Buyers frustrated with EBay and now even the Sellers – What this means!
EBay has come a long way in last 3 years, new policy changes, basically changes to the way EBay does business o every day bases.. I myself am a eBay seller and I do allot of my shopping on eBay as well and I don’t like what is happening on both ends.
As a seller I feel like I am just getting taken for a ride by eBay. EBay decides everything to favor EBay. No matter what you do or not do, their actions are always the actions that reflect best on EBay.
Few biggest changes is that the Buyer is always right, PayPal is the only way of payment and increased fees. Buyers think that only the seller pays the fees, and that is partly true, but what buyers don’t realize is that those fees impact buyers in many ways.
Sellers bay on average 12% fee on a sold item. The fees varies from item to item but here is the basic brake down.
Fee for listing a item: $0-$2.50
Sales fee on item: 6-10% of final sold price
Shipping fee: 6-10% on total shipping cost charged by seller
PayPal payment fee: 2.9% plus $0.30 per transaction, 3.9% transaction fee plus a fixed fee based on currency received.
So lets get a visual on the fees. So lets say I am selling a new IPhone 5S and I normally is costs $600 for a new one without a contract.
So I want to sell it for $600 as well and I will ship it priority mail for $9 + $7 + $16 for signature and insurance. Then I need to pay the fees if It sells
Listing fee: .75 + (final sales fee 10%) $60 + (Shipping fee 10%) $1.60 + (PayPal payment processing 2.9% from $616(total money transfer) $18 = an the total is
$79.35 in total fees. That is a lot!!!
New Life Auctions has created fee calculator that you can play around and determine what your fees are
So what does this mean to A Buyer. If I am selling a item I am selling it to make profit, not take loses, so what I will do is increase the price in order to offset my cost of fees. I may not sell a item fast as I originally wanted but evenly I will sell my item at a higher price. What a lot of buyers don’t realize that you sometimes pay more on eBay than just going to your local store.
What you are also seeing is that more and more big companies start to sell on EBay, kicking small sellers of as they can no longer compete.
In few more years you will see that the only sellers on eBay will be Tigerdirect, Best Buy, Buy.com and so on.
If you have been on eBay for the last 10 years I am sure you noticed that there are no more great bargains on used electronics. The only thing eBay is still good is on buying electronic accessories.