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 |
||||
|
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.
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