eBays Latest Fee Increases--Is this the beginning of the end?

On January 13, eBay sellers received an unwelcome announcement from eBay. Fees were going up.

Partly due to our tendency to "skim" messages and partly due to the way in which the announcement was worded, the result was widespread panic and threats of mutiny.

Many sellers started to "boycott" eBay, and began taking their business to places like Yahoo auctions, and Overstock.com. After issuing another email "clarifying" the price increases, eBay finally sent everyone a "Message from Bill Cobb" on February 6.

Bill Cobb, who became President of eBay North America in December of 1004, stated that he'd been "taking it all in" and "thinking hard about how we can make sure eBay remains a fun, safe place to trade, and a prosperous home for our many dedicated sellers."

Cobb addressed the issue of fee increases, and concerns about customer support, trust and safety, and frequency of changes to the site.

Cobb also promised a number of improvements to customer service, a credit for store sellers and a reduction in the minimum insertion fees for auction style and fixed price listings. He even gave readers his email address and invited comments, promising to read every one of them!

The Bottom line here is that the most significant changes made will affect eBay Store owners. But Store items are offered at a price determined by the seller, so increased costs can be passed along to the buyer. This is what "real world" businesses do all the time. The cost of doing business rarely goes down and Business people learn to expect increases in overhead.

The reason for raising the "But it Now" listing fee is that eBay wants sellers to think harder about how they set prices in this category. Too many have been unrealistically high, which means merchandise doesn't turn over. It becomes "stale". eBay wants to see a fluid market, with quick turnover and fresh merchandise appearing all the time.

The Gallery image feature has gone up in price by about 30%, but the size of the image is being increased by 56%. Pictures sell products, and larger pictures mean that shoppers can see more details. I really don't see this as a bad thing.

If you haven't invested in eBay stock, now might be a good time (eBay intends to split shares on Feb.18). Investors are panicking over eBay's announcements, and their less than stellar 4th quarter 2004 performance in part due to major investments in China.

The dooms-dayers say the "bloom is off the eBay rose". I beg to differ. eBay is still the largest online auction venue, accounting for more volume than all of their competitors combined. There's no way eBay is going away, and it won't be long before sellers realize that business will go on as usual.

You can still make a great living on eBay, whether full or part time.

Carolyn Schweitzer is a retired dentist, eBay Powerseller, and ownner/editor of several websites. You can read the full article plus view eBay's price announcements and the letter from Bill Cobb at http://www.netbrainer.com/site/500041/page/ 473364

---

Five Tested Ways To Find The Perfect Drop Shipper

You've heard about it many times in recent months. Being... Read More

How To List Your Items On eBay

Listing your items on eBay can be very confusing if... Read More

Finding Antiques And Collectibles To Sell On eBay

Many people who decide to make a living selling collectibles... Read More

Fundraising Ideas Using eBay

Have you thought of using the online auction site eBay... Read More

Join the Home-Based Business Revolution

Greetings, Friend. So you've decided to go into business. Great.... Read More

Make Money Online: Learn To Sell On Ebay

The online auction site eBay is an excellent tool for... Read More

Selling on eBay - Have You Found the Magic Formula Yet?

Selling on eBay can be very profitable and a great... Read More

eBay: What Should I Sell?

There is an art to picking profitable products. It's not... Read More

Professional eBay Auctions Reap the Profits for Sellers

eBay offer an unbelievable amount of traffic for ANYONE wanting... Read More

Ten Sure Fire Ways To Lose Bidders

The way some auction sellers approach their auctions, it's clear... Read More

Buying Used Dell Laptops, PCs and Servers on eBay - How to be successful

Two years ago I needed a way to refresh more... Read More

Start Your Own Business: Sell Things on eBay

The popularity of online auction site eBay has been legendary.... Read More

Taxing eBay Part Deux

When my column on paying income tax on eBay profits... Read More

Search... Search... Search Your Way To eBay Cash!

One of the most valuable things in life is the... Read More

Profitable Paper Piecing on eBay -- Part 2

Basic Paper Piecing TipsHere are some tips that will help... Read More

Get Yourself A Piece of The eBay Pie

Ebay is without a doubt the greatest internet marketing phenomenon... Read More

The Benefits of Buying and Selling Locally

Shop at a flea market in Oaxaca, Mexico. Trade with... Read More

How Do You Find A Reliable Dropshipping Source?

A Dropshipper is someone who will anonymously send the goods... Read More

Multiple Income Streams on eBay within 30 Minutes!

POWERSELL Status, the secrets revealed.If like thousands of people you... Read More

Effective Online Car Sales on Ebay Motors

Remember back when selling online was a new experience? Dealers... Read More

5 Sure-Fire Ways to Make More Money on EBay

Have you ever dealt with a salesperson or a waiter... Read More

Profit through Other Peoples eBay Errors

There are many issues that influence how an eBay auction... Read More

How To Sell Internationally On eBay Without Risk

Many people just getting started on eBay have reservations when... Read More

Used Cars For Sale On EBay

There are thousands of used cars for sale on eBay... Read More

Drop Shipping Secrets and Sources Revealed

Unfortunately for those just breaking into the wholesaling business, drop-shipping... Read More

City Police Auctions of Personal Property and Autos

About City Police Departments AuctionsThe City Police Departments handle and... Read More

Your eBay Username - What Does It Say About You?

Have you tried to register a decent eBay username and... Read More

Be Realistic When Selling on eBay

As some of you know, I spent many years buying... Read More

What Ebay Can Teach Us About Success

I flew back to New York from Atlanta a few... Read More

Can You Really Make Money Selling New Release CDs & DVDs On eBay?

Being an active eBayer, I am often being asked about... Read More

A Picture Paints a Thousand Words and Creates Auction Euphoria on eBay

Ever since I sold my first item on ebay I... Read More

Rent A Coder & Other Service Auctions

You may be in the market for a new website.... Read More

Internet Auction Sites : Find Good Deals on Almost Anything

You can find good deals on almost everything you need... Read More