Ebay as being a viable platform.

    • Warren
      11 years ago

      The end result will be people put more time and effort into their websites and make their websites successes. eBays not my pimp.

  • dd
    11 years ago

    Smoke and mirrors for price increase… They could have simply implemented a calculator on the website that works out the fees for you for simplicity sake (keeping the same commission). If you want to see what percentage on average is charged by ebay you take the total fee being paid to ebay and divide it by sale price and multiply by 100…

  • whirly
    11 years ago

    BIN fee’s were never complicated and eBay calling them ‘Simpler’ is insulting.

    You list something, it tells you the cost of the listing, it tells you how much you will pay if it sells, you hit submit.

    How could anyone be confused by this?

  • Jack
    11 years ago

    The new fees are ridiculous, nearing with Amazon now. The main dent is to more expensive produts on eBay.

  • Gerry007
    11 years ago

    When you have the monopoly, why not abuse it….!!

  • Warren
    11 years ago

    eBays not the only plateform to sell on. If you’ve not got a website get one.

    • Henrietta
      11 years ago

      Is Harrods on Oxford St now? When did they move? Last in London in 1981 and they were still at Brompton Road then, are you confusing Harrods with Selfridges?

      OOPS! clicked the wrong reply, this is in response to Norfs post below. Sorry

  • northumbrian
    11 years ago

    Oxford st is not the only street to sell on
    though you dont find Harrods anywhere else

    • Warren
      11 years ago

      eBays not Oxford Street.

    • northumbrian
      11 years ago

      ebays Oxford st ,5th Ave and every famous shopping St in the world
      sitting in your shed, bedroom, or office,

    • Warren
      11 years ago

      In 2009 eBay had 20% share of everything sold on the internet. Thats 1 in 5. So 4 out of 5 people brought items off eBay. Google in 2009 had 80% share of search engine traffic. Therefore Googles who you should be working with, there the market leader. Although working on all search enigines is advisable, Googles like having your products in every out of town shopping centre in the country. When eBay submits your data feed to Google, your items appear as eBay. Submit your own data feeds with your website and your items appear as your brand. Google treats marketplace data feeds as the marketplace brand.
      eBay have put their fees up but do you really thing they are worth it? Going by everyones comments over the last few days no one does. Although I expects a load of comments disagreeing with me.

    • northumbrian
      11 years ago

      ebay keeps me, my family and 6 other familys that work with and for us in a very pleasant life style

      though we dont kid ourselves ebay is benign or charitable

    • Old Hand
      11 years ago

      eBay is Cheapside, ‘Peckham’ Market and Farmer Joe’s Car Boot all rolled in to one. Maybe not too far from High Street in places, about as far as Oxford St is from Brompton Road!

    • northumbrian
      11 years ago

      just do a search for rolex or cartier on ebay
      and ebay peckham looks very upper class

    • northumbrian
      11 years ago

      do a price search just for watch and find about 1500 watches priced more than £5000

    • Old Hand
      11 years ago

      No matter what the asking price the question is do they sell on eBay? £5K for a watch – what it the rrp is it £20K? Lots of people confuse price with value.

      Our web site is top three in Google, near top in Yahoo and Bing, we sell our seconds on eBay just like the others. Why – because eBay gives us a fraction of the sale price we achieve in other venues on top quality goods but for junk eBay gives us higher prices than we can achieve elsewhere and doesn’t dilute the brand. Few people associate eBay with good quality, fools equate eBay with 5th Ave. eBay search pages have “get great deals on …” as the title, that’s the market they seek and that’s what we give them. The quality is reserved for the discerning buyer. Oh yes we’ve tried putting quality items on eBay but they reach 1/4 maybe 1/3 of the price they should, not like a decade ago before the rot (Bain & Co) set in.

      For context, we’re big fish in small pond, a specialist market, a niche market one may say. Selling at auction only, bargain basement-wise, figuring a ‘shop’ on eBay would dilute the brand and anyway if we took that approach that we would do it otherwise.

      Equating eBay with quality is misinformation. That is not to say that there are no high quality items/sellers on eBay, for sure there are but a minority and for them eBay is a stepping stone to greater things.

    • northumbrian
      11 years ago

      oh well we will just drive our aston round peckham

    • Gary
      11 years ago

      Do a search of completed listings and judge for yourself if these £20000 watches sell on eBay.

      The eBay fees from May will be £2000.

    • Warren
      11 years ago

      Have you got an Aston Villa?

    • northumbrian
      11 years ago

      those ended £20.000 watches are often sold off ebay and ebay dont get the FVF

    • Gary
      11 years ago

      There is that. I do wish eBay would only show those listings that have resulted in money changing hands through official ebay sales channels at the prices shown when you do a completed listing search.

      I don’t really want to know about all the overpriced unsold items in the lists that result. Some might. I don’t!

    • 11 years ago

      The most expensive watch sold in the last 30 days on eBay UK was a Rolex at £36k, although as it’s been relisted it’s unlikely it was a successful sale.

      The next two most expensive watches sold were a Patek Philippe at just under £18k and another Rolex for almost £13k.

      There were only another 13 watches sold in the last 30 days for more than £5k from 172 watches listed with more than a £5k start price or reserve.

      Thanks to Terapeak for the data!

    • northumbrian
      11 years ago

      only 13! not bad for peckham car boot fair
      and thats just watches, expensive jewellery and high end antiques are all sold on ebay ,
      I dare bet ebay traders of high class goods gross more than any outlet on oxford street
      though there are ebay shop doorway sellers who can only look in the window of high class traders and dream

    • Old Hand
      11 years ago
  • northumbrian
    11 years ago

    there are costs with any form of selling its the net profit that interests us

  • dodger65
    11 years ago

    Is there a workable strategy to start listing on .com to take advantage of their lower fees?
    Most of my market will soon be high priced clothes destined for USA and Japan.

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