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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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Titanic prop that saved Rose and sparked debate fetches $700k at auction - NPR
  1. Titanic prop that saved Rose and sparked debate fetches $700k at auction  NPR
  2. This controversial 'Titanic' prop sold for more than $700000 at a memorabilia auction  WVTM13 Birmingham
  3. The ‘Titanic’ Door That Could’ve Saved Jack Just Fetched $718,750 at Auction  Robb Report

Karl Lagerfeld’s final residence sells for $10.81M at auction - New York Post
Karl Lagerfeld’s final residence sells for $10.81M at auction  New York Post

Crypt near Marilyn Monroe and Hugh Hefner could fetch $400,000 at auction - CNN
Crypt near Marilyn Monroe and Hugh Hefner could fetch $400,000 at auction  CNN

Crypt near Marilyn Monroe, Hugh Hefner to be auctioned off for $400,000 - USA TODAY
Crypt near Marilyn Monroe, Hugh Hefner to be auctioned off for $400,000  USA TODAY

A crypt near these two famous stars could go for $400000 at auction - PennLive
A crypt near these two famous stars could go for $400000 at auction  PennLive

Meissner's Auction House petroliana auctions draw collectors - Times Union
Meissner's Auction House petroliana auctions draw collectors  Times Union

Report: NFL will auction 2024 Christmas games - NBC Sports
Report: NFL will auction 2024 Christmas games  NBC Sports

NBA Star Ben Simmons' $17.5 Million Los Angeles Mansion Heads To Auction - Forbes
NBA Star Ben Simmons' $17.5 Million Los Angeles Mansion Heads To Auction  Forbes

Treasury Auctions Attract Better Demand. This Is What Has Changed. - Barron's
Treasury Auctions Attract Better Demand. This Is What Has Changed.  Barron's

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Ponte Vedra Beach home sells for over $7.5 million in auction  ActionNewsJax.com

Fashion Can Go for Eye-Popping Prices at Auction. Who's Buying It? - The Business of Fashion
Fashion Can Go for Eye-Popping Prices at Auction. Who's Buying It?  The Business of Fashion

Karl Lagerfeld’s Paris Apartment Sold at Auction for $10.8 Million - The New York Times
Karl Lagerfeld’s Paris Apartment Sold at Auction for $10.8 Million  The New York Times

Dave auctions the blazer off his back; raises $1000 for Hastings Public Schools Foundation - NTV
Dave auctions the blazer off his back; raises $1000 for Hastings Public Schools Foundation  NTV

Elite Auctions offers 6.7-acre property Summit at Silverleaf - Daily Independent
Elite Auctions offers 6.7-acre property Summit at Silverleaf  Daily Independent

Chenango County auction businessman arrested on arson, fraud charges - WBNG
Chenango County auction businessman arrested on arson, fraud charges  WBNG

Men's Volleyball “Excite” Jersey Auction - University of Hawai'i at Manoa Athletics - University of Hawaii Athletics
Men's Volleyball “Excite” Jersey Auction - University of Hawai'i at Manoa Athletics  University of Hawaii Athletics

Superman’s Debut Issue Could Set a Comic Book Record at Auction - Barron's
Superman’s Debut Issue Could Set a Comic Book Record at Auction  Barron's

This controversial "Titanic" prop has spawned decades of debate — and it just sold for $700,000 - CBS News
This controversial "Titanic" prop has spawned decades of debate — and it just sold for $700,000  CBS News

ACV Auctions supporting women leadership - Buffalo News
ACV Auctions supporting women leadership  Buffalo News

The Door From ‘Titanic,’ Too Small to Fit Two People, Sells Big at Auction - artnet News
The Door From ‘Titanic,’ Too Small to Fit Two People, Sells Big at Auction  artnet News

'Titanic' Door Prop That Saved Rose (Sorry, Jack) Sells for $718750 - The New York Times
'Titanic' Door Prop That Saved Rose (Sorry, Jack) Sells for $718750  The New York Times

Scuba diver finds Barbie in river, viral doll now up for auction - WLWT Cincinnati
Scuba diver finds Barbie in river, viral doll now up for auction  WLWT Cincinnati

Infamous 'Titanic' Wood Panel Fetches Thousands at Auction - Entrepreneur
Infamous 'Titanic' Wood Panel Fetches Thousands at Auction  Entrepreneur

'Titanic' prop door sold for over $700,000 – Deseret News - Deseret News
'Titanic' prop door sold for over $700,000 – Deseret News  Deseret News

Sotheby's Auction Warhol Basquiat Untitled 1984 Art - HYPEBEAST
Sotheby's Auction Warhol Basquiat Untitled 1984 Art  HYPEBEAST

Motorsports Hall of Fame of America launches major auction fundraising campaign with Lunch with GM President Mark ... - RACER
Motorsports Hall of Fame of America launches major auction fundraising campaign with Lunch with GM President Mark ...  RACER

NFL Christmas Day Games to Come Up for Auction - Front Office Sports
NFL Christmas Day Games to Come Up for Auction  Front Office Sports

Auction notes: Awards from GM Financial & anniversary at America's Auto Auction Charleston - Auto Remarketing
Auction notes: Awards from GM Financial & anniversary at America's Auto Auction Charleston  Auto Remarketing

How you can get Gordie Howe memorabilia in online charity auction - Detroit Free Press
How you can get Gordie Howe memorabilia in online charity auction  Detroit Free Press

Local Players Dominate Brazil $3.6 Billion-Power Line Auction - Bloomberg
Local Players Dominate Brazil $3.6 Billion-Power Line Auction  Bloomberg

Wisconsin coin collection fetches almost $900,000 at auction | Top Stories | wkow.com - WKOW
Wisconsin coin collection fetches almost $900,000 at auction | Top Stories | wkow.com  WKOW

‘Titanic’ Door that Saved Rose (But Not Jack) Fetches Six Figures at Auction - ARTnews
‘Titanic’ Door that Saved Rose (But Not Jack) Fetches Six Figures at Auction  ARTnews

NC auctions off abandoned safe deposit boxes - WFMYNews2.com
NC auctions off abandoned safe deposit boxes  WFMYNews2.com

Infamous 'Titanic' door sells for staggering €663000 at auction - Euronews
Infamous 'Titanic' door sells for staggering €663000 at auction  Euronews

Rare Babe Ruth rookie card from 1916 — once a store freebie — could fetch $500K at auction - New York Post
Rare Babe Ruth rookie card from 1916 — once a store freebie — could fetch $500K at auction  New York Post

Iconic 'Titanic' Door Just Sold for $718,750 at Auction - My Modern Met
Iconic 'Titanic' Door Just Sold for $718,750 at Auction  My Modern Met

Stack's Bowers & Ponterio Offers Eclectic Spring Hong Kong Auction Full of Rarities - Greysheet Daily News
Stack's Bowers & Ponterio Offers Eclectic Spring Hong Kong Auction Full of Rarities  Greysheet Daily News

More Outperformance as Treasuries Fret Over Auctions - Mortgage News Daily
More Outperformance as Treasuries Fret Over Auctions  Mortgage News Daily

April's abandoned and court-forfeited vehicle auction this Tuesday - Wyo4News
April's abandoned and court-forfeited vehicle auction this Tuesday  Wyo4News

Charlie Russell's The Broken Rope highlights Scottsdale Art Auction | Scottsdale Independent - Daily Independent
Charlie Russell's The Broken Rope highlights Scottsdale Art Auction | Scottsdale Independent  Daily Independent

Sotheby’s to Sell Painting by Andy Warhol and Jean-Michel Basquiat - Observer
Sotheby’s to Sell Painting by Andy Warhol and Jean-Michel Basquiat  Observer

The Now Evening Auction at Sothebys Hong Kong on artnet - Artnet
The Now Evening Auction at Sothebys Hong Kong on artnet  Artnet

Tilda Swinton Bedtime Story Read and Josh O’Connor Porridge-Making Lesson Among Auction Lots Raising Money for Gaza - Variety
Tilda Swinton Bedtime Story Read and Josh O’Connor Porridge-Making Lesson Among Auction Lots Raising Money for Gaza  Variety

Controversial 'Titanic' Prop Door Sells For $700K At Auction - The Daily Wire
Controversial 'Titanic' Prop Door Sells For $700K At Auction  The Daily Wire

A Gorgeous Lexus LFA With Only 268 Miles Is Up for Grabs - Robb Report
A Gorgeous Lexus LFA With Only 268 Miles Is Up for Grabs  Robb Report

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Sotheby's Doubles Down on Athletic Collectibles With 'Sports Week' Auctions  Investopedia

Props from ‘Titanic’ and ‘Indiana Jones’ Earn Six Figures at Auction $525,000 - Barron's
Props from ‘Titanic’ and ‘Indiana Jones’ Earn Six Figures at Auction $525,000  Barron's

‘Titanic’ driftwood ‘door’ that saved Rose sells at auction for $700K - The Washington Post
‘Titanic’ driftwood ‘door’ that saved Rose sells at auction for $700K  The Washington Post

Auction brings more than $7.5 million for Ponte Vedra Beach home | Jax Daily Record - Jacksonville Daily Record
Auction brings more than $7.5 million for Ponte Vedra Beach home | Jax Daily Record  Jacksonville Daily Record

Unclaimed property auction scheduled for March 27 - CBS News
Unclaimed property auction scheduled for March 27  CBS News

Winning Offshore Wind Auctions in a Changing Market - BCG
Winning Offshore Wind Auctions in a Changing Market  BCG

Young auctioneer continues family legacy – The Daily Texan - The Daily Texan
Young auctioneer continues family legacy – The Daily Texan  The Daily Texan

Iconic 'Titanic' door prop that saved Kate Winslet sells at auction for over $700K - The National Desk
Iconic 'Titanic' door prop that saved Kate Winslet sells at auction for over $700K  The National Desk

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Central Business District Property Going Up for Auction  Biz New Orleans

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Large Collection of St. Louis Neon Signs and Memorabilia to be Sold at Auction  nextstl.com

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Diamonds Smash Estimates at Sotheby's Paris Auction  Rapaport

Lady Gaga, Amy Winehouse, Martin Luther King Jr.’s Letters to Tony Bennett Being Offered at Auction - Variety
Lady Gaga, Amy Winehouse, Martin Luther King Jr.’s Letters to Tony Bennett Being Offered at Auction  Variety

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BTG fund wins Brazil power transmission auction's largest project  Nasdaq

Bradford Council-owned Thornton Cemetery lodge sold at auction - BBC.com
Bradford Council-owned Thornton Cemetery lodge sold at auction  BBC.com

Pickens Auctions Annual Spring 24 Equipment Sale at Payne County Expo Center - Visit Stillwater, Oklahoma
Pickens Auctions Annual Spring 24 Equipment Sale at Payne County Expo Center  Visit Stillwater, Oklahoma

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Copy Of Ken and Roberta Williams' Mystery House Set To Fetch Thousands At Auction  Time Extension

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Citigroup Inc. Has $256000 Stock Position in ACV Auctions Inc. (NASDAQ:ACVA)  Defense World

'Titanic' floating door prop that saved Rose — but sadly not Jack — auctioned off for startling amount - New York Post
'Titanic' floating door prop that saved Rose — but sadly not Jack — auctioned off for startling amount  New York Post

Artworks stored at taxpayer expense heads to auction block - The Houston Landing
Artworks stored at taxpayer expense heads to auction block  The Houston Landing

Refiner Citgo set to open data room for bidders tied to court auction - Reuters
Refiner Citgo set to open data room for bidders tied to court auction  Reuters

Lady Gaga and Amy Winehouse's letters to Tony Bennett heading to auction - NME
Lady Gaga and Amy Winehouse's letters to Tony Bennett heading to auction  NME

This controversial ‘Titanic’ prop sold for more than $700,000 at a memorabilia auction - CNN
This controversial ‘Titanic’ prop sold for more than $700,000 at a memorabilia auction  CNN

TMCS purse auction raises funds for Lunch On Us program - Miami Valley Today
TMCS purse auction raises funds for Lunch On Us program  Miami Valley Today

One of Michael Jackson's iconic 'Thriller' jackets is up for auction - NME
One of Michael Jackson's iconic 'Thriller' jackets is up for auction  NME

Infamous 'Titanic' floating door sells for more than $700000 in Texas - Chron
Infamous 'Titanic' floating door sells for more than $700000 in Texas  Chron

1981 BMW M1 Could Fetch $550,000 at Auction - BMWBLOG
1981 BMW M1 Could Fetch $550,000 at Auction  BMWBLOG

Controversial 'Titanic' door sells for over $700K at auction - New York Daily News
Controversial 'Titanic' door sells for over $700K at auction  New York Daily News

Raleigh land linked to subdivision plans sold in foreclosure auction - Triangle Business Journal - The Business Journals
Raleigh land linked to subdivision plans sold in foreclosure auction - Triangle Business Journal  The Business Journals

2024 fantasy baseball draft sheet: Downloadable auction values and stats for 650 players - The Athletic
2024 fantasy baseball draft sheet: Downloadable auction values and stats for 650 players  The Athletic

Wood panel from Titanic fetches more than $700k at Dallas auction - The Dallas Morning News
Wood panel from Titanic fetches more than $700k at Dallas auction  The Dallas Morning News

Treasury Auction Relief Rally and Month-End Support - Mortgage News Daily
Treasury Auction Relief Rally and Month-End Support  Mortgage News Daily

Tomb near Marilyn Monroe, Hugh Hefner up at auction - Washington Times
Tomb near Marilyn Monroe, Hugh Hefner up at auction  Washington Times

'Titanic' door sells for over $700k at auction - Entertainment Weekly News
'Titanic' door sells for over $700k at auction  Entertainment Weekly News

Disney concept art, audio-animatronics available for bidding during upcoming auction - KTLA Los Angeles
Disney concept art, audio-animatronics available for bidding during upcoming auction  KTLA Los Angeles

Letters from five former presidents to Tony Bennett are going up for auction - The Hill
Letters from five former presidents to Tony Bennett are going up for auction  The Hill

Mixed Performance. Data Hurt. Auction Helped. Little Changed - Mortgage News Daily
Mixed Performance. Data Hurt. Auction Helped. Little Changed  Mortgage News Daily

JM Wood Holds Spring 2024 Auction in Montgomery, Alabama : CEG - Construction Equipment Guide
JM Wood Holds Spring 2024 Auction in Montgomery, Alabama : CEG  Construction Equipment Guide

CBI auctions +$254 million in forex on Thursday - Shafaq News - Shafaq News
CBI auctions +$254 million in forex on Thursday - Shafaq News  Shafaq News

How Julien’s Auctions Leads the Booming Market in Celebrity Memorabilia - The New Yorker
How Julien’s Auctions Leads the Booming Market in Celebrity Memorabilia  The New Yorker

Auction of Adventure Bound boats gets delay, big minimum bid increase due to liens - Juneau Empire
Auction of Adventure Bound boats gets delay, big minimum bid increase due to liens  Juneau Empire

Chile launches first transmission auction of 2024 - BNamericas English
Chile launches first transmission auction of 2024  BNamericas English

Sotheby's To Hold Rough Diamonds Watch Sale In April - HODINKEE
Sotheby's To Hold Rough Diamonds Watch Sale In April  HODINKEE

Tony Bennett Auction To Feature Cartier, Rolex Watches - HODINKEE
Tony Bennett Auction To Feature Cartier, Rolex Watches  HODINKEE

Forrest Gump Nike Cortez Auction $57,000 - Complex
Forrest Gump Nike Cortez Auction $57,000  Complex

Dorothy's Recovered 'Wizard of Oz' Ruby Slippers Head to the Auction Block - Observer
Dorothy's Recovered 'Wizard of Oz' Ruby Slippers Head to the Auction Block  Observer

Behind the scenes of Pennsylvania’s Treasury vault auction - ABC27
Behind the scenes of Pennsylvania’s Treasury vault auction  ABC27

SOLD! 230-acre Iowa century farm brings nearly $4 million at auction - Successful Farming
SOLD! 230-acre Iowa century farm brings nearly $4 million at auction  Successful Farming

Titanic 'door' prop that kept Rose alive sells for $718,750 - BBC.com
Titanic 'door' prop that kept Rose alive sells for $718,750  BBC.com

Tobey Maguire's Black Symbiote Suit From 'Spider-Man 3' Is Up for Auction - HYPEBEAST
Tobey Maguire's Black Symbiote Suit From 'Spider-Man 3' Is Up for Auction  HYPEBEAST

New England Offshore Wind Auction Attracts Four Bidders | Offshore Wind - Offshore WIND
New England Offshore Wind Auction Attracts Four Bidders | Offshore Wind  Offshore WIND

Titanic 'Door' Sells Big at Auction, Reignites Major Debate | TIME - TIME
Titanic 'Door' Sells Big at Auction, Reignites Major Debate | TIME  TIME

‘Titanic’ Door That Jack Tragically Couldn’t Fit on Nabs More Than $718,000 at Auction - Rolling Stone
‘Titanic’ Door That Jack Tragically Couldn’t Fit on Nabs More Than $718,000 at Auction  Rolling Stone

Libby's Property in Paterson Set for Auction | Paterson, NJ News TAPinto - TAPinto.net
Libby's Property in Paterson Set for Auction | Paterson, NJ News TAPinto  TAPinto.net

Auction Calendar 3-29-24 - AgUpdate
Auction Calendar 3-29-24  AgUpdate

African art collection at center of Harris County controversy linked to Commissioner Rodney Ellis will be auctioned next week - KTRK-TV
African art collection at center of Harris County controversy linked to Commissioner Rodney Ellis will be auctioned next week  KTRK-TV

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