Monday, March 31, 2008

Check Your eBay Invoices!

I have a request for those sellers who get their eBay bills around the 1st of the month. Can you let me know if the % of sales you pay to eBay has risen or declined under the new fee structure? Also, if you qualified for the 5% or 15% discount.

Please email me or comment on this post with your % of sales from February and your % of sales from March (I won't identify anybody). I'm just trying to determine if the fee changes eBay made in late February have had a negative or positive effect on your business.

If you were able to list more items because of the listing fee reduction then hopefully you saw your sales increase, but the FVF was raised as well, so your eBay fees as a percentage of sales may have also increased

For example; if you sold $100,000 in product on eBay during the month and paid eBay $15,000 in fees, your % of sales would be 15% -- just divide the total fees by the total sales. I don't need the raw data just the percentage M/M.

If your sales increased and your % paid to eBay stayed the same or went down, then the benefits of the fee changes are obvious (remember to factor in the FVF discounts, if any). If your sales increased but your % paid to eBay went up as well, then there is a problem.

Even the smallest of sellers needs to look at how much of their revenue is going to eBay as a % of their total revenues so they can determine the value of selling on the platform.


permacrisis said...

RKS, my eyes are going. I did a double-take, as I thought you said, "... and paid eBay $15,000 in fines..." :-)

Have a great day.

Randy Smythe said...


I actually should have used fines and then crossed it out and added fees.

Anonymous said...

Comparing my February and March sales wouldn't be fair, because due to two health crisis in my family, and enough sales at other venues I didn't need eBay so much, I was far less active and therefore sold a lot less.

However, I did pull my March activity into a spreadsheet and calculate what my fees would have been under the old fee structure vs the new fee structure if I had listed & sold exactly the same.

Old fee structure: Fees 43% of sales
New fee structure: Fees 28% of sales

That is a little distorted because I had to factor in core gallery which I wouldn't have used before - but I think it still shows a significant fee decrease for my business model under the new structure.

Cliff said...

I anxiously await my latest bill which should come any day now. Something I hadn't anticipated is the wasted time I spend checking my Seller Dashboard each day and the way the results strum my nerves -- I've been pacing back and forth between a 4.7 and 4.8 DSR in shipping charges for the past few days and I have no idea which number eBay is going to take. Of course this minuscule result will be all that decides if my discount is 5% or 15%. Just like anything else, being the guy right at the cut-off point is pretty lousy.

Randy Smythe said...

Cliff, that is actually sad. eBay should round up. any DSR 4.75 or better should get you the 15% discount and anything 4.55 or better should get you the 5% discount

Cliff said...

Randy, even if they did there would always be a cut-off point that just manages to screw someone, so I guess I can't get too upset over this if I miss out.

Honestly, for all I know they are doing that as my Dashboard is only showing the first decimal anyway.

What's sad is how obsessively I'm checking this damn thing, I really hope I calm down on that some as it becomes more established.

Randy Smythe said...

Cliff, it looks like they are rounding up or they are taking your avg DSRs for the 30 days. A number of sellers who I've spoken with are getting the discount even though one of their DSRs has dropped below the line.

As for the numbers.

It looks like some sellers are seeing an increase in Sales with a slught drop in eBay fees and some are seeing a drop in sales and an increase in eBay fees since the fee changes went into effect.

Keep that info coming.

Cliff said...

Hi Randy,

% paid to eBay decreased 5% from Feb. to March.

Sales themselves increased 45%

Hope this helps,

Randy Smythe said...

Cliff, thanks for the info. I'm hearing much the same from other sellers. In fact, so far only one has said they had a slight decrease in sales and a slight increase in fees.

I hope that trend continues.