I'm a diehard thrifter and garage sale addict! I love the thrill of the hunt! And I love making CASH from trash so I also resell on eBay and Etsy. I share my successes to inspire you ... and my failures so you learn from my mistakes. Please join me on this wild and crazy ride of making cash from trash!

Friday, July 1, 2011

Selling on eBay: New eBay Fees

I’ve been getting reminders from eBay and others that eBay’s new fees are just around the corner for store subscribers.  So, I thought I’d do some number crunching and create some comparisons with the existing (old) fees and the new ones.

I took a random invoice from a couple months ago and plugged in the new fees to see what I would have paid if the new fees and discounts were already in effect.  Here’s a breakdown of the original invoice:

 

Original Invoice

Insertion Fees

$113.95

Final Value Fees

$167.82

Subscription Fee (Store)

$49.95

Discount (Bronze)

$(8.39)

 

$323.33

The table below shows what my fees would have been with the new fee structure, with and without the 20% TRS discount.

TABLE 1 – New Fees

SCENE 1

SCENE 2

Insertion Fees

$ 113.95

$ 113.95

Final Value Fees

$ 240.00

$ 240.00

Subscription Fee (Store)

$ 49.95

$ 49.95

20% Discount (TRS)

$ -

$ (48.00)

 

$ 403.90

$ 355.90

Difference

$ 80.57

$ 32.57

If the new fees had been in place I would have paid $240 in FV fees instead of $167.82.  Without the 20% TRS discount, I would have paid an additional $80.57.  Ouch!!  But the 20% discount means a discount of $48 … and that’s a good chunk of change that I would get to keep!

Table 2 shows what the fees would be if I eliminated auctions and instead used Fixed Price listings.  Each fixed-price listing costs 5-cents vs. 25-cents for an auction listing.

TABLE 2 – New Fees -Fixed Price Only

SCENE 4

SCENE 5

Insertion Fees

$ 36.90

$ 36.90

Final Value Fees

$ 316.33

$ 316.33

Subscription Fee (Store)

$ 49.95

$ 49.95

20% Discount (TRS)

$ -

$ (63.25)

$ 403.18

$ 339.93

Difference

$ 79.85

$ 16.60

Wow, my insertion fees would drop dramatically, from $113.95 to only $36.90!  However, FV fees would go up because eBay charges a higher percentage for fixed-price listings.  Without a discount, there is hardly a difference.

But, with the 20% TRS discount, I would only be paying an additional $16.60 with the new fee structure.  Although FV fees would be higher, the 20% discount would be applied to those higher FV fees and result in a $60+ discount!

If I continue as I have, I estimate that over the next 6 months I will be paying an additional $400-$500 with the new fee increase.  Clearly getting Top Rated Seller status is more important than ever before.  Obviously, the only way eBay will continue to work for me is if I qualify for – and maintain – that 20% discount.

I’ve been scrutinizing my product line.  Heavy items and items with low profit margins just aren’t going to work anymore.   It’ll be interesting to see what happens over the next few months and how all this will play out, especially when eBay introduces their new shopping cart later this year.  eBay’s new fees for store subscribers become effective on Wednesday, July 6.

5 comments:

  1. Thanks for posting this. I've been thinking about some things that may work on ebay, but I'm not sure that there will be much left over.

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  2. Im still on the fence about free shipping. Not sure if it is worth it. Thanks for the info. I should make charts like yours to see what I will end up paying

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  3. I just was awarded TRS status and I wasn't even trying! I don't have a store, but Ebay keeps trying to get me to open one. I list less than 50 auction items per month, so my insertion fees are basically zero. My items are small, but I do charge for shipping, usually $5.25 or less, so the final value fee on shipping is 50 cents or less, or the equivalent to what the insertion fees used to cost. So this fee change is not that big of a deal for me. I must be doing something right because I keep getting emails from Ebay congratulating me on how well I'm doing.

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  4. Thanks for posting this! I am looking into other selling sites. I have been doing well on eBay, but the fees are nickel and diming away all my profits. I'm switching to free shipping, but have raised all my prices to compensate for that. So far, it hasn't affected my sales. We'll see.

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  5. I think it is great that you explain eBay to ppl like me who dont know anything!

    I have a question If I list about 30 Items a week that's 120 Month, do you think I need a store?

    I have been sticking to the 50 free a month but Im am half way threw that this month already, and still have things to list.

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