eBay Imposes Maximum Shipping and Other Ways To Increase FVF Fees
It looks like eBay has figured out a way to get sellers to pay a final value fee (FVF) on shipping charged for an item. Today on their pages and in an email message sent to sellers we learn that eBay is not finished trying to alienate sellers as it tries to turn the auction site into a fixed price department store.
A change that will cause seller uproar this time is that in the Books, Movies & DVDs, Music, and Video Games categories (at least to start with more will be added) there is now going to be a maximum charge allowed for postage and handling. eBay has indicated that this is one of the primary complaints of the buyers on the site and they are trying to make the buyer’s experience more pleasant so there are a greater number of conversions. Translated this means they want more final value fees.
On the FAQ found many layers deep… There is a question posed asking what if my actual costs are higher than the maximum allowed… The response:
- ” When selling a bundle or quantity of items, you can use the shipping calculator to charge actual shipping charges
- When selling via fixed price, include all or part of the shipping cost in the item price
- When selling via auction:
- Continue to list your item with the same start price and a shipping price at or below the maximum shipping cost. Many of our sellers have success with auctions, even at free shipping, because their item looks more competitive to their buyers.
- If your actual shipping costs are higher than the maximum shipping & handling cost, start the item price higher to cover your shipping cost. This technique will minimize risk that you will lose money on shipping.
- Move your item to fixed price and include all or part of the shipping cost in the item price.
- If you are selling a bundle or quantity of items, you can use the shipping calculator to charge actual shipping charges”
Any time you include shipping costs as part of the cost of the item eBay wins. These charges now become costs that they get to charge a FVF. So now sellers will have the privilege of paying eBay a fee for not only the listing and the sale but also for the shipping of the item.
The posting goes on to encourage sellers to make shipping free and as an added bonus, Powersellers will get double the discount bonus on their FVF fees for the allowed time frame, you’ll get free Subtitle upgrades AND higher search rankings with best match. Don’t forget now that someone pays for shipping somewhere so most likely you’ve included it in the price of your product and NOW as an additional added bonus eBay gets to collect the FVF as well.
As a final KICKER (translated - bend over and lets see how far I can bury my boot) eBay will no longer allow checks and money orders as a form of payment. “Checks and money orders no longer allowed: Beginning in late October, we will no long allow checks or money orders as payment methods on eBay. Only approved electronic methods will be allowed. In January 2009, all accepted payment methods will be integrated into eBay Checkout. For buyers, this change means a more consistent and secure payment experience. For sellers, it means faster payment and fewer unpaid items. (Note this policy will not apply to Vehicles and some categories in Real Estate, Mature Audiences, and Business & Industrial).”
Since the smaller sellers typically do not have their own credit card accounts this means that eBay through their Paypal company will also get a piece of the payment activity.
Again, all of these changes are under the guise of an improved experience for sellers and buyers. I suspect there is some pressure in a poor economy to continue performing for investors as well and if they can put a positive media spin on increasing the ways they can gouge their sellers for more of their profit then more power to them.
I’d love to hear your thoughts of these recent changes…
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Wow! My eBay selling days are drawing to a quick end. I don’t sell much, but these changes will make it near impossible for me to sell with any confidence. For very expensive items, and unique collectibles that I sell, I really prefer the buyer to check out the item in person and pay with a bank check or cash. But I also don’t want to give eBay or a credit card company an additional 3% of my profits.
Ridiculous!
ebay is just like an oil company. it’s all about the profits. people are getting sick and tired of all their fee “adjustments”. i do sell on ebay but it’s been a long time since i had any real confidence in a future there.
it a mammoth place. but really no one, except amazon, has even come close to doing what they do.
they invented something akin to the wheel, fire, television, the internet, the computer, the microchip.
still, they are to be commended. my guess is that it is a near-impossible company to manage. they still have those who love it and make their fortunes, however dwindling, from it. ebay will always have their detractors too.
this is they way ebay will always be. like wal-mart, the irs, a red state politics or a blue state beliefs, malls, ebay will always be in the public eye with much criticism along with some who praise it to the mountain tops.
but PLEASE don’t vote for mc cain. he is going to be terrible for this country. he’s clueless in a $300 shirt. sarah palin went to 5 colleges in 4 years to get the easiest degree obtainable. god help us if they get behind the controls.
I’m not a fan of hijacked comments (political on an eBay post) but I will say look at the alternative… a community organizer, a first term senator that has spent 18 months of his 2 years campaigning, no real experience at all. He has gifted speech writers and he is qutie eloquent but I don’t see a lot of substance. His own running mate said he was not qualified and lacked experience(prior to becoming the running mate of course).
Back on track now… eBay… You are right they do what they do… and they are now trying to become what Amazon does and does well. No reason to go to eBay since Amazon already does it. Let eBay do what they do best, let Amazon do what they do best. I’m tired of all the eBay crap. I have officially stopped selling there.
eBay is a dead enterprise … on life support now, but we all know how it’s gonna end.