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5 commentsTuesday, June 16, 2009

eBay Starts "5 Free Insertion Fees" Promotion

Savings don't always add up

If there's one thing that's sure to turn the heads of bargain-seekers, it's the word "free," and a new eBay program capitalizes on this fact by waiving some insertion fees.  Unfortunately, there is a catch or two, and the auction company doesn't seem likely to win over many of its critics with this move.

eBay Fees
 

eBay first announced the "5 Free Insertion Fees Every 30 Days" idea about a month ago.  On the front end, it was exactly as advertised, which was nice enough.  Sellers have never enjoyed forking over cash when their products don't change hands.

The trouble came when sellers noticed that a final value fee of 8.75 percent (or $20 - whichever's less) could actually cause them to owe eBay more money than usual under certain circumstances.

Now, as the program rolls out, it appears that nothing's been changed.  Sellers just need to do the math carefully and consider opting out of the new fee structure by using an eBay or third party listing tool.

Value Fees
 

Still, eBay executives have their fingers crossed that the change will result in increased participation.  Lorrie Norrington, president of eBay Marketplaces, said in a statement, "By eliminating the upfront costs of selling on eBay, we hope this new structure will encourage all sellers - new, occasional or experienced - to use the offering as a cost-effective way to sell on our site and earn a little extra cash."

News Tags: ecommerce, auctions, eBay
About the author:
Doug is a staff writer for WebProNews. Visit WebProNews for the latest eBusiness news.

Ebay

I have heard of seller complaints on ebay for 2 years but tried to stay on ebay. But they just do not welcome smaller sellers like me. Fees, changes, bad buyers can insult and say what they wish and you cannot retaliate with a negative feedback, etc etc WOW it is one nightmare.

With effect from today, I am taking my business elsewhere and I am currently writing to all me past clients about my migration away from ebay.

I did the math

Hi, I did some calculations and realize that it can be a good and a bad thing. To simplify I assumed that the starting price is in the same range as the final value. So up to 45$ the new fees are advantageous, between 45$ and 65$ is about the same. Between 65$ and 450$ the new fees can cost you up to 7.60$ more than the old fees... For 450$ and up, it's a real good deal.

So if you plan to sell an item between 65$ and 450$, you better using a listing tool.

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