Is eBay Store fees are they to high to compete in todays market? (08/16/2011)

eBays fixed fee are they too high especially when you also take in to account your PayPal or Merchant fee for processing the transaction?

Below is the current Fixed Fee structure for eBay:

Fixed price format final value fees for Stores
(Based on the total amount of the sale, including the cost of the item, shipping, and any other fees a seller may charge, excluding any sales tax)

Total cost to the buyer

Electronics*

Clothing, Shoes and Accessories, Motors Parts & Accessories

Books, DVDs & Movies, Music, Video Games

All other categories

Item not sold

No fee

No fee

No fee

No fee

$0.99–$50.00

7.0% of the total cost to the buyer

10.0% of the total cost to the buyer

13.0% of the total cost to the buyer

11.0% of the total cost to the buyer

$50.01–$1000.00

7.0% of the initial $50.00, plus 5.0% of the remaining balance ($50.01–$1,000.00)

10.0% of the initial $50.00, plus 8.0% of the remaining balance ($50.01–$1,000.00)

13.0% of the initial $50.00, plus 5.0% of the remaining balance ($50.01–$1,000.00)

11.0% of the initial $50.00, plus 6.0% of the remaining balance ($50.01–$1,000.00)

$1,000.01 or more

7.0% of the initial $50.00, plus 5.0% of the next $50.01–$1,000.00, plus 2.0% of the remaining balance

10.0% of the initial $50.00, plus 8.0% of the next $50.01–$1,000.00, plus 2.0% of the remaining balance

13.0% of the initial $50.00, plus 5.0% of the next $50.01–$1,000.00, plus 2.0% of the remaining balance

11.0% of the initial $50.00, plus 6.0% of the next $50.01–$1,000.00, plus 2.0% of the remaining balance

 

*This category includes Consumer Electronics, Computers & Networking, Cell Phones & Smartphones, PDAs and Pocket PCs, Video Game Systems, Pro Audio Equipment, Cameras & Photo, and Car Electronics.

So as you can see eBay starts by adding a minimum of 7% fees to any sale.  I know that eBay deserves some fees, but in a day when margins are already slim what can a re-seller do. Clearly eBay is already reaping the benefit of  a listing fee, a closing fee, a store front monthly fee, and a PayPal transaction fee.  So with all these fees what do you think?

I know that it is hard for us to compete, until customers begin to value service over price our business will never be the same.

Please feel free to comment and add your 2 cents because it will not cost you anything to sound off.

A market fact brought to you by the techies at www.end2endsupport.com and Antivirus software found at www.gotavirusbug.com.

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