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Ebay Selling on Stores - EBay going to up Fees for Sellers with an eBay Store

July 20th, 2006

Ebay Selling on Stores - EBay going to up Fees for Sellers with an eBay Store

Ebay Stores

Ebay announced 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.

Other competing 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 eBay stores.

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.

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Nicole Wilson
Best Syndication

eBay Books

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