Thursday, January 04, 2007

eBay hikes fees yet again, it's every six months now

Got this beauty in the mail this morning:


Dear wuapinmon,

An important part of any business strategy is the regular evaluation of pricing structure. From time to time, we make pricing changes to correct unhealthy dynamics in the eBay marketplace, as was the case last July. Typically, however, we make changes on an annual basis at the beginning of the year.Today, I'm here to tell you about fee adjustments for and eBay Motors which go into effect on January 30, 2007.

Let me say that, while we believe these changes are modest, we consider any changes that may impact our sellers with great care. These adjustments are the result of careful analysis and we believe they're the right thing to do to keep the marketplace strong for our and eBay Motors sellers.

Core Listing Fees: Auction-Style & Fixed Price*

Fee Type Item Price New Fee Current Fee
Insertion Fee Starting Price: $1.00 - $9.99 $0.40 $0.35
Final Value Fee Selling Price: $25.01 - $1000.00 3.25% 3%

*Does not impact Store Inventory Listings.

More to come in 2007

Looking ahead at the new year, it's never been more important that eBay deliver value through our marketing investments, product initiatives, and Trust & Safety strategies. Times have changed from 11 years ago when we were a small innovative idea on the Internet. Quite frankly, some of the problems demanding our attention are more complex. But what inspires me every morning--and what I hope inspires you, too--is that the opportunities for eBay and its Community to succeed by celebrating what makes us unique have never been greater.

Later this month, I'll be addressing a group of eBay sellers who will be here in person in the San Jose area, and I'll be sharing some of our plans and priorities for the coming year. My keynote speech will be available via a recorded Webcast for our whole Community (more details will be available soon) and we'll be following the event with more announcements on specific initiatives. I think you'll find we're taking a surprisingly fresh look at some of the old challenges, and I'm excited about the road ahead.

On behalf of everyone at eBay, I wish you all a very Happy New Year.


Bill Cobb
President, eBay North America


This man is so full of shit, I can't stand him. Not that I agree with it, but I can understand why this happened:

When you take away someone's livelihood, people can do crazy things.

The worst part about this fee hike, and ALL of their many fee hikes, is that they provide NO improvement in service or sales rates. They make their money off listing fees, so it's in their interest for me to have to list my item multiple times. I have gone from selling $2-$4k a month on ebay to a couple of hundred dollars a month. Well, at least they haven't f-ed up yet.

Look at their profit margins:
They are making so much money that they can't spend it all. They are sitting on $3.2 billion with zero debt. Their stock price is "down" despite a market capitalization of $42 billion, so they have to do things to prop up their stock price, so instead of buying back stock, or something along those lines, they piss on their clients and get a boost in the stock price:

They have to do it. Between Insiders and Institutions, a full 81% of the company's stock is tied up. They have become fat and lazy, and their service to their sellers sucks. I sincerely hope that a competitor can arise. Google needs to take the lead here and crush these unrighteous stewards.

If the fee increases coincided with increased sales and profits for sellers, I would have no problem....but they don't. eBay reverses decisions all the time. They support something and then end it. When they began listing store inventories in regular searches, my sales ABSOLUTELY SOARED, and then after a month, when their profit went down because people weren't having to relist items, they ended the stores search feature, and then four months later, raised store prices, and essentially quit supporting stores all together.

I hate eBay. I hate it oh so very much. It will be tough to get a competitor going though, because eBay has successfully sued to stop comparison search engines from pulling up info off their site and cross listing it with the same items for sale on other websites. They claim that these search engines are effectively "trespassing" on their servers, as if such a thing were even possible.

Sadly, the courts have sided with eBay...for now.

1 comment:

Anonymous said...

you probably shouldn't blame poor eBay as they try to compete in such a cuthroat business nor for their copying the "seek and destroy" business plan created by Microsoft. It's those damn lawyers:P
Mike Bauer