eBay Changes Fee Structure, Seller Standards and Feedback Policies

eBay provides internet platform of choice for global commerce, payments and communication. eBay has changed fee structure and seller standards in 2008, which were already in effect from late February and the feedback policy came into effect from 19th May, 2008 onwards. Earlier to this, the changes were made way back in 2006. The following are the important points in the message from Bill Cobb, President, eBay North America.

Fee Structure: The final value fees were revised for both Auction-style and fixed price listings and for Store Inventory listings.

The final value fee for Auction-style and Fixed Price listings is changed as follows-

• Not changed for item not sold

• The final value fee increased to 8.75% (earlier 5.25%) of closing value for the $0.01–$25.00 range.

• For closing value for $25.01-$1,000, final value fee was up from 5.25% to 8.75% of the initial $25, plus 3.5% (earlier 3.25%) of remaining closing value balance.

For closing value over $1,000.1, the final value fee changed to 8.75% (earlier 5.25%) of the initial $25, plus 3.50% (earlier 3.25%) of the initial $25.00–$1,000.00, plus 1.50% of the remaining closing value balance ($1,000.01–closing value).

The final value fee for Store Inventory listings is changed as follows-

• Not changed for item not sold.

• For closing price $0.01-$25.00, the final value fee increased to 12% from 10%.

• For closing price $25.01-$100.00, the final value fee increased to 12% (earlier 10%) of the initial $25.00, plus 8.00% (earlier 7%) of the remaining closing value balance ($25.01 to $100.00).

• For closing price $100.01-$1000.00, the final value fee increased to 12% (earlier 10%) of the initial $25, plus 8% (earlier 7%) of the initial $25.01-$100.00, plus 4% (earlier 5%) of the remaining closing value balance $100.01-$1,000.00.

• For closing price over $1000.01, the final value fee is increased to 12% (earlier 10%) of the initial $25, plus 8% (earlier 7%) of the initial $25.01-$100.00, plus 4% (earlier 5%) of the initial $100.01-$1000, plus 2% (earlier 3%) of the remaining closing value balance.

A positive change in fee structure is lowering insertion fees on auction style and fixed price listings. It is also now free for all listings at Gallery picture feature.

Seller standards:
Detailed seller ratings (DSR) will play a key role in determining seller standards. A seller needs to have a minimum 4.5 score in all four DSR criteria over a 12 month period if he is to be designated as a power seller. There will be a decreased listings exposure in search for those who have low DSR.

Feedback Policy:
Sellers can only have positive feedback for buyers. eBay will also remove negative and neutral feedback when a buyer or seller is suspended. The number of days a buyer can leave feedback reduced from 90 to 60 days. The feedback percentage will be based on last 12 months, although the total count remains for lifetime.

The changes made by eBay to its fee structure, seller standards and feedback policies were not acceptable by a large group of sellers. It lead to a week long boycott of eBay by a group of sellers and made some of them to look for other alternatives because of the fee hikes. But most of the sellers adjusted to the changes made by eBay as it considered as the #1 place to buy and sell products online.

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