eBay Fee Change on the Horizon?

December 12, 2007

eBay is a publicly traded company. What this means is that eBay really only answers to one master – the stockholder. And what do stockholders want? A good return on their investment, as they want to make money!

Because of this master that eBay must answer to, they are constantly trying to figure out ways to increase revenues. Or, at the very least, maintain their revenues so that the stock prices don’t tank.

As all eBay Sellers know, one of the ways that eBay tries to keep up their revenues is by adjusting the fees that they charge you for the pleasure of doing business on their website. It looks like they may be up to the same old game, albeit with a twist, with some eBay fee changes in store for us in 2008.

In a recent post on his blog (which is one of our recommended blogs, Scot Wingo discussed what seems to be the new eBay fees model that is being tossed around.

Apparently, now that eBay has worked their “magic” on improving the buying experience, it is time for them to play with the fees structure. Word has it that the new fee structure will be to charge less up front (listing fees) and more on the back end (final value fees).

There is talk about the listings fees being reduced to next to nothing, with the final value fees being increased to make up the difference. In other words, you will not necessarily being paying more overall in fees, you will be paying them at a different time then you currently do (less up front, more once a sale is made).

Scot really goes into great detail about how this may or may not affect eBay’s bottom line and what it potentially could do to the number of listings that are on eBay. Only time will tell if it is a good move, or yet another eBay misstep.

It is a fascinating read and we can hardly wait to see what eBay does. Or, more importantly, what affect the fee restructuring has on the eBay landscape.

What affect do you think this will have on your bottom line?

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2 Comments

Comment by turtie
2007-12-12 21:32:38

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Comment by Lizard Wisdom
2007-12-13 11:24:19

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