eBay fees changing on 24th September

If you are an eBay seller, I’m sure you will have heard by now that eBay are changing their fees again.  This is on eBay.co.uk so I am not sure how it affects any other site, but in the past fee changes usually are all very similar and rolled out at roughly the same time.  So if you are not an eBay.co.uk seller please still read this post as it will still be relevant.

If you have not seen the new changes yet visit http://pages.ebay.co.uk/pricechange08/. (This will open in a new window).

These changes seem quite complicated at a glance, so I want to go through how these will affect you, depending on how and what you sell.

Firstly we currently have four different ways of listing our items for sale. 

  • Auction
  • Buy it now
  • Shop inventory
  • Classified ads.  I have no experience with classified ads, so I wont be talking about this.

Firstly, here is what the changes are briefly

Auctions – The insertion fees are not changing, however the final value fees are increasing from 7.5% to 8.75% for items that end under £29.99.  This is equivalent to an extra 1.25p from every pound you make.

Shop inventory – You can currently list items in your shop from 3p for 30 days.  These items are only visible to buyers who visit your shop, or occasionally will appear in main search results, but only at the end.  From 24th August, this type of listing will not exist.

Buy it now – Now, this is where the major changes are happening.  Currently, the insertion fee is based on how much you list your item for, and is from 10p for items 99p or less, to £1.30 for £100 or more.  From 24th August, all listings will cost the same no matter how much you list them for, but the fee you pay will depend on whether you have a shop or not, and if you do have a shop, what type of shop.   Also, you can now list buy it now listings for up to 30 days whereas before, you could only list for upto 10 days.   Click the link above to check the new fees based on this criteria.

Also note, that there will no longer be a charge for a gallery image.

So, how will these fee changes affect how you trade on eBay?  Well, I believe this will depend on the type of products you are selling, how many a month you sell,  how many of the same product you sell and list at once, and how much you are selling them for.  This is where we need to get out the trusty calculator to work through this.

These calculations are based on buy it now listings and assuming you list 100 items per month and sell on average 20% of them, i.e. 20 items are sold.  I’ve only based these figures on 100 so it is easier for you to work out your fees if you sell different amounts to this.  For example, if you list 300 items per month on average, then just multiply these figures by 3.  Of course it will depend on how much you are selling your items for, and what percentage of your items you sell.

If you do not have a shop

Pre 24th September costs
Assuming you sell items for £4.99
Listing fees – 100 x £0.15 = £15
We will not include the gallery image fee, as this has been free all summer anyway.
Final value fees based on 20 items sold @ £4.99 – (20 x £4.99) x 7.5% = £7.49
Total = £22.49

Post 24th September
Listing fees 100 x £0.40 = £40
Final value fees – (20 x £4.99) x 9.9% = £9.97
Total = £49.97

If you have a shop

Pre 24th September
Shop subscription = £6.00
Buy it now listing fees – 100 x £0.15 = £15
Assuming you also list in your shop inventory with a gallery image, because I do – 100 x £0.06 = £6
Final value fees based on sales from your buy it now listings – (20 x £4.99) x 7.5% = £7.49
Total = £34.99

Post 24th September
Based on basic shop fees
Shop subscription fee – £14.99
Listing fees – 100 x £0.20 = £20.00
Final value fees – (20 x £4.99) x 9.9% = £9.97
Total = £44.96

Based on featured shop fees
Shop subscription fee – £49.99
Listing fees – 100 x £0.05 = £5.00
Final value fees = £9.97
Total = £64.96

Based on anchor shop fees
Shop subscription fee – £349.99
Listing fees – 100 x £0.01 = £1.00
Final value fees – £9.97
Total = £360.96

So based on the above figures, you are better off pre 24th September without a shop, but post 24th September you will be better off with a basic shop.  But how many more listings would you need to make each month for it to be worth while upgrading to a featured shop?

Difference in subscription fee – £49.99 – £14.99 = £35
The difference in the listing fee is £0.15 per listing.  £35 / £0.15 = 233 listings.  So you would need to make a minimum of 133 more listings a month if you currently have 100 listings a month.  Post 24th September, it will also be irrelevant how much you list your buy it now items for, as the listing fees will be the same.

I mentioned earlier that this will affect different sellers in different ways based on their current listing patterns.   So I now want to look at another scenario.

I sell CD ROMs for which most cost £1.99.  Currently I list them on a buy it now for 10 days and just keep relisting them every 10 days or after a sale is made.  Currently I have 2 items available per listing as 3 ore more would increase the listing fee.  Post 24th September, I will be able to make available as many items as I like per listing and have a listing running for up to 30 days for 20p, as I have a basic shop.  So lets compare the fees based on this selling pattern. 

As before, I will base this on 100 listings per month.

Pre 24th September
Basic shop subscription fee – £6.00
Buy it now listing fees – (100 x £0.15) x 3 = £45 (x3 because at the moment a listing is for 10 days and there are 30 days in a month)
Shop inventory listing fees – 100 x £0.06 = £6.00
Final value fees based on sales from the buy it now listings – (60 x £1.99) x 7.5% = £8.96 (60 items sold as this is 20% of 3 x 100 listings)
Total = £65.96

Post 24th September
Basic shop subscription fee – £14.99
Buy it now listing fees – 100 x £0.20 = £20.00 (you will be able to list for upto 30 days, so no need to relist every 10 days)
Final Value fees – (60 x £1.99) x 9.9% = £11.82
Total = £46.81

In this scenario, you will be better of after 24th September.  See what I mean when I said these fee changes will affect sellers in different ways depending on how they sell, and what they are selling?

Here is another link which will show you which shop, if any, you will be better of having after the fee changes:

http://pages.ebay.co.uk/buyitnow08/illustrator.html (Will open in a new window)

I could go on for ever comparing fees depending on different sellers listing patterns, but I hope this gives you some idea of how you will be effected.

So what will you do on the 23rd of September, the day before these new fees come into effect.  Will you keep selling on eBay, will you get a shop if you haven’t already?  Please let me and your fellow readers know what your thoughts and ideas are on these changes by leaving a comment below.

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