There’s been a lot of talk over the last few days on how the fee changes will impact sellers. There’s also a fair amount of confusion out there as to what the impact will be.
Quite frankly the was fiendishly complicated with many sellers not even realising that there is a difference between the Final Value Fees for an item sold on auction and the fees for selling the same item from a Fixed Price listing.
This was further complicated as the first tranche for auction fees (in most categories) was 8.75% up to £29.99 and yet for fixed price items fees started at 9.9% of the final selling price up to £49.99. Even the break points between fee tranches didn’t match.
This post is simply a comparison between the Final Value Fee you would pay under the existing fee structure depending on the category you sell in and the listing format you used and the .
There are some pretty steep fee increases in all categories with the exception of Media where the price of selling on eBay is unchanged. However as can be seen from the tables the sellers who are hardest hit are those with the highest average selling prices.
The reason sellers of high value items are affected the most is because under the old fee structure the higher the price of your item the smaller the percentage eBay charged in fees.
Typically for fixed price items this was 9.9% up to £49.99, 5.9% of £50 up to £599.99 and 1.9% of the portion of the final selling price over £600. The new flat Final Value Fees hide the increase from 1.9% which has risen to as much as 12% in CSA and 10% in Home & Garden.
Even in the Tech categories (which on the face of it appear to have had a huge fee reduction to just 3%) will be impacted by the loss of the fee tranches. Sellers of high value items will end up paying more than double under the new fee structure for items in excess of £1000.00.
Whilst no one will be in favour of the fee increases it’s important to understand how it will impact your business and exactly what fees you will be paying once the new structure kicks in. It’s time to re-evaluate your margins and make sure that your sale prices allow you to make a profit once all your costs including eBay fees have been accounted for.
Edited to add: If you’re looking for details of how the new eBay.com fee structure will affect your eBay fees then Scot Wingo of ChannelAdvisor has just published a detailed analysis.