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NeedToUseYou -> RE: Hotmail and ebay (8/26/2008 5:24:28 PM)
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Off Off topic... but in regards to ebay.
Ebay is going to die here shortly, coming september 16 they are changing there fee structure, and going to charge a whopping 15% FVF(Final Value Fee) on fixed price listings, in most categories. Of course they are making fixed price listings .35 for a month. But the numbers don't work out in the sellers favor if you already had a high sell through rate, effectively it's another FEEBAY increase.
What this will do since it is so cheap to list but much more expensive to sell (15% of sale price in fees), is cause prices to be set higher, on fixed price listings, because it is worth the wait (.35 for a whole month), and you need to sell it for more to cover the
FVF(15%). It will also drown out and disadvantage the regular auction format. As you can list for .35 for a month fixed price, at any price you want, compared to, paying more if you listed an auction 4 times, without a guaranteed final sale price.
Ebay is trying to reform itself into an Amazon style marketplace. My opinion is it is because of law suits brought against it because some sellers like to sell knockoffs, and they are actively pushing the small time sellers out.
Anyway, I'm done on ebay after the 16 of september, we are opening up a local store front after do a test run this weekend. I've been sick of ebay for quite some time actually. They've raised prices percentage wise year after year, and now, they are soliciting big manufacturers to directly sell on ebay, and giving them massive discounts, that smaller sellers don't get.
My advice don't invest in ebay, it's going to be a slow death as small sellers finally break out the spread sheet.
Sorry for the hijack, but ebay really has fucked everyone but the big sellers, and those that price there stuff to high already, as the only way the new fee structure will benefit you is if you had to relist like three times. That would in most cases indicate you were asking to much, or used poor title, and description, most likely though asking to much.
It does amaze me how companies self-destruct, by their own hand.
Now, most likely ebay will have a couple good revenue quarters before the downward spiral begins, because it'll take that long for sellers to A. sell off ebay inventory. B. Find a new place to sell. C. Just decide it's not worth it anymore. But during that time, they'll be raking in the new 15% FVF. So, I guess.
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