# Ebay Does it Again



## Longfellow (Mar 16, 2011)

I received an email from Ebay informing me that as a Top Rated Seller and also a Power Seller that beginning 04/19 I can list up to 50 items and not pay a listing fee until the item sells.
But to insure buyers will bid more Ebay encourages us to keep shipping charges low. Their solution is to now include shipping charges in the amount their Final fee is based on. 
I will probably list only 50 items per month and raise the opening bid on the item.
When are they going to do something to benefit the sellers? 
Maybe I will win the Lottery tonight and then tell Ebay to shove it.


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## Canadian_Kid (Mar 16, 2011)

I think the reason why they are adding the shipping into the price is because some people have a NR .99 starting price with a huge shipping cost (this means that ebay wont make their $$$$). I have seen that lots of people have their own web page and state in their add that they can save 10% by purchasing the same item on their web page. I personally think that the prices ebay charges is on the high side.


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## Smitty37 (Mar 16, 2011)

*Leaving shortly*



Canadian_Kid said:


> I think the reason why they are adding the shipping into the price is because some people have a NR .99 starting price with a huge shipping cost (this means that ebay wont make their $$$$). I have seen that lots of people have their own web page and state in their add that they can save 10% by purchasing the same item on their web page. I personally think that the prices ebay charges is on the high side.


 Well over about three years I've gone from all eBay to very soon NO EBAY.  EBAY sticks it to the sellers (especially the small sellers) every time they make a change.  Every change is designed to put more money in their coffers and less in the sellers.  I suppose as long as the sellers put up with it they will continue.


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## bitshird (Mar 16, 2011)

If you don't like feebay and think it sucks, try the new PayPal invoice setup. Some day they may smarten up and realize that the sellers are the ones that make them the money, between the higher listing fees and the percentage that PayPal get you really get hammered. I haven't sold any thing on ebay for a long time, but PayPal still gets enough to keep Corporate eBay happy.


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## MesquiteMan (Mar 16, 2011)

Personally, I see no issue with this and it should help those who don't try to get around the system with super high shipping charges.


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## Smitty37 (Mar 16, 2011)

*Not*



MesquiteMan said:


> Personally, I see no issue with this and it should help those who don't try to get around the system with super high shipping charges.


I think you have not sold much on eBay at least I'd guess you aren't a regular seller there. 

Let me give you an example of how they take care of sellers - they raised their final value fee on Auctions from 5.75% to 8.75% and said they were helping sellers because for being a top rated seller you could get a 20% discount off your final value fees...so if you sold a $20.00 item the fee increased from $1.15 to $1.75 if you earned the 20% discount you got $.35 off --- net result, seller paid a minimum of $.25 more and a maximum of $.60 more per sale 100 sales a month and your cost went up by $25 to $60 per month with no compensating increase in prices. There are more examples.  For instance they won't let sellers accept checks or money orders (to help them avoid loss) - so that caused two things - some sales lost because buyers won't use paypal and increased PayPal charges.  10% of my business was paid by check when they did that half those buyers never returned so I lost 5% of my sales and had PayPal fee costs increase on another 5%.  I had never had a lost sale because of a bounced check or because a buyer didn't mail the payment.


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## Russianwolf (Mar 16, 2011)

but would ebay have had to raise their fees if people hadn't started offering $200 items for .99 plus $199 shipping? That's what Curtis is talking about. People started scamming ebay a long time ago.



My biggest problem with ebay is that sniper programs are used too often. I bid what I'm willing to pay and let it ride now. Heck, I often forget that I bid on something until I see the email saying I won or was out bid.


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## MesquiteMan (Mar 16, 2011)

Yep, that is what I am saying.  Also, I hate to break it to you, but prices are going up everywhere.  Why can't E-bay raise their prices too?  Their costs are going up as well.  It takes a lot of energy to run those super-computers and energy prices are not going down any.  Also, don't you think those E-bay employees that keep everything running want and get annual raises?  E-bay is out to make money, period.  If their costs go up, they pass it on to the consumer just like every other business out there.


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## Smitty37 (Mar 16, 2011)

*All for eBay*



bitshird said:


> If you don't like feebay and think it sucks, try the new PayPal invoice setup. Some day they may smarten up and realize that the sellers are the ones that make them the money, between the higher listing fees and the percentage that PayPal get you really get hammered. I haven't sold any thing on ebay for a long time, but PayPal still gets enough to keep Corporate eBay happy.


 
Keep in mind eBay does NOTHING with their fee structure that is not designed to increase their take - NOTHING..no matter how they try to disquise it the real purpose is for eBay to get more and the seller to get less.  Most eBay sellers are likely to be making almost no profit at all.  

By the way I ran well over a thousand eBay auctions with .99 opening bid and no reserve - I tried with free shipping, low shipping and full cost shipping.  I made more money with full cost shipping.  Bids would be higher for free shipping but not enough to cover the cost of the shipping.

Reserve bid auctions don't sell on common items - and "buy it now is a joke" somebody just throws in a minimum bid and your buy it now fee is gone.


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## Smitty37 (Mar 16, 2011)

*Whoa*



Russianwolf said:


> but would ebay have had to raise their fees if people hadn't started offering $200 items for .99 plus $199 shipping? That's what Curtis is talking about. People started scamming ebay a long time ago.
> 
> 
> 
> My biggest problem with ebay is that sniper programs are used too often. I bid what I'm willing to pay and let it ride now. Heck, I often forget that I bid on something until I see the email saying I won or was out bid.


 
No, they wouldn't - first they wouldn't allow you to do that (and you can try listing something like that if you think they'll let you) because they already have in place policies that prohibit "excessive" shipping. In some cases, for certain classes of items, they have "maximum shipping charge allowed" in place.   

They are after the person that sells and item worth a dollar and charges three or four dollars to ship it because that is their cost.  You will note that many if not most on-line sellers also charge more to ship a low priced item than the item costs.  EBay provides no services at all with respect to shipping.


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## Smitty37 (Mar 16, 2011)

*Auctions*

Most live auctions spread their charges between buyer and seller with both paying a part of the total fee the auction collects.  

This is fair, because the auction is providing a venue for the benefit of both buyers and sellers.  eBay unfairly pushes all of those costs onto the seller even though they could easily add a bidder's premium to the price -j at least on the actually auctioned items.


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## Smitty37 (Mar 16, 2011)

Smitty37 said:


> MesquiteMan said:
> 
> 
> > Personally, I see no issue with this and it should help those who don't try to get around the system with super high shipping charges.
> ...


 
By the way on that $20 sale above - if you had $3.00 shipping (my usual charge for shipping 10 slimlines (of which $2.93 is postage and the shipping envelope) the total new fee would be $1.82.  That is what eBay is after....nobody is ripping them off.


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## sgimbel (Mar 16, 2011)

I just looked at some wine bottle stoppers starts at $.99 with $29.00 shipping.


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## Rob73 (Mar 16, 2011)

Canadian_Kid said:


> I think the reason why they are adding the shipping into the price is because some people have a NR .99 starting price with a huge shipping cost (this means that ebay wont make their $$$$). I have seen that lots of people have their own web page and state in their add that they can save 10% by purchasing the same item on their web page. I personally think that the prices ebay charges is on the high side.



You can report any seller that sends a customer off site to purchase product(s) that do not go through the ebay system.

As far as Ebay doing something for the sellers... never.


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## IPD_Mrs (Mar 16, 2011)

MesquiteMan said:


> Personally, I see no issue with this and it should help those who don't try to get around the system with super high shipping charges.


 

I can see Curtis' point here.  I can't tell you how many times I have been looking for something, found what was a decent price and when I went to the item found $20 shipping or some such.  It is ludicrous and simply a way to keep from paying the fees as far as I can see.  

Now before you start bombarding me with lectures, remember before the pen world we were in antique glass sales and did a HUGE EBAY BUSINESS so I'm quite familiar with their games too.  I'm definitely NOT taking their side in everything they do - but this is one place where I think sellers are taking advantage of a loop hole and ultimately it doesn't help EBAY or the seller.  I've left the site and just gone onto Amazon more times than not because I've gotten angry trying to find what I am looking for without all the Bull.  That doesn't help anyone. (well except Amazon or the next business that I find appropriate.)


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## ed4copies (Mar 16, 2011)

Smitty37 said:


> Most live auctions spread their charges between buyer and seller with both paying a part of the total fee the auction collects.
> 
> This is fair, because the auction is providing a venue for the benefit of both buyers and sellers.  eBay unfairly pushes all of those costs onto the seller even though they could easily add a bidder's premium to the price -j at least on the actually auctioned items.




Smitty,

The buyer PAYS 100% of the fees.  

9% or so goes to ebay,
91% goes to you, and you pay USPS.

There, now you don't pay ANY fees, feel better??


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## Smitty37 (Mar 16, 2011)

ed4copies said:


> Smitty37 said:
> 
> 
> > Most live auctions spread their charges between buyer and seller with both paying a part of the total fee the auction collects.
> ...


 
Actually the buyer would pay the same price with no fees - so I pay 100% of the fees...The buyer decides how much he will pay for the item usually that would be what he would think it is worth. 

I personally bid the max I will pay for the item minus any shipping charges and if someone bids more than that, I just let them have it on the basis that they are overpaying.

As I said, I have sold more than 1000 *auctions *on eBay....I wasn't counting fixed price sales.


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## MesquiteMan (Mar 16, 2011)

There is no darn such thing as being fair or unfair.  E-bay offers a service.  You choose or choose not to use that service.  You pay for that service.  If they decide to change the pricing or how they collect their fees...so what.  You do NOT have a "right" to use E-bay and they do not have to do anything more than their terms of service stated that you read before you list something.  I guess some still want to buy a new car for $10k too and feel the car companies are not being "fair" since you can't.

Don't like what E-bay does...stop using them.  Better yet, why not risk your own money to start a competitive business with much lower fees and take their business away from them.  Problem solved.


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## MesquiteMan (Mar 16, 2011)

Personally, I am very thankful for a venue such as E-bay.  My wife has a very successful E-bay based business and without it, we would be in a SERIOUS financial hurt since the building industry is sucking wind.


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## zig613 (Mar 16, 2011)

It is relatively simple… E-bay will charge whatever the market will bear.  If their prices become too high to the majority of their customers (sellers) then their business will shift to a competitor.  Then if they don't do a pricing correction then they go out of business.  There is nothing wrong with making money as long as they ethical and are up front with their fees… you either decide to use their service or someone else’s. It’s called “free enterprise”.   

Wade


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## ericw95 (Mar 16, 2011)

*Disagree Smitty*



Smitty37 said:


> Russianwolf said:
> 
> 
> > but would ebay have had to raise their fees if people hadn't started offering $200 items for .99 plus $199 shipping? That's what Curtis is talking about. People started scamming ebay a long time ago.
> ...


 
Within the last 6 months I've had to file a complaint with ebay over this.  A seller had 2 identical items listed - one with a higher opening bid and reasonable shipping charges and the other with .99 and a $50 shipping.  It cost $4 to ship.


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## Padre (Mar 16, 2011)

Smitty37 said:


> ed4copies said:
> 
> 
> > Smitty37 said:
> ...



Are you making a decent profit on the sale?  That is the big question unasked here.

If you aren't, you need to raise your prices.  If you aren't making  enough, you need to raise your prices.  If you are, then all seems well.


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## ed4copies (Mar 16, 2011)

Actually, Padre, the equation is even simpler:

What would you sell WITHOUT Ebay???

So, you OWE them 100% of the sale, since without them you have nothing.


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## Padre (Mar 16, 2011)

ed4copies said:


> Actually, Padre, the equation is even simpler:
> 
> What would you sell WITHOUT Ebay???
> 
> So, you OWE them 100% of the sale, since without them you have nothing.



You have a valid point there my friend!


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## TellicoTurning (Mar 16, 2011)

I have no dog in this fight since I haven't used E-Bay in several years... not because of anything they did, just that I found other ways to accomplish what I was trying to do... I use my own web site and ETSY to sell on line, plus selling at shows... I have to agree with Curtis though, if you know what the charges you will be facing, account for them in your sales pricing... they're business expenses... and if you want to be in business, you will have business expenses.


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## amboyna (Mar 16, 2011)

MesquiteMan said:


> Personally, I am very thankful for a venue such as E-bay.  My wife has a very successful E-bay based business and without it, we would be in a SERIOUS financial hurt since the building industry is sucking wind.


I am the same way. Being unemployed my Ebay profits help a lot. I usually sell my own stuff. But lately I have been selling someone else's stuff. They get 50% off the top. I end up with about 35%. My fees are a little lower than normal because I am a power seller. Sunday night I did $1,000. That gives me about $350 for 10 hours of work. And no product lost.
     There is no other venue I can do that.
What ****es me off the most is I have to pay Paypal fees on postage.:frown:


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## Smitty37 (Mar 16, 2011)

*I have --*

I don't like their policies or their prices and I have taken most of my business elsewhere.  

It is this simple - they provide as much, and actually better, service to the buyer as they do the seller.  They treat the buyer like a customer, they treat the seller like poor relations.  They demand more and more from sellers while providing less and less - one day they will go too far and there will be a mass exodus.  I used to go to eBay first as a buyer - now I go to Amazon first, lower prices, less risk.


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## MesquiteMan (Mar 16, 2011)

Oh, but these last few answers are too hard!  It is easier to blame E-bay for being UNFAIR!

Tell you what is unfair...it would be unfair if E-bay did not do everything ethically in their power to maximize their shareholder's return on their investment.  After all, that is the primary obligation of a publicly traded company.


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## MesquiteMan (Mar 16, 2011)

Smitty37 said:


> I think you have not sold much on eBay at least I'd guess you aren't a regular seller there.



Nope, but my wife does.  She has 100% positive feedback on 1,702 sales and has as many as 20 auction per week.

I personally don't sell on e-bay because pen blanks don't usually do well there, at least in my experience.  I have actually invested my OWN money and significant amount of time into my own website and sell almost exclusively there with a rare ad here at IAP.


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## MesquiteMan (Mar 16, 2011)

Smitty37 said:


> I don't like their policies or their prices and I have taken most of my business elsewhere.
> 
> It is this simple - they provide as much, and actually better, service to the buyer as they do the seller.  They treat the buyer like a customer, they treat the seller like poor relations.  They demand more and more from sellers while providing less and less - one day they will go too far and there will be a mass exodus.  I used to go to eBay first as a buyer - now I go to Amazon first, lower prices, less risk.



And you have made the free enterprise system work.

Remember, though, sellers are a dime a dozen.  Buyers, on the other hand, are not.  If there are no buyers, they could offer absolutely FREE service and you will make 0.0% on your sale (or lack thereof).

Besides, why pay E-bay when you can market to a TINY pen market such as IAP for free?


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## Boss302 (Mar 16, 2011)

Ebay's real desire is for sellers to provide free shipping.  This is just another one of their schemes to push sellers in that direction.  The problem I have is the way they try and sell a fee hike as a savings for sellers.  Unless you've been a long-time seller on Ebay, it's hard to understand how each one of their business decisions has had an adverse affect on sellers.  When people were cleaning out their garages and selling the stuff on Ebay their stock was $200/share.  Now that they've turned Ebay into Pier-1 Imports, their stock price is $30/share.  Personally, I now dislike Ebay but it still works to some degree, so I continue to sell there.  Since I pay their fees every month, I can also whine a little if I chose without feeling like I've done anything wrong.


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## Smitty37 (Mar 16, 2011)

*not*



MesquiteMan said:


> Smitty37 said:
> 
> 
> > I don't like their policies or their prices and I have taken most of my business elsewhere.
> ...


My guess is that buyers outnumber sellers by about 40 to 1. If it gets less than that eBay will be in trouble.

IAP sales accounted for 20 % of my gross and 2% of my profit last year. I would not have missed my IAP sales a bit in my bottom line. You don't exactly make a killing with a 7.5% mark-up. You don't think I took myself off the vendor list because I was overwhelmed by sales do you?

If your wife has 20 *auctions* a week and is doing well she has got just one heck of a product or product line. 

I got decent response to three a day for a while, but only for a couple of months - and I was about the only one selling pen kits at auction. In fact for probably over a year, if you keyed in slimline pen kits or pen kits, my listings would be about the first or second on the list and probably 10 or 12 out of the first 20. I still had to drop to two and then to one and then to none.

You're right blanks go begging although there are a couple of guys that do pretty well, one that I bought from did just fine. I don't know for how long though, I haven't been back lately.


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## Smitty37 (Mar 16, 2011)

*They aren't policing then*



ericw95 said:


> Smitty37 said:
> 
> 
> > Russianwolf said:
> ...


 
Then they are not doing their job - they are very clear about excessive shipping charges.  I got flagged once because of a typo had shown $30.00 instead of $3.00, they sent me a warning message and I changed it.  Now maybe someone told them, I thought they just had software monitors doing it.


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## Smitty37 (Mar 16, 2011)

*long time sellers*



Boss302 said:


> Ebay's real desire is for sellers to provide free shipping. This is just another one of their schemes to push sellers in that direction. The problem I have is the way they try and sell a fee hike as a savings for sellers. Unless you've been a long-time seller on Ebay, it's hard to understand how each one of their business decisions has had an adverse affect on sellers. When people were cleaning out their garages and selling the stuff on Ebay their stock was $200/share. Now that they've turned Ebay into Pier-1 Imports, their stock price is $30/share. Personally, I now dislike Ebay but it still works to some degree, so I continue to sell there. Since I pay their fees every month, I can also whine a little if I chose without feeling like I've done anything wrong.


 
True, if you have been there a long time then you understand how much harder it is now for a seller to make a profit than it was 10 years ago.  Their fees have much more than quadrupled in that time and along with the other changes affecting sellers.  Yahoo (which in my opinion was a much better site to sell at) kept them honest for awhile because they were big enough to draw disgruntled sellers away but when they decided to drop auctions....


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## crabcreekind (Mar 16, 2011)

Im pretty sure that wasnt just you, i got that too


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## jeff (Mar 17, 2011)

sgimbel said:


> I just looked at some wine bottle stoppers starts at $.99 with $29.00 shipping.



Check this one! iPad 2 for $300 plus $680 shipping.


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## skiprat (Mar 17, 2011)

jeff said:


> sgimbel said:
> 
> 
> > I just looked at some wine bottle stoppers starts at $.99 with $29.00 shipping.
> ...


 
Someone in Fargo should just go and collect it instead of paying shipping:biggrin: 
I wonder if you could *legally* *insist* on collecting or arranging your own shippng?


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## Russianwolf (Mar 17, 2011)

pulled already.


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## DocStram (Mar 17, 2011)

Smitty . . . 

I don't have a dog in this fight.  But, I can't help but wonder . . . If you are so upset about ebay, why not just pick up your ball and go play with somebody else?  

And besides, you may have taken your name off the vendor list, but you still advertise in the classifieds.  

Quit belly-aching and whining. 

Besides . . . this is America . .  the land of corporate greed and excess . . . .  and also the land of the free.  Nobody's forcing you to use ebay.


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## Smitty37 (Mar 17, 2011)

*Your right*



DocStram said:


> Smitty . . .
> 
> I don't have a dog in this fight. But, I can't help but wonder . . . If you are so upset about ebay, why not just pick up your ball and go play with somebody else?
> 
> ...


 
Your right - you don't havr a dog in the fight.  And it isn't a fight.  

But, I don't advertise in the classifieds except relating to sales which have already been held.  A discussion was started about eBay and some actions they have taken...I am an eBay Top Rated Power Seller with a 100% good feedback and as such I think I'm entitled to express an opinion - and relate why I am leaving eBay.  If you don't like that - don't read it simple solution for everyone.


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## Smitty37 (Mar 17, 2011)

*They caught that one*



skiprat said:


> jeff said:
> 
> 
> > sgimbel said:
> ...


 
That is a little proof of my point that eBay already has policies to stop that sort of thing. That seller could have even been banned (if he's a repeat offender) or suspended. eBay is not going after that sort of thing they are after the millions of $3/$5 perfectly reasonable shipping fees and their claim about "helping the seller by preventing the blatant violators" is nothing more then the usual smoke they blow to take peoples minds off the fact that they are raising the fees for everyone who does not ship free. If you ship free they are already collecting their fee on your shipping charges.


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## DocStram (Mar 17, 2011)

Smitty37 said:


> DocStram said:
> 
> 
> > Smitty . . .
> ...




It if looks like a duck, swims like a duck, and quacks like a duck . . .  then it probably is a classified ad:

http://www.penturners.org/forum/showthread.php?t=76960

http://www.penturners.org/forum/showthread.php?t=73583

http://www.penturners.org/forum/showthread.php?t=77042

Quack, quack.  :biggrin:


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## Smitty37 (Mar 17, 2011)

*Sorry son*



DocStram said:


> Smitty37 said:
> 
> 
> > DocStram said:
> ...


 
My answer still holds.  You'll probably find the Cigar offer is still there...if you look you'll find a Le Roi offer still there from last year - those are sales in progress and the tubes are related because some members asked to be informed when I had them.


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## jskeen (Mar 17, 2011)

Ok, I don't sell on feebay, never have, never will.  I used to buy lots of stuff, back when it was individuals selling their surplus items and or items they made.  If I want to look at tons of chinese imports at near retail prices, I'll go to amazon.  

But I don't understand why sellers complain about ebay charging them instead of charging buyers.  Buyers PAY? Right?  Every dime that moves through the system comes from somebody buying something.  Either ebay gets a piece of a completed sale, or the seller pays ebay a fee on an item that didn't sell FROM THEIR PROFITS ON ANOTHER SALE, which they got FROM A BUYER.  Unless of course they are just taking money out of their pockets and sending it to ebay because they enjoy spending hours setting up auctions that they know won't work.  Which is sort of a reverse darwin sorting mechanism, and don't last long usually.  

The only real service that ebay provides to a buyer beyond a place to see stuff to buy, is some vague assurance that the buyer will not get (usually) get ripped off.  Does this lead to the occasional seller getting ripped off?  Probably.  Sellers bake that into their sales price along with everything else, or pack up their toys and go back home.  

Bottom line is that it is the Buyer actually injecting cash into the system, and therefore it is the buyer who must be wined, dined and .........well, you know. If the buyer gets the least bit annoyed, he will take his money and go elsewhere, leaving the seller and ebay to argue over who goes out of business first and who can afford the better lawyer after the fact.    

Buyers don't like to pay shipping.  Ebay will either convince their current sellers to offer free shipping, or they will find new sellers who will.  But they will not risk going without buyers.  

Is that fair?  Was MySpace's customer service policy fair?  Who cares, their business model didn't work as well as facebook's and now their customer service policy is irrelevant.  Ebay could very easily be next.  Or not, depends on how they treat their buyers.


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## Smitty37 (Mar 17, 2011)

*Yup*



jskeen said:


> Ok, I don't sell on feebay, never have, never will. I used to buy lots of stuff, back when it was individuals selling their surplus items and or items they made. If I want to look at tons of chinese imports at near retail prices, I'll go to amazon.
> 
> But I don't understand why sellers complain about ebay charging them instead of charging buyers. Buyers PAY? Right? Every dime that moves through the system comes from somebody buying something. Either ebay gets a piece of a completed sale, or the seller pays ebay a fee on an item that didn't sell FROM THEIR PROFITS ON ANOTHER SALE, which they got FROM A BUYER. Unless of course they are just taking money out of their pockets and sending it to ebay because they enjoy spending hours setting up auctions that they know won't work. Which is sort of a reverse darwin sorting mechanism, and don't last long usually.
> 
> ...


And if there are no sellers the buyers will also go elsewhere. 

eBay's service is bringing a ready willing and able buyer together with a ready willing and able seller - the exact same service to both buyer and seller.  The buyer gets it free...the seller pays for both.


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## DocStram (Mar 18, 2011)

Smitty37 said:


> DocStram said:
> 
> 
> > Smitty37 said:
> ...



Smitty  . . . . .  "Sorry, son"?
I've been an IAP member since 2006. This is the first time that somebody has tried to insult me by calling me "son".


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## Smitty37 (Mar 18, 2011)

*I'm probably older than you are*



DocStram said:


> Smitty37 said:
> 
> 
> > DocStram said:
> ...


 
Well at 73 I'm likely older than you are - If you're older than that, change it to "old timer".  This is also the first time I've ever had anyone take being called "son" as an insult.  Methinks you are too sensitive, no insult intended in my post.


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## DocStram (Mar 18, 2011)

Smitty . . .  apologies accepted.  Thank you.


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## jskeen (Mar 18, 2011)

Smitty37 said:


> And if there are no sellers the buyers will also go elsewhere.
> 
> That may be true, but is very unlikely to happen, BECAUSE....anywhere there is a buyer willing to spend money, somebody will find a way to take it and make a profit.  May not be the same sellers that were doing it last year, and not all of them will be able to continue making a profit, but NO WILLING MARKET GOES UNSOLD TO FOR LONG.
> 
> ...



That's how it looks to me, but I'm always interested in hearing somebody else's viewpoint, even if I don't decide to convert to it.


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## Russianwolf (Mar 18, 2011)

Okay I'll through out some hypotheticals so we can make this less blurry.


I have a product that cost me $50. Shipping it anywhere will cost $5

Ebay will charge me a listing fee of $1 (hypothetical number for the example) for an auction and an additional $1 for a buy it now. Final fees are 5% lets say for this example.

GO!!!!


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## Russianwolf (Mar 18, 2011)

So minimum costs, if the thing sells are $56+(.05*selling price) for an auction or $57+(.05+selling price) if a buy it now.

I see the following scenerios.

1) Auction + Shipping
2) Auction with Free Shipping
3) BIN + shipping
4) BIN with Free Shipping

For 3 & 4 its simple, I make my BIN cover costs + whatever profit margin I want. I will win if it sells, if not I'm out $2.

1 & 2 are more tricky however.

In 1, if the item sells for more than $56+(.05 SP) then I am in the good and the buyer is in effect paying the fees indirectly. If it sells for less than that, I'm in the red and I'm paying the fees. The buyer got a deal.

In 2, similar, but now the postage equals $5.25 since I'm having to pay fees on it as well.

If it doesn't sell, I'm out $1 either way.

So, in my mind, If it sells at a profit, the buyer is paying the fees indirectly. If it sells at a loss, then I'm paying the fees. I know for instance that some auctions can sell at a price that doesn't even cover the fees.


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