EBay Lowers Fees, Changes Feedback and Gives Seller Discounts

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AuctionBytes Blog
News and insight focusing on
ecommerce and the online auction industry
by Ina Steiner, Editor of AuctionBytes.com

January 29, 2008

EBay Lowers Fees, Changes Feedback and Gives Seller Discounts

By: David Steiner

Tue Jan 29 2008 029:47:51

Looks like there will be a mixed bag in the announcements at this morning's Ecommerce Forum. Along with giving Seller Discounts for FVFs, eBay will be decreasing listing fees across the board for both auction and fixed-style listings, and increasing FVFs. Big changes are coming in Feedback, as sellers will no longer be able to leave negs or neutrals for Buyers. Let's look at everything separately…

Fees:
Here are the changes to listing fees which will be announced today:

Seller Discounts:

PowerSeller fee discounts

PowerSellers in the United States or Canada will start getting Final Value Fees discounts on April 2008, based on their detailed seller ratings (DSRs) for the last 30 days. Discounts will apply to sales on or after February 20, 2008.

PowerSeller fee discounts are our way of recognizing and rewarding sellers who consistently provide excellent customer service on eBay. Because detailed seller ratings (DSRs) enable buyers to rate specific aspects of their transactions - item as described, communication, shipping time, and shipping and handling charges - these ratings provide the best measure of customer satisfaction and the best way for eBay to identify good sellers. Your DSRs also give you a complete picture of how customers rate your performance and what you can do to improve. Learn more about detailed seller ratings (DSRs) and best practices for maintaining high DSRs.

Requirements to qualify

You qualify for the PowerSeller fee discounts if you:

    * Are a member of the United States or Canadian PowerSeller program, and
    * Have maintained excellent detailed seller ratings (DSRs) over the last 30 days in all four areas - item description, communication, shipping time, and shipping and handling charges. All four of your DSRs must be equal to or greater than 4.6, or 4.8 for deeper discounts.

How it works

    * If you are a PowerSeller and all four of your detailed seller ratings (DSRs) for the past 30 day period are 4.6 or higher, you qualify for a 5% discount on Final Value Fees
    * If you are a PowerSeller and all four of your detailed seller ratings (DSRs) for the past 30 day period are 4.8 or higher, you qualify for a 15% discount on Final Value Fees

If you sell exclusively in the Motors Vehicles categories:

    * The 30-day detailed seller rating (DSR) requirement applies to item description and communication ratings only. Transactions in motor vehicle categories are not rated on shipping time and shipping and handling charges since vehicle shipping is typically arranged by the buyer.
    * PowerSeller fee discounts apply to Transaction Services Fees for your sales in Motors Vehicles categories.

eBay sites that qualify

If you are a US or Canadian PowerSellers, your Final Value Fees and/or Transaction Services Fees for sales on eBay.com, eBay Motors, eBayExpress.com and eBay.ca qualify for the PowerSeller discounts.
------

I'll look at the feedback changes in another post. This is a lot to absorb for sellers - look over all the changes carefully to see how it affects your business. We'll be speaking with John Donohoe later today, so if you have any specific questions, post them here before noon, and we'll try to incorporate the best ones in our interview.

Comments (149) | Permalink

Readers Comments

EBay Lowers Fees, Changes Feedback and Gives Seller Discounts

by: Chump Change

Tue Jan 29 08:20:13 2008

Ask him why discounts only apply to powersellers? Because I only sell a certain $ amount I am not capable/deserving of being rewarded for good customer service?

EBay Lowers Fees, Changes Feedback and Gives Seller Discounts

by: Cory MacRae

Tue Jan 29 08:32:09 2008

Although I am in the UK, these will hit us soon enough!

The "free" gallery and slightly lower FVF fees are more than replaced by the increase in FVF, particularly in the Shop listing format.

The removal of a seller's right to leave Negative or Neutral feedback simply means that there will be a massive number of poor buyers who can now leave their own nasty comments with no fear of reciprocation from a seller. Under this scheme, how are PS (or others) supposed to keep their DSR up at a discount level?

EBay Lowers Fees, Changes Feedback and Gives Seller Discounts

by: Ray Sterling

Tue Jan 29 08:36:00 2008

This cannot be serious? That Sellers CAN'T LEAVE NEGATIVES or NEUTRALS? This proposal is so stupid, so mindless, that it deserves little comment, save to say that IT HAD BETTER NOT HAPPEN!

EBay Lowers Fees, Changes Feedback and Gives Seller Discounts

by: ebay gets a big raise

Tue Jan 29 08:40:54 2008

As usual ebay gives themselves a huge raise. eBay gets, if I did my math right this early in the morning, a 55% increase in fees for an item inserted into auction-stlye at .99 and sold for $24.99. Old cost $1.51 and new $2.39 with no frills.

EBay Lowers Fees, Changes Feedback and Gives Seller Discounts

by: dturnersan

Tue Jan 29 08:41:56 2008

10 years on eBay down the tubes as far as selling goes if I will no longer have the ability to leave neutral or negative feedback for buyers. I do not like to leave that kind of feedback for anyone, and seldom have resorted to it, but the ability to do so has helped keep both sides of the transaction honest. It also encourages buyers to work things out before flipping a seller off. Buh bye eBay. Thanks for the impetus to get off my hiney and build up my own website.

EBay Lowers Fees, Changes Feedback and Gives Seller Discounts

by: bonni

Tue Jan 29 08:44:34 2008

Is this only for the U.S. site, or is it going to be for other countries, as well?

EBay Lowers Fees, Changes Feedback and Gives Seller Discounts

by: Jennifer

Tue Jan 29 08:49:22 2008

Did we EVER get screwed as sellers! The marketplace can NOT handle a 40% increase in fees on low dollar items. And sellers can't handle that high of an increse.
Does this ever ruin a lot of businesses including mine!

EBay Lowers Fees, Changes Feedback and Gives Seller Discounts

by: chump change

Tue Jan 29 08:53:40 2008

Why do high fraud sellers, drop shippers, with the greatest numerical quantity of negative feedbacks,receive discounts? They are predominatly power sellers.

EBay Lowers Fees, Changes Feedback and Gives Seller Discounts

by: jankramer

Tue Jan 29 08:57:45 2008

Watch their stock crash with this rubbish! Another seller's strike in the offing? Anyone can now buy 3-4 low cost items from their competition and leave a negative without any worries of feedback abuse. Next thing, competitors will have to pay more FVF and you can screw them in both pricing and feedback! Ebay plays dirty and makes the field clear for all those who play dirty. More power to those with exaggerated shipping, more power to blackmailing buyers who will not return item and still insist on refund. Perhaps this is why Meg quit? This actually makes even her look good!

EBay Lowers Fees, Changes Feedback and Gives Seller Discounts

by: chump change

Tue Jan 29 08:58:09 2008

What qualifications does Mr. Donohoe have to operate a retail business? Does he have any actual hands on experience in aquiring merchandise, packaging, shipping, or accurate description of merchandise? Does Mr. Donahoe have daily interaction with customers (like myself) as I do with my buyers?

EBay Lowers Fees, Changes Feedback and Gives Seller Discounts

by: Yikes

Tue Jan 29 08:59:24 2008

Wow that's a big fee increase for sellers. Why is the article titled ''Ebay Lowers Fees'' when they are raising fees? Its a big increase when I plug some sample numbers in my calculator.

EBay Lowers Fees, Changes Feedback and Gives Seller Discounts

by: jankramer

Tue Jan 29 09:04:45 2008

THE EBAY=-PAYPAL SUREFIRE SCAM. YOU CAN'T LOSE, THEY CAN'T WIN

STEP I: buy item from your competition
STEP II: leave a real horrible negative for that jerk
STEP III: file ''not as described'' on paypal and return item to claim money back. Paypal never investigates those, they simply tell buyer to return item.
STEP IV: repeat STEP I with another identity
STEP V: Laugh!

EBay Lowers Fees, Changes Feedback and Gives Seller Discounts

by: Bob

Tue Jan 29 09:05:26 2008

Well this is just great. Now's the perfect time for those who don't like certain sellers to leave their mark. If ebay doesn't think there is jealousy and competition among sellers, they're kidding themselves. Now it's easy to "buy" something from a seller you don't like just to leave a negative. Seller's got no recourse. wait till ebay starts getting tons of emails and requests for feedback removal now.

EBay Lowers Fees, Changes Feedback and Gives Seller Discounts

by: Nedra

Tue Jan 29 09:07:15 2008

To say a seller can't leave feedback is absolutely wrong. We sellers are also buyers. The sellers are taking a beating from some buyers already from eBay's Stars Program. There are things completely out of the sellers control. Maybe eBay needs to buy the USPS and make the mail move better and faster. Get real eBay. It's time you put some thought into programs you implement across the board.

EBay Lowers Fees, Changes Feedback and Gives Seller Discounts

by: trsgirl2000

Tue Jan 29 09:08:35 2008

First off, not being able to leave a negative or a neutral for a buyer means that deadbeats will SOAR!
I use immediate payment for my auctions, but thought of removing it, since e-bay and pay-pal (for their outrageous fees) cannot seem to keep the system working. My sales go up and down by huge amounts, depending on when the system is working, and when pay-pal is down.
Why wouldn't I be able to leave negative for someone who refuses to return an item but leaves a negative?? That's moronic!
ALL my items are returnable for a full refund, but I STILL get the occasional retard who leaves a neg because the item is broken, duuuooh. Oh yeah, and return shipping IS PAID.
And the seller ratings for shipping DO count for discounts, so that blows it for almost everyone, the most anybody can get is 5% off.
I think it's time for all the GOOD sellers to find a BETTER venue, and get going on it ASAP!
The people who PAY for e-bay should be the ones who get taken care of.
Apparently they think this is the big ISSUE.
The ISSUE, dopies at e-bay is TRUST AND SAFETY.
Buyers take off when they get burned, pure and simple. The sooner they realize this, the better.
It has nothing to do with negative feedback for non-payment????
I will very likely close my business after 6 years, with 8150 feebacks, 99% good, thanks to this!

EBay Lowers Fees, Changes Feedback and Gives Seller Discounts

by: Jennifer

Tue Jan 29 09:09:26 2008

Well, I just did the math and now will revise my comments.... :)
In a $9.99 listing we will save 5 cents bottom line with the new fees. And the fact that gallery is free, our bottom line profit will increase not decrease.
Fees today: $1.27 for a $9.99 auction with a gallery photos.
New Fees: $1.22

EBay Lowers Fees, Changes Feedback and Gives Seller Discounts

by: Yikes

Tue Jan 29 09:10:26 2008

Looks to me like the feeback issue is being thrown in the mix to take the sellers attention away from the real issue - MUCH HIGHER FEES

EBay Lowers Fees, Changes Feedback and Gives Seller Discounts

by: Bob

Tue Jan 29 09:11:15 2008

How come there isn't a panel of buyers and sellers that meet or conference call with ebay officials when policies are set? Wouldn't it be prudent to hear from the people that made them all billionaires?

EBay Lowers Fees, Changes Feedback and Gives Seller Discounts

by: procrastinator

Tue Jan 29 09:11:26 2008

How can you possibly give this title to what amounts to an increase in fees?

And it isn't a simple change to feedback. Without it being a 2 way street the whole system has become meaningless.

EBay Lowers Fees, Changes Feedback and Gives Seller Discounts

by: no

Tue Jan 29 09:17:02 2008

Don't fall for corporate spin - they are RAISING their final value fees for much more than the reduced listing fees.

The only way we (people) pay less is if our items don't sell; great business model!

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