Joined: 21 Jun 2006
Feedback Score: 3
|Posted: Tue Aug 15, 2006 4:01 pm Post subject: Ebay store fees = abandon
|We are abandoning our Ebay store.
Thanks to Ebays fee increase it makes it really not worthwhile. You figure it takes $15.99 just to have the store. List fee's going from .02 to .05 renew every 30 days. Plus an avg fee increase of 2% up to 10% final value fee's on stuff under $25.
Some cant visualize the costs here. A good store needs at least 300-1000 listings. But the issue becomes the renewal on all these items monthly only can go against the sales that month. Thus even though you may have 300 items listed, store sales run about 40-60 item sales. I had some good runs where I sold 280 pieces in 1 week , but I also had hot new stuff and one massive buyer hit me for 150 items.
As stuff gets older the sales slow. Anyway once you compound renewals + monthly storee fee, plus the 10% final values and 5% ebay, you get your arse kicked.
Once good thing ebay did is for today and tommorow Tue Wed. They offered store owners to transfer any store items to regular or fixed auctions for a .10 cent fee regardless or start or reserve price.
Also ebay was effectively making store views hard. As I transffered about 1/3 of my stuff today, I had 8 quick sales already. Further proof many things dont get viewed in stores unless someone actually nails your link.
Overall Ebay gets a D minus for what they did to stores.
I have a buddy who does DVD's and Music CD's used, most he buys for 50 cents to $1 and sells on ebay for an average of about $3-$4.
8000 listings and bout 140-160 sales a week.
8000 x .05 = $400 fee's monthly
15.99 store fee
now lets take the averages so we go 150 sales a month and average sale
3.50 thats $525.
So take 10% final value fee's $52
So monthly store cost is $468 on $525 revenue hmmm. Bear in mind with stuff like this some costs are recovered in S&h
Prior to fee increase cost on these same $525 in sales was $218
So for the same exact store monthly costs went from $218 to $525.
Way to butcher the masses Ebay. All hail the Mighty profit.
I had the WORST break luck in 2006 and 2007 is giving it a good run for my money. Edit and add 2008 to the party.
Photobucket just for viewing kicks http://s61.photobucket.com/albums/h75/mainlyrookies/