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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. December / 05 / 2019

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Treasury Announces Details Of Long-Term Securities Auctions  Nasdaq

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Treasury yields rise slightly as investors monitor US-China trade  CNBC

Netherlands to raise at least 900 million euros in first 5G auction - Reuters
Netherlands to raise at least 900 million euros in first 5G auction  Reuters

Looking For Property? DNR Public Land Auction Starts Tuesday - CBS Pittsburgh
Looking For Property? DNR Public Land Auction Starts Tuesday  CBS Pittsburgh

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Oil companies swap stakes in Mexico as government holds off on auctions  Nasdaq

Andrew Wyeth's work at auction in Hillsborough - WRAL.com
Andrew Wyeth's work at auction in Hillsborough  WRAL.com

Furniture, decor, equipment at East Towne Mall for sale in online auction - WVLT.TV
Furniture, decor, equipment at East Towne Mall for sale in online auction  WVLT.TV

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LiveAuctioneers Appoints Top Auction Industry Executive, Art Broker and Technology Entrepreneur Jared Green to Position of Senior VP of Strategic Accounts  PRNewswire

Labor of Love, cup auction come together - soprissun.com
Labor of Love, cup auction come together  soprissun.com

For Auctions, It’s ‘No Froth,’ but ‘Steady.’ That’s the New Normal. - The New York Times
For Auctions, It’s ‘No Froth,’ but ‘Steady.’ That’s the New Normal.  The New York Times

Rare early Macintosh computer sells at auction for $120K - WAFB
Rare early Macintosh computer sells at auction for $120K  WAFB

Vietnam introduces auction scheme for large-scale PV - pv magazine International
Vietnam introduces auction scheme for large-scale PV  pv magazine International

Do I hear $1,000? Auction of Hahnemann University Hospital equipment begins - WHYY
Do I hear $1,000? Auction of Hahnemann University Hospital equipment begins  WHYY

Retired U.S. Coast Guard Bramble sold at auction - Port Huron Times Herald
Retired U.S. Coast Guard Bramble sold at auction  Port Huron Times Herald

Record prices but dismal sell-through rates at Middle East auctions - The ClassicCars.com Journal
Record prices but dismal sell-through rates at Middle East auctions  The ClassicCars.com Journal

Pirates legend Bill Mazeroski putting personal memorabilia up for auction - TribLIVE
Pirates legend Bill Mazeroski putting personal memorabilia up for auction  TribLIVE

Hollywood Artifacts Take Center Stage at Julien’s Auctions - Barron's
Hollywood Artifacts Take Center Stage at Julien’s Auctions  Barron's

US treasury announces refunding auction for next week - ForexLive
US treasury announces refunding auction for next week  ForexLive

Contents of abandoned Arizona safe deposit boxes go up for auction - KTAR.com
Contents of abandoned Arizona safe deposit boxes go up for auction  KTAR.com

Hillsdale Auction to hold first Christmas event this Saturday - Hillsdale Collegian
Hillsdale Auction to hold first Christmas event this Saturday  Hillsdale Collegian

New York State's First Cannabis Auction - PRNewswire
New York State's First Cannabis Auction  PRNewswire

No minimum bid in upcoming Atlantic City auction - Press of Atlantic City
No minimum bid in upcoming Atlantic City auction  Press of Atlantic City

Bilbo Baggins' pipe up for auction by Julien's Auctions - TheOneRing.net
Bilbo Baggins' pipe up for auction by Julien's Auctions  TheOneRing.net

Pair of Moroccan Resort Villas Head to Auction - Mansion Global
Pair of Moroccan Resort Villas Head to Auction  Mansion Global

Auction of Tyngsboro hotel postponed after bankruptcy filing - Lowell Sun
Auction of Tyngsboro hotel postponed after bankruptcy filing  Lowell Sun

Pristine Copy Of First Marvel Comics Issue Auctions For $1.26 Million - DOGOnews
Pristine Copy Of First Marvel Comics Issue Auctions For $1.26 Million  DOGOnews

Petrobras supports new auction regime - BNamericas English
Petrobras supports new auction regime  BNamericas English

Nix Medical Center’s equipment heads to auction - San Antonio Express-News
Nix Medical Center’s equipment heads to auction  San Antonio Express-News

Rare Lamborghini to be offered at Scottsdale auction in January - KTAR.com
Rare Lamborghini to be offered at Scottsdale auction in January  KTAR.com

Long-dated JGB yields down after solid auction, curve flattens - Reuters
Long-dated JGB yields down after solid auction, curve flattens  Reuters

Jewelry, luxury vehicles on the block in next government auction - Mexico News Daily
Jewelry, luxury vehicles on the block in next government auction  Mexico News Daily

Fall Art Auctions See Significant Declines - The New York Times
Fall Art Auctions See Significant Declines  The New York Times

Record label rejected The Beatles' off these 1962 songs—now tape of the audition could sell for $90,000 - CNBC
Record label rejected The Beatles' off these 1962 songs—now tape of the audition could sell for $90,000  CNBC

Christmas Tree Fantasy auction Thursday - LocalNews8.com
Christmas Tree Fantasy auction Thursday  LocalNews8.com

Wright tree and wreath auction is tonight | Local News - Gillette News Record
Wright tree and wreath auction is tonight | Local News  Gillette News Record

GE in Salem auctions off equipment in wake of production shutdown - Roanoke Times
GE in Salem auctions off equipment in wake of production shutdown  Roanoke Times

The 'world's fastest UPS truck' has 850 horsepower and is now up for auction - Business Insider
The 'world's fastest UPS truck' has 850 horsepower and is now up for auction  Business Insider

Hitler's top hat up for auction in Germany - Reuters
Hitler's top hat up for auction in Germany  Reuters

This Season’s Auctions? The “Old Normal” Says Head of Citi Art Advisory - Forbes
This Season’s Auctions? The “Old Normal” Says Head of Citi Art Advisory  Forbes

Original Costumes From 1960s Series ‘Batman’ to Be Sold at Auction - Observer
Original Costumes From 1960s Series ‘Batman’ to Be Sold at Auction  Observer

Schumacher Ferrari F2002 becomes second-most expensive F1 car sold at auction | Formula 1® - Formula 1
Schumacher Ferrari F2002 becomes second-most expensive F1 car sold at auction | Formula 1®  Formula 1

Rare Gauguin Sells for $10.5 M. at Auction in Paris - ARTnews
Rare Gauguin Sells for $10.5 M. at Auction in Paris  ARTnews

Dallas Auction House Sells a Marvel Comic Book For $1.26 Million - Dallas Observer
Dallas Auction House Sells a Marvel Comic Book For $1.26 Million  Dallas Observer

Paul Rudolph’s Walker Guest House heads to Sotheby’s auction - Curbed
Paul Rudolph’s Walker Guest House heads to Sotheby’s auction  Curbed

Former St. Joseph Hospital building to be offered at auction - WNDU-TV
Former St. Joseph Hospital building to be offered at auction  WNDU-TV

U.S. Treasury to conduct small-value contingency auction of FRNs - Reuters
U.S. Treasury to conduct small-value contingency auction of FRNs  Reuters

Justin and Hailey Bieber Curate 17 Artworks for Online Charity Auction - HYPEBEAST
Justin and Hailey Bieber Curate 17 Artworks for Online Charity Auction  HYPEBEAST

YWCA Festival of Trees Auction and Reception is Tonight - SweetwaterNOW.com
YWCA Festival of Trees Auction and Reception is Tonight  SweetwaterNOW.com

Festival of Trees auction raises $15K for Easterseals - Parkersburg News
Festival of Trees auction raises $15K for Easterseals  Parkersburg News

Never-Before-Seen Photos from the Making of ‘2001: A Space Odyssey’ Now Up for Auction - IndieWire
Never-Before-Seen Photos from the Making of ‘2001: A Space Odyssey’ Now Up for Auction  IndieWire

Lost masterpieces by Frank Lloyd Wright are up for auction - Archinect
Lost masterpieces by Frank Lloyd Wright are up for auction  Archinect

Hemp Haven: An Auction and Market Bring the Plant Into the Mainstream - Memphis Flyer
Hemp Haven: An Auction and Market Bring the Plant Into the Mainstream  Memphis Flyer

Christie's Autumn auctions in Hong Kong total HK$2.63 billion - Christie's
Christie's Autumn auctions in Hong Kong total HK$2.63 billion  Christie's

No Lincoln artifacts auction, foundation extends $9M debt - KTVI Fox 2 St. Louis
No Lincoln artifacts auction, foundation extends $9M debt  KTVI Fox 2 St. Louis

Sotheby’s to Auction The Beatles’ 1962 Audition Tape for Decca Records - Barron's
Sotheby’s to Auction The Beatles’ 1962 Audition Tape for Decca Records  Barron's

Should I buy a car at an auction? - Boston.com
Should I buy a car at an auction?  Boston.com

Auction to be held selling memorabilia from baseball Hall of Famer - WPXI Pittsburgh
Auction to be held selling memorabilia from baseball Hall of Famer  WPXI Pittsburgh

$100 Million for a Painting? Not This Auction Week - The Wall Street Journal
$100 Million for a Painting? Not This Auction Week  The Wall Street Journal

Orland Park Police Department To Hold Public Auction - Patch.com
Orland Park Police Department To Hold Public Auction  Patch.com

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Amish Acres Set for February Auction  Inside INdiana Business

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These Ultra Rare Rolexes Are About to Hit Auction, Here’s What You Need to Know About Them  Highsnobiety

Hempfield golf course hosting auction as it goes out of business - TribLIVE
Hempfield golf course hosting auction as it goes out of business  TribLIVE

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From startup to $1.5B: ACV Auctions becomes Buffalo's first 'unicorn'  Buffalo News

City of Broken Arrow selling surplus equipment in online auction - KTUL
City of Broken Arrow selling surplus equipment in online auction  KTUL

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Equines for Freedom Holiday Auction  PAHomePage.com

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SEVEN Concours, Powered by Silverstone Auctions, Brings the Riyadh Car Show Auction 2019 to Global Bidders via Proxibid  Associated Press

Auction Houses Find Singular Works for Fall Sales - Barron's
Auction Houses Find Singular Works for Fall Sales  Barron's

BID For Kids – Auction Closes December 11th - WBIW.com
BID For Kids – Auction Closes December 11th  WBIW.com

Winebaum’s iconic newspaper boy up for auction - Seacoastonline.com
Winebaum’s iconic newspaper boy up for auction  Seacoastonline.com

Festival of Trees auction takes place on Friday - Zanesville Times Recorder
Festival of Trees auction takes place on Friday  Zanesville Times Recorder

The First-Ever Marvel Comic Book Has Sold at Auction for $1.26 Million - Observer
The First-Ever Marvel Comic Book Has Sold at Auction for $1.26 Million  Observer

This nirvana for nerds & collectors is hidden in the middle of a York, Pa. industrial park - York Daily Record
This nirvana for nerds & collectors is hidden in the middle of a York, Pa. industrial park  York Daily Record

Curacao court calls for auction of seized Venezuelan crude - S&P Global
Curacao court calls for auction of seized Venezuelan crude  S&P Global

Union County Farmland Goes for $6M in Auction - Inside INdiana Business
Union County Farmland Goes for $6M in Auction  Inside INdiana Business

This UPS truck has 850 horsepower and it's up for auction - Autoblog
This UPS truck has 850 horsepower and it's up for auction  Autoblog

Participate in the Denver Nuggets Holiday Auction! - Nuggets.com
Participate in the Denver Nuggets Holiday Auction!  Nuggets.com

Crown Vics, Saddle Featured In Loudoun Surplus Property Auction - Leesburg, VA Patch
Crown Vics, Saddle Featured In Loudoun Surplus Property Auction  Leesburg, VA Patch

Charlie Sheen's 'Major League' Memorabilia Items Up for Auction - TMZ
Charlie Sheen's 'Major League' Memorabilia Items Up for Auction  TMZ

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Former ACV Auctions employees files legal complaint against company - Buffalo Business First  Buffalo Business First

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Lincoln City Parent Group hosts annual auction this weekend  The News Guard

Murray Will Auction Stadium Series Equipment To Benefit Delta Foundation - NHL.com
Murray Will Auction Stadium Series Equipment To Benefit Delta Foundation  NHL.com

Poland plays catch-up with launch of major renewable energy auction - Reuters
Poland plays catch-up with launch of major renewable energy auction  Reuters

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Sacramento artist Thiebaud’s ‘Blueberry Custard’ fetches $3.225 million at auction  Sacramento Bee

NASCAR UPS Truck of Race the Truck Commercial Pulled from Auction - Car and Driver
NASCAR UPS Truck of Race the Truck Commercial Pulled from Auction  Car and Driver

SWLA natives to auction cleats as part of NFL’s ‘My Cause, My Cleat’ initiative - KPLC
SWLA natives to auction cleats as part of NFL’s ‘My Cause, My Cleat’ initiative  KPLC

Temple Bnai Israel to present Winter Wonder Auction - Norwich Bulletin
Temple Bnai Israel to present Winter Wonder Auction  Norwich Bulletin

Art Market 2019: NYC's Biggest Art Auction Sales To Tumble - Bloomberg
Art Market 2019: NYC's Biggest Art Auction Sales To Tumble  Bloomberg

National Teachers Hall of Fame radio auction total now almost $25,000 and counting - kvoe.com
National Teachers Hall of Fame radio auction total now almost $25,000 and counting  kvoe.com

Maker’s Mark, glass artists teaming up for one-of-a-kind bottles - Lexington Herald Leader
Maker’s Mark, glass artists teaming up for one-of-a-kind bottles  Lexington Herald Leader

Hoboken Shelter To Hold Annual Winter Auction - Hoboken, NJ Patch
Hoboken Shelter To Hold Annual Winter Auction  Hoboken, NJ Patch

Palatial Beach Estate in a Thailand Beach Resort Up For Auction - Mansion Global
Palatial Beach Estate in a Thailand Beach Resort Up For Auction  Mansion Global

ACV Auctions closes on $150 million in venture capital, the largest single round in Buffalo history - Buffalo Business First - Buffalo Business First
ACV Auctions closes on $150 million in venture capital, the largest single round in Buffalo history - Buffalo Business First  Buffalo Business First

Exclusive: Failed Exxon talks left Petrobras stranded for auctions - sources - Reuters
Exclusive: Failed Exxon talks left Petrobras stranded for auctions - sources  Reuters

Artist Peter Max’s late wife Mary’s jewelry is heading to auction - Page Six
Artist Peter Max’s late wife Mary’s jewelry is heading to auction  Page Six

Paris auction offers chance to step into Napoleon's shoes - Reuters
Paris auction offers chance to step into Napoleon's shoes  Reuters

Original Star Wars trilogy is center of next prestigious Sotheby’s auction - The Verge
Original Star Wars trilogy is center of next prestigious Sotheby’s auction  The Verge

Big oil stuns Brazil in back-to-back auction flops - Reuters
Big oil stuns Brazil in back-to-back auction flops  Reuters

Rare Mozart portrait flies above presale estimate at Paris auction - Reuters
Rare Mozart portrait flies above presale estimate at Paris auction  Reuters

Most of Boulder Beer's Equipment Goes Up for Auction - Westword
Most of Boulder Beer's Equipment Goes Up for Auction  Westword

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