Wake-Up!

Some Positives, But Problems Persist at eBay

eBay stock appears to be in V-Fib. This is and has been factual regardless of market trends. Conversion rates have deteriorated and sellers are over-burdened with outrageous fees.

In a slumped economy eBay should naturally be the best alternative for shoppers wanting to get the biggest bang for their buck.

However, this is not the case anymore. WalMart has had significantly higher conversions and has fared the recession better than eBay.

Why?

Because wise shoppers (buyers) have realized eBay is nothing more than an over-bloated greedy pig with outrageous prices!!! And it is NOT the sellers fault.

When sellers have to increase the price of their products in excess of 15%, plus 2.9% PayPal fees (an eBay company - how convenient since sellers can no longer accept Money orders, only PayPal), plus listing fees, plus store fees, plus conversion fees, and no protection, this is a recipe for complete and total destruction. In fact the only zero in this equation is eBay's customer service. That part comes easy to them.

Follow the trail:

An original item cost of $49.99 with $13.99 shipping (modest shipping costs considering UPS and USPS have raised their costs yet again), will actually translate to a minimum selling price of: $73.91 and up! AND this is without adding your own profit!!! This figure is only to pay off the greed monsters.

Here's the breakdown:

*Original item cost to seller refers to what it will cost the seller to purchase this item from a distributor or manufacturer and then to re-sell it:

Original Cost: $49.99 x 15% (eBay FVF Fees)
eBay FVF fees: $7.50 (sub-total + $57.48)
Listing fees: $.35 (sub-total + $57.84)
Shipping: $13.99 (sub-toal + $71.82) x 2.9% PayPal Fees
PayPal Fees: $2.08 (sub-total + $73.91)

GRAND TOTAL: $73.91 Without any profit!!!

Now let's add some profit to this figure - I mean.... this is why we are in business right? Remember, your profit should never be less than what you pay to the monsters to sell an item. So let's add a profit of $10.00.

Now we have a whole new ball game! Different tiers and percentages that even an veteran accountant would have trouble understanding. I'll try to break it down for you:

Original Cost: $49.99 + 10.00 profit (sub-total $59.99)
x 15% eBay FVF Fees (Tricky, so watch carefully)
15% x the first $50.00 = $7.50 plus 5% over $50.00 which would be on $9.99 x 5% = $0.50
eBay FVF Fees are now $8.00 (sub-total $67.99)
Listing fees: $.35 (sub-total + $68.34)
Shipping: $13.99 (sub-total + $82.83) x 2.9% PayPal Fees
PayPal Fees: $2.40 (sub-total + $85.23)

GRAND TOTAL: $85.23

OH MY GOSH!! $83.23 for a $49.99 item!!!

This is why eBay IS failing! WalMart definitely has better prices. Buying on eBay is not a deal anymore. Not now, not tomorrow, not ever.

There you have it. The recipe for complete and utter destruction of a once great place to sell. Rest in peace you greedy monster.

www.Bonanzle.com