ebay dying? whats the solution?

FACEBOOK = FREE

GUMTREE = FREE

EBAY = APROX 20% FEES INCLUDING FORCED PAYPAL FEES AS OPTION NO ONE WANTS.

 

IS EBAY DYING? IS IT THE NEXT BLOCKBUSTER VIDEO STORE? IRELEVANT?

 

WITH AMAZON COMING TO AUSTRALIA THEY WILL BLOW EBAY OUT OF THE WATER.

 

IM NOT SAYING EBAY HAS TO HALVE ITS FEES, IM SAYING IT MUST!!!!!!!!

 

SEEING A COMPANY SIMPLY PRETEND NOTHING IS WRONG AND TO NOT LISTEN TO THE SELLERS CRYING OUT LOUD IS VERY SAD. ITS JUST LIKE BLOCKBUSTER, THEY WERE OFFERED THE CHANCE TO BUY NETFLIX BACK IN 2000. BUT THEY CHOOSE NOT TO AND DIDNT WANT TO FACE REALITY AND THOUGHT IT WAS A FAD, NOW EBAY IS BEING FACED WITH THE NETFLIX TAX, THE IRONY. REALITY IS COMING.

 

LOWERING FEES IS A START, WHAT ELSE HAS TO HAPPEN TO GET EBAY BACK ON TRACK?

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Re: ebay dying? whats the solution?

Not quite true, most of the shopping centres will demand a percentage of sales from shopkeepers, so if the sales go up they do pay more for their rent/lease.

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Re: ebay dying? whats the solution?

eBay and the A site have coexisted in the US & UK for a number of years, that doesn't mean A isn't having an impact, or that it won't when it arrives here, but logic dictates that it is unlikely to be the proverbial falling sky for eBay here, either.

 

Insertion fees are a little lower in the US, but final value fees are (on average) higher than they are here, even in the face of direct competition from A. For example, the US has no difference in FVF between each store package, so a category that attracts a FVF of 9.15% (their highest) won't be any lower with a more expensive store package like it is for Aus stores (sellers can qualify for a modest discount if they meet some strict criteria, though).  

 

When A do arrive, if they maintain the same fee percentage here that they do OS, eBay's fees will actually look cheaper by comparison (I applied and was approved to sell on A.com, but didn't go through with it in the end because I was less than keen on some of their site policies. From memory the monthly fees was around US$50 (about $75 per month at today's rates), then 20-odd % FVF. It's worth mentioning that includes payment processing fees as they have their own payment processing system. However, eBay and PayPal combined get a bit under 12% of my revenue, and that is worked out on all fees I pay, including the odd BX1 postage label, and my store sub, while A's 20% FVF is on revenue before you add on monthly fees and the like, so - for me at least - eBay is already nearly half the price A would be). 

 

A also have a track record of dubious practices, eg copying unique products and undercutting their original sellers - I doubt they'd find a lot of value in my products, but they're hardly the morally superior alternative to eBay. Most of their shenanigans affect sellers, though, and I doubt there would be a high percentage of people who would refuse to shop there because of things like that (if any would at all).

 

Shopping online is hardly a novelty anymore, and I daresay a good percentage of Aussies have already shopped on one A site or another already, so their arrival here may come with high expectations and a lot of fanfare, but I believe the reality will be a little more low-key rather quickly.  Then again, maybe I just don't get it and I'll be eating those words in a year or so, either way it will be interesting to see how it all plays out. 

 

 

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Re: ebay dying? whats the solution?


@fred_foofighter wrote:

@porcelain_dolls_by_me wrote:

Not sure where you get the 20% cost from as I pay a total of around only 12%

 

I take the vierw of comparing the fee to sell on EBay to that if I was t have a physical retail shopfront.  The outgoings (rent etc) for a retail shopfront, as a percentage of sales would be considerably higher - around 20%.  Makes the Ebay charge look prettty good?


With B&M the outgoings (Rent) are usually a fixed cost, with eBay they are a variable cost - BIG difference.  You double your sales in a B&M shop the rent stays the same, double your eBay sales and your FVF double.


That is a big difference...the only time I pay any fees is when I'm actualy earning money on eBay.  In a B&M store you owe rent for the week even if you didn't sell anything.



NEVERMIND ON TROUBLES!!! LET'S DO HOBBY!!!
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Re: ebay dying? whats the solution?


@tazzieterror wrote:

@fred_foofighter wrote:

@porcelain_dolls_by_me wrote:

Not sure where you get the 20% cost from as I pay a total of around only 12%

 

I take the vierw of comparing the fee to sell on EBay to that if I was t have a physical retail shopfront.  The outgoings (rent etc) for a retail shopfront, as a percentage of sales would be considerably higher - around 20%.  Makes the Ebay charge look prettty good?


With B&M the outgoings (Rent) are usually a fixed cost, with eBay they are a variable cost - BIG difference.  You double your sales in a B&M shop the rent stays the same, double your eBay sales and your FVF double.


That is a big difference...the only time I pay any fees is when I'm actualy earning money on eBay.  In a B&M store you owe rent for the week even if you didn't sell anything.


And on eBay if you have a store you pay a monthly fee (rent).  And if you only do auctions you will pay more fees the more you turnover.

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Re: ebay dying? whats the solution?

20% ?????????

 

eBay fees      - 9.9% capped at 400.

PayPal fees  - 2.6% + 30c.

 

Rather than eBay reducing fees, I prefer eBay to fix the site so it attracts more buyers.

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Re: ebay dying? whats the solution?


@kopenhagen5 wrote:

20% ?????????

 

eBay fees      - 9.9% capped at 400.

PayPal fees  - 2.6% + 30c.

 

Rather than eBay reducing fees, I prefer eBay to fix the site so it attracts more buyers.


The OP may have meant 20% of the sale price of the item. If so that would be common for many sellers including myself. The reason being that ebay also charge commision on the postage component of the sale. A $15 item sent in a 3 kg satchel with a post and pack cost $15 ( total $30 ) equels 20% of the item sale price, before paypal fees. Once paypal takes 2.6% of the $15 item price and $15 postage cost you are actually looking at losing around 25% in commission costs.

 

As mentioned on another thread ebay and paypal fees take over 20% of the sale price of items sold in my main store. ie. for every $10,000 worth of items I sell, over $2000 goes to ebay and paypal in fees.

 

Having said that, I accept this as the cost I pay for using the platform and accessing ebays customer traffic.

 

The impending GST charge on ebay fees is turning the screws another notch on my business viability and re- confirming my decision to build another non internet based business. I am not registered for GST on my ebay businesses. A few years ago when our main store looked like surpassing the $75,000 turnover threshold, we split the business into two seperate stores with a different ownership structure, negating the need to register for GST. I already run one GST registered business and could not stomach the paper work associated with another GST registration. 

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