eBay's Rate Changes

by Dave

eBay has changed their fee structure effective February 20th. Like any corporation worth its salt, they’ve tried to disguise a rate hike as a discount to sellers. What a screw.

They claim to have reduced the risk associated with selling by decreasing the insertion fees. To offset their loss, they’ve increased the final value fees. I calculated the break-even point of the new rates, which is $11.43. Any auctions ending below that price will be charged a fee that is slightly less than under the previous system; any about that price will be charged a higher fee. I made a chart to show some sample end prices and their associated fees, as well as the difference between the new and old system.

eBay Rate Comparison Chart

I’m guessing that eBay is going to come out ahead in this. A few pennies per auction might not seem like much, but, given the volume of auctions, those pennies are going to add up quick. I understand that companies up rates now and again, but I take offense when they try to disguise it as something that’s supposed to benefit me.

Some other changes are looming as well. One that I, as a seller, find particularly disturbing is that I will no longer be able to leave neutral or negative feedback for buyers: positive only. I assume it will be positive or nothing, but leaving no feedback seems like a pointless gesture as it doesn’t say anything about the buyer’s reliability, unless it somehow figures into their feedback rating (which I doubt is the case).

There are some positive changes as well, but they are outweighed by the negatives in my mind. Click here to see all the new stuff.