As I look into the numbers behind the eBay fee changes, it is clear they are decidedly less expensive in some categories, but are they truly less expensive than Amazon for media?
Lets say an eBay seller wants to list 10,000 FP listings under the new rules on eBay and they also list 10,000 items on Amazon. For argument sake each item is $10 plus $2.98 for S&H. Total revenue per sold item is $12.98. We will also say they sell 1500 items in a month from each site.
Listing Fees and Subscriptions.
- Amazon - $39.95 to list (Pro Merchant fee) - Cost per sold item is $0.03 ($39.95 / 1500)
- eBay - $500 to list (10,000 x $0.05) Cost per sold item is $0.33 ($500/1500)
FVF is the same on both sites so that is a wash, so each site charges $1.50 per item in FVF.
On eBay the payment side of the transaction is separate, so if they use PayPal and have $2.98 S&H they pay $0.59 in PayPal fees (2.2% plus $0.30 fee) I changed to 2.2% for PayPal because a seller listing 10K items is more than likely selling enough to earn that fee.
On Amazon, you would pay a $0.80 Variable Fee.
Total cost per item for Amazon - $2.33
Total cost per item on eBay - $2.42 (this is the updated cost and does not reflect FVF discounts earned)
Based on eBay's published info from May, regarding Power Seller FVF discounts, 34% of Power Sellers earned a 15% discount on their FVF which in this comparison would save $0.23 cents making the eBay fee lower than Amazon.
So the revised eBay cost with the earned FVF would be $2.19 as opposed to Amazon's $2.33 or a savings of $0.14 per item.
So in this comparison eBay has lower fees than Amazon if you are one of the 34% of sellers that received the 15% discount.
Do the Math!Just my 12%