Gosh its been an exciting few days in the world of eBay watching. The site has made some pretty radical changes to how their fee structure works. Interesting, all very interesting
The end of the level playing field (in the UK at least)
eBay has done two things to the way their fees are structured
- Reduced their insertion fee and increased their final value fees. The idea is to make the fees more success driven, aligning the interests of eBay and the sellers.
- Offering a scalled reduction of final value fees based on powerseller status and detailed seller ratings i.e. if you are a volume seller who gives a good service you will get a discount
I think that the second change is particulary interesting. When I have talked to eBay in the past, they were most adamant that their marketplace was going to be for now and evermore a level playing field where sellers pay the same fees if they are a sole trader or multinational. In most other lines of business bulk users get a discount, which is what eBay is now offering in the UK.
I remember Randy Smythe complaining in his after bankrupcy debrief from Ina Steiner that he thought that eBay should offer a bulk discount on fees. Well move to the UK Randy and your dreams will come true!
I presume that this is as the result of eBay’s poor performance of late and increased competition.
eBay Express RIP
eBay express UK is to be scrapped. Whilst I could see what eBay were trying to do with express, I am not sure if anyone ever used it. I think markets tend to consolodate, a fact that has given eBay near total monopoly of the online marketplaces. Getting people to use express was asking them to leave the consolodated marketplace, where a) all the action is and b) they are used to going. Not surprisign that it didn’t work really
End of Seller Negative Feedback
Sellers will no longer be able to leave buyers negative feedback. I think that this is sensible as I think that after a buyer has paid, they have done their part in the transaction.