Tuesday, March 15, 2011

eBays new fees will screw us all

Earlier today I had a happy little post about eBay ending all this "variable listing fees" nonsense and making your first fifty items free monthly. What I failed to see was the fine, unbolded, unitalicized print saying eBay will be taking a portion of all money charged for shipping as well.

"FREE to list Auction-style up to 50 items a month—any start price—with FREE Buy It Now option starting April 19. Auction-style Final Value Fees apply to the total amount of the sale (including shipping)."


Now this is all fine and dandy for people who sell .99 items with $50 shipping fees in order to circumvent paying eBay's bloated fees but what about honest sellers who pay actual fees? We're about to get doubly screwed by this eBay/Paypal partnership.
  1. eBay will take a potion of shipping fees
  2. Paypal will take a cut for letting you accept payment
  3. Bidders won't want to bid on your stuff because your shipping is too high
  4. In order to keep shipping low costs of item prices will go up
This is going to be the end of international shipping. A large flat rate priority box costs $58.50 to ship: http://www.usps.com/prices/priority-mail-international-prices.htm and I've had people pay that if an item is difficult to find in their country.

Lets look at some numbers:
  1. $58.50 - Actual USPS charge for mailing box:
  2. $5.27 - eBay's Cut
  3. $2 - Paypal's Cut
  4. 12.43% - The percentage of shipping eBay/Paypal will eat up in fees
Suddenly I really miss Yahoo auctions.


Anonymous said...

And only the first 50 are free, if you list 100 items, you pay the same fees PLUS listing fees.