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eBay Seller Release – UK Fee Changes

By Chris Dawson July 30, 2013 - 10:37 am

The bad news is that eBay will start to charge fees on the total cost to buyers – i.e. fees charged on the sale price plus postage.

The good news is reduced final value fees, capped fees in some categories, more free listings for eBay shops sellers and reduced auction insertion fees for everyone.

Final Value Fees from 4th September 2013

New fee caps in many categories
Fees are now charged on postage

Category

Current Final Value Fee

Final Value Fee from September

Clothes, Shoes & Accessories 12% 11%
Collectables 10% 9%
Consumer Electronics 5% 5% with a FVF Cap of £10
Furniture, Bath, Holidays & Travel 10% 10% with a FVF Cap of £40
Media 9% 9%
Tyres 8% 6% with a FVF Cap of £15
Vehicle Parts & Accessories and all other Electronics Vehicle Parts & Accessories 8%
and all other Electronics 5%
8%
Watches 12% 11% with a FVF Cap of £50
All other categories 10% 10%

Insertion Fees from 4th September 2013

Flat rate auction insertion fees
Anchor Shop fee reduced from £349.99 to £249.99
More free listings for Basic and Featured Shops

Shop Subscription

Monthly shop Fee

Free Fixed Price Listings

Additional Fixed Price Listings

Sub 99p Auction Fee

£1 and over Auction Fee

No Shop £0 0 30p 10p 30p
Basic Shop £19.99 200 10p 5p 15p
Featured Shop £59.99 1200 5p 5p 15p
Anchor Shop £249.99 Unlimited Included 5p 15p

Finally don’t forget that from the 1st of August Top Rated Seller discounts are changing.

Top Tip: Move your P&P costs into your item selling price as the new eBay Top-rated seller discounts will be based on that price

That’s the fee changes that affect eBay UK listings out of the way. Now read our post on International Cross Border Trade as eBay have a ton of great news to share there include fee reductions.

  • Jon
    4 years ago

    Seems to me that charging fees on the postage costs will discourage international selling.

    • Alex
      4 years ago

      HAHAHA, as usual, eBay give a ton of useless benefits that only really help a microscopic minority (I.E.: if you offer free post, next day shipping, a crazy returns policy, etc…. – none of which actually makes much economic sense for most sellers) but at the same time eBay justify these pathetic so called benefits against their ongoing policy of raising seller costs a bit more (yet again).

      As per usual, most professional sellers benefit nothing but will certainly get charged more each month. And eBay tell us its an improvement? BS – this is simply eBay creating even greater profits for their shareholders.

      In my case it will cost me at least £100 more each month. Add to that the recent £10 increase in shop fees (ohhh they did give me £3 worth of free listings!!), add to that the halving of TRS final value fee discount last year (from 20% to 10% – which has cost me at least £25 each month since). And all this from a company that makes billions each year in profits. And then they try to tell us that all this is a benefit…..?

      Same old same old – just another way to justify screwing us all for a little bit more each month.

    • Martin Davies
      4 years ago

      Really Alex? From what I’m looking at with my business the costs will go down slightly.
      Some businesses like yours will pay more, some will pay less. Pretty much like most changes ebay make, not everyone benefits in the same way and some do lose out at times.

      We ignore some of what ebay come up with, our returns policy is more than they require so no changes there. Service is more than they require.
      We follow our own company policies, not another company’s policies.

    • Alex
      4 years ago

      I am actually quite astonished by your reply.

      I too provide a higher level of service and returns policy than the minimum standards required by eBay, but that’s not the point.

      This is eBay yet again driving up seller costs and increasing their own profits whilst masquerading these changes as a benefit when the reality is that these changes will cost the majority of sellers more and only actually benefit a few.

      eBay have done their calculations and know full well that the cost of offering these benefits will be much less that the amount of increased revenue. That’s why they have done this. IMO it is a sly way of charging more each month whilst offering little.

      Ask yourself this: When was the last time eBay made a change that saved sellers money without compromising their profits?

      This is a pattern that keeps repeating and I personally believe that in this time of financial downturn, increased postage costs, increased overheads, smaller margins, etc, it is now time that eBay put a cap on their profits.

      In 2012 eBay generated Q4 profits of $4 billion and total 2012 profits of $14 billion, up 21% on the previous year. Shares increased in value by about 40% with dividends of about 5%. All of this is typical of their year-on-year growth for the past few years.

      Do eBay really need to increase profits further and to such a degree? I think it is time eBay recognised that it is tough for businesses at present and their methods of increasing profit are making it much harder.

      eBay presents itself as being a “community”. Do eBay really need to make this much? Maybe it is time that eBay took more of a “community” view and helped sellers by reducing fees and putting a cap on profits.

    • John
      4 years ago

      Last time eBay changed their fees, they “killed” many business, specially the ones selling high value items.

      I made some comments that time, and was also invited on BBC Radio to make some comments. Many on here slated me for not being forward thinking enough etc.

      I have struggled to survive on eBay ever since that time, but kept my head above water, also working another job.

      However the new policies on eBay from for new fees are GREAT news.
      For me it seems eBay understood they made a major error last time, and the new fee structure has gone a long way to address this.

      Ok, they want to include Shipping as part of the fees, I have offered free shipping on domestic sales for many years already.

      The new fee structure sees massive reductions in fees on many categories, the CAPS in 4 categories is a step in the right direction.
      In addition the value for many with shops have increased. (Featured shops)

      This is a massive climb down for some people in the company, and to see they can correct a mistake is commendable.

      I can honestly not see how somebody can make such a big fuss about loss of Postage percentage, this will represent small values on most items, and can mostly be implemented in the price of the item.

      I used much special delivery, which for domestic is the most expensive cost around £8, 10% of this is 80p, of course it does depend on what you are selling, but should not be an issue in my opinion, this was introduced last time eBay changed their fees on eBay.com. It was a much lesser blow than UK was hit with last time.

      I am looking forward to 4.th of September, and hope I can get my business back up and running like it used to.

  • paddy
    4 years ago

    It seems that the fee cap is only in certain categories which is a bit disappointing.

    • Alex
      4 years ago

      In addition the FVF will in future be based on the total cost to the buyer, including postage and packaging. YES, In future FVF will apply to both item and postage!!!

      You can read about this at:
      http://sellerupdate.ebay.co.uk/autumn2013/fee-changes

      I wonder if it is actually legal to charge comission on Royal Mail postage?

      Aside from legal points, how much extra will all this cost you?

      DO THE MATHS

  • mw
    4 years ago

    The answer is simple. Increase both the domestic and International postage costs by around 12 to 15% to cover the actual cost taken by ebay. Seems like suicide on ebay’s part to me as it has the potential to make ebay look less desirable than the high street or to dealing directly with the sellers website, neither of which have this fee hidden in their costs. Time will tell how it will work out.

  • paddy
    4 years ago

    I don’t see how they will be able to charge me fees for delivery of heavy and bulky items. Most of the time I speak to the customer and take a card payment and the checkout isn’t even completed without having to send an invoice.

  • radroach
    4 years ago

    I’m hoping that the charge for additional fixed price listings with a featured shop is actually going to remain at 5p, rather than the 10p rate in the chart above?

    10 p I think is for those with a basic shop.

    • Jon
      4 years ago

      Just phoned eBay as I nearly had a heart attack when I read it’s going up to 10p for a featured shop It’s not. It’s staying at 5p

  • mark
    4 years ago

    The postage idea is just to give ebay a massive pay rise and they claim is wanted by customers i asked my customers and all said why would we want you to charge us £12 per item free shipping so £24 for two when before it was £10 plus £2 shipping and two were £20 with combined shipping. Most sellers are saying they will mark as dispatched but it will not be to keep the 1 day dispatch correct.

    Apparently ebay will tell you what colour van your business must have in the next wave of changes

  • Adam
    4 years ago

    Can you confirm they are shaving £100 off the anchor store price from £350 to £250?

    • Alex
      4 years ago

      Read the small print and then do the maths.

  • Leigh
    4 years ago

    This seems to be Robin Hood territory in reverse….and is it actually legal to charge a final value fee on postage. I wonder if when I next buy at an auction house they’ll charge me an extra buyers premium on the taxi fare home !!!

  • Jon
    4 years ago

    Here’s a link showing 5p for featured shops. I’m sure Chris will revise & correct it when he sees this.

    http://sellerupdate.ebay.co.uk/autumn2013/fee-changes

  • the only issue I have here is how/when do they charge postage

    I sell with a combined postage deal of £1.95 for one to 10 items

    if a customer purchases 10 items

    do I get charge 20p for the £1.95 they pay

    or £1.95 for the 10 lots of £1.95

    which wipes out my postage charge??

    at present we pay fvf on an item if its paid for or not – so how will they apply this postage fvf fee ??

    and I cant go free postage as loads of items priced at £0.99 will go up to £2.99 and if a customer buys 10 they pay nearly £30 instead of neary £12!!!!!

  • Gemma
    4 years ago

    EBay have tried to push sellers into offering free postage because Amazon offered free postage, and have some misguided impression that free postage is required in order to compete with them. Only now, Amazon have realised that free postage isn’t sustainable, and have started charging postage orders under £10! It will interesting be to see how eBay handle this given the strength of opinion. It is an unnecessary unsustainable step that will only result in negative publicity.

  • Alex
    4 years ago

    .
    Free postage is a great idea!!

    I spend ££££ each month on postage and couriers. Its my single biggest expense.

    I’d love to have free postage and would sign up now. Can someone please tell me where I can get it???

    • Martin Davies
      4 years ago

      Its built into the price when you get it.
      TANSTAAFL – there aint no such thing as a free lunch, you pay for it in other ways.

      Have you looked into charging your buyers for postage? From what I gather ebay are not forcing anyone to have inclusive postage neither are they forcing anyone to have seperate postage.

    • Alex
      4 years ago

      No, not forcing anyone but I think for most sellers, if they actually look VERY carefully at the forthcoming changes and consider what they mean and will cost, and what the benefit is, I am sure most will agree that these changes are not attractive. If you study the detail you will probably also conclude that your monthly invoice will increase. This may not bother you but it does me.

      Also worth noting that in selling this to us eBay have drawn a comparison with Amazon who are actually about to scrap free post as it is losing them money hand over fist.

      Its probably no coincidence that eBay are implementing this during the holiday season – a kind of “quietly slip it past everyone when most are preoccupied with other things”. Look at how few comments there has been on TameBay so far!

      I have no doubt that most sellers do not yet fully appreciate the implications of these changes but they will notice an increase in their invoice and that’s when there will be uproar.

  • ex Amazon seller
    4 years ago

    Having successfully managed Amazon out of our business, eBay will be the next to go. Sales for Vanity Profit for sanity.

  • dan
    4 years ago

    i have a question (sorry if its a silly one!)

    i have just done the maths and i have upgraded to a featured shop that comes with 1200 free listings,

    does these 1200 listings count as in 1200 INDIVIDUAL listing pages (eg item numbers) or does the 1200 count as in i could list 12 listings with a quantity of 100 units each?

    thanks

    • 4 years ago

      Hey Dan, it’s 1200 item numbers :D

      Each listing can have as high a quantity as you can get stock plus each listing can also be a multivariation listing if you wish.

      e.g. you could have a listing with 200 variants each of which has a quantity of 100 which would be 20,000 products and it would still only count as one listing out of your 1200 free allowance.

    • dan
      4 years ago

      hi, thanks for that! good to know :)

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