Tuesday, January 29, 2008

eBay UK Fee Changes are Much Different Than in the US

Here is a nice post from my friends over at Tamebay.com in the UK about the changes coming to eBay UK. Please read the post for all of the details but here are a couple of things I would like to point out:

  • Gallery fees remain the same. (In the US they are free)
  • Media categories have their own specific fee structure. (This is what the US needs to adopt.)
  • Higher FVF discounts for good power sellers. In the US the discounts run from 5% to 15% based on DSR rating. Here is the UK FVF fee discounts.

"FVF reductions for good sellers

High-volume business-registered sellers with a score of 4.6 or more on all DSRs over the last 30 days, will be entitled to a discount of 20% off their FVFs. Members of the PowerSeller program will receive higher rates of discount depending on PS level:

Bronze: 20% (sorry, Bronzies: no extra for you )
Silver: 25%
Gold: 30%
Platinum: 35%
Titanium: 40%

In other words, Powerseller level now really is worth something. This is a change unique (as far as I know!) to the UK, and is not happening in the US. "

Thanks to Chris and Sue of Tamebay for the info.


Cliff Aliperti said...

Got to say, even though I seem to be one of the few happy with what happened today, the UK changes do sound a lot better. Except for continuing to charge for gallery, but big deal.

Randy, do you think they purposely made changes so different between the two sites in order to test things out and adjust in coming months?

Or is there a reason for such differences?

Randy Smythe said...

Cliff, sometime they make these changes as a test but I think in this case they gave the UK some autonomy on making their own changes.

I guess if the results are better in the UK than in the US we might see those change here as well.

BTW, you are not the only one that likes the changes. Many sellers feel it will be good for their business. I've even talked to a couple of media sellers who disagree with me.

Anonymous said...

How in the world do those media sellers feel it is better for them?
Please elaborate how they see benefits, I'm astounded!

They must carry a real, physical inventory, as opposed to the DVD sellers standard "virtual" inventory" (which accounts for slow delivery time to the buyer).

Or, they must not be truly high-volume sellers, (thus, accounting for lousy canned customer service responses/and or/no customer service at all.

I can't imagine sellers like kevheadmedia or redtagmarket (who are dancing closely to 5% neutral/negative restrictions territory) enjoying these ebay changes-unless they plan to completely revamp their way of doing business...

Randy Smythe said...

They are not big sellers in the scheme of things and they do carry inventory as far as I know.

They also charge some of the lowest S&H rates among media sellers and I think they feel they will be advantaged over other high volume sellers.

Not everybody agrees with me but no matter how I look at these changes it spels fee increase for media sellers.

Sue Bailey said...

Thanks for the links Randy.

Anonymous said...

Randy, I don't follow your argument that kevheadmedia and redtagmarket will be leveraged over other high volume media sellers. Each one has a S&H DSR of 4.4 (both charge $5.50 for a single domestic DVD which doesn't really qualify them as "some of the lowest S&H rates among media sellers)"

It is my understanding that the DSR will be the factor considered in increased/decreased search visibility and the actual S&H will be irrelevant.

As a reference, the single item domestic shipping cost and S&H DSR for a few other top media sellers:

4.7 / $6.00 (thinkingdvd)
4.7 / $5.50 (russegd)
4.7 / $4.50 (moviemagicusa)
4.7 / $3.50 (bargainbincds)
4.6 / $6.99 (cd-bay)
4.6 / $5.95 (deepestdiscountdvd)
4.6 / $5.00 (deepbluedvd)
4.6 / $4.99 (collectionstop)
4.6 / $4.95 (onlinemovieoutlet)
4.6 / $3.95 (1stchoicedvd)
4.6 / $3.79 (digitaleyesdvd)
4.5 / $5.50 (bigrockmedia)
4.5 / $4.98 (outpost_media_deals)
4.5 / $4.95 (digitaldogpound)
4.5 / $4.25 (oddbanana)
4.4 / $5.95 or $7.35 (thevideobarn)
4.4 / $5.50 or $6.95 (kevheadmedia)
4.4 / $6.95 (thermite-media)
4.4 / $5.95 (crazydvdprices)
4.4 / $5.50 (redtagmarket)
4.4 / $4.95 (midwest_media)
4.3 / $5.99 (white_elephant_media)
4.3 / $5.50 (moviemarz)

Granted this is an inexact and incomplete list, but there appears to be very little correlation between the S&H DSR and the actual S&H.

I would never suggest that eBay start rating sellers (more so than they already do through other methods), but they would have a much better view than an individual buyer over how the shipping charges compare to other sellers in each category. Granted this would only work in catalog based categories where sellers were selling materially the same item. Alternatively, why not set a price ceiling on S&H charges per category or create a score that rates your S&H for a product against the range for other identical items currently listed?

Dan said...

Dear Randy/Anonymous poster #2,

My name is Dan and I am the formerly anonymous poster #1 who asked how a media seller could see the changes as beneficial.

Randy, I usually log into all blogs as anonymous, simply to save the time typing in my name; I will never be this lazy again, as I see how it has caused some confusion here! You have a great blog going, so I want to help you out with communication about this.

Anonymous #2-Randy never cited those 2 sellers as examples at all-I KNEW he wasn't referring to redtagmarket or kevheadmedia. He was referring to other, unspecified sellers (who could be media sellers of say, used records, and have nothing to do with the dvd wars on ebay).....

I only cited those 2 dvd sellers, very randomly, as prime examples of larger media sellers who I feel stand to lose out with the new ebay changes. I only meant to list them as a contrast.

Randy's replies to me were NOT about these 2 specific sellers at all that I cited-his replies were in reference to the other unnamed media sellers.

Whew, what a crazy week for us all!


Randy Smythe said...

Blogger has been so wonky the last couple of days I didn't know we were having a problem.

Anonymous #2 Dan is absolutely correct. The two sellers I mentioned are much smaller media sellers than the list you provided and I didn't say I agreed with them. They had actually disagreed with me (of course since that time they are coming around to my point of view) I haven't shared their names because I promissed them I wouldn't.

Dan, thanks for comming back to clear that up.

Annonymous #2 and everybody else, let me be clear. I've looked at the fee changes from just about every different angle and I cannot find any way this will be benficial to large media sellers on eBay. Even high FB media sellers like Moviemagic USA are going to see a pretty substantial increase in fess this year with the new structure.

There is a slight bit of hope that Best Match will not affect Store discovery and if that is the case I see more media sellers giving up on Core and just listing in stores.

Thanks for your comments everybody.

Randy Smythe said...

Annony #2 One thing I forgot to mention in my earlier comments,

You are correct, there doesn't appear to be any correlation between high S&H and low DSRs for S&H and I'm not sure what their reasoning is for not establishing a ceiling for S&H in media.

I do know that the changes they announced on Tuesday aren't the solution to the problem.