TheBrewsNews

Changes to eBay’s Pricing Plan Could Whack Shares by 20%

If eBay doesn't change their fee structure, more and more Powersellers are going to list their items elsewhere and then eBay's revenue will suffer since they will lose both the insertion fee and the final value fee. The total costs to eBay sellers are already too high. Total fees to many Amazon sellers is 15-20% and includes the payent processing fee. Total fees to many eBay sellers is 25 - 35% when you factor in all the selling fees and PayPal fees. That fee structure is simply not sustainable.

If eBay lowers insertion fees and raises final value fees, the average selling price will likely increase slightly as more sellers would be inclined to offer items at fixed price rather than auction. Fixed price almost always brings a higher selling price. In addition, with a greater number of listings and other revenue streams such as ad placement, eBay could more than make up for the lower insertion fees which would also be offset by higher final value fees on higher selling prices.