Selling on Stores - EBay going to up Fees for Sellers with an eBay Store
July 20th, 2006
that they are going to raise the cost of their eBay online store. This
could further hurt eBay in the long run as profits are tough to come by
for online auction sellers.
According to a
report in the Boston Herald, Meg Whitman has acknowledged that “things
have been off kilter.” Ebay will be raising fees of the online stores
which have been causing less revenue from eBay auctions.
The fees will be
raised an average of 6 percent on August 22nd. The fees will
vary so some may be more and some less. There is an estimated 541,000
eBay stores. Ebay auction fees will not be raised at this time.
Whitman also wants
to buy back up to $2 billion in eBay shares over the next 2 years. This
will be eBay’s first buy back.
Ebay could be
threatened by the changing marketplace. Google is offering not only
free listings on their Google Base, but they have launched an online
payment system called GBuy which is very similar to eBay’s PayPal.
factors may be completely unrelated as the cost of gas goes up, so does
the cost of transporting the goods. This could push many sellers out of
the eBay selling market. High ebay auction fees can remove any profit
potential and could further explain why more have been listing on their
Amazon is another
competitor to eBay as the retailers would prefer a system that doesn’t
leave the buyer with a zillion questions. They order the products in
one stop shopping and the orders arrive from the different sellers.
Ebay has addressed
some of the issue for the retailers of new items with the eBay Express.
This is similar to the Amazon layout. For a long time many retailers of
new products wanted a separate section to sell their goods. Ebay
Express may have come around too late as many retailers have probably
moved over to Amazon.
Ebay still has a
lot of potential as there is still loyalty of both buyers and sellers.
Ebay reports that there are 203 million registered users. Whenever
there are buyers, there will be sellers. Ebay may actually need to
focus on where they began, in collectibles and antiques. This may still
be their strong selling point.