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eBay raises seller fees by up to 300%

Longer auctions hit the hardest

Online auctioneer eBay has outlined massive changes to its pricing structure. Insertion Fees and Final Value Fees have been altered, which will affect all eBay sellers. Users selling items under £15 are worse off under the new pricing, as eBay appears to be promoting high-value sellers.

eBay claims that the price changes continue its “commitment to moving the cost of selling an item on eBay.co.uk away from the front-end insertion fee and increasing the final value fees, so that the majority of fees are paid only when you successfully sell an item”.

The company is also providing more tailored pricing options to fit the different sizes and business models of Shop owners and Buy It Now format sellers. It claims that “this will help provide a more vibrant market place with even greater choice for buyers and greater opportunities for all sellers”.

The changes become effective on 24th September 2008.

eBay's price hikes

Insertion fees for Buy It Now listings include these changes. Items costing less than £1 used to cost 10p to insert. This has been raised to 40p – an increase of 300 per cent. All items under £15 see a similar rise from 15-25p to 40p.

However, sellers are better off when selling items over £15. Insertion costs then drop from 50p to the standard 40p. Items selling between £30 and £100 currently cost £1 to insert. This falls to 40p. Items over £100 cost £1.30. Again, this drops to 40p.

Buy It Now sellers are hit again when it comes to Final Value fees. Items sold under £30 currently incur a charge of 7.5%. This rises to 9.9%. A sliding scale means that top-value Buy It Now items sold for over £600 incur a 1.9% Final Value fee (the same as currently charged).

There are no changes to Final Value fees for Buy It Now items listed in the Technology and Media categories.

Final Value fees for Auction listings are also raised. Items costing under £30 go from 7.5% to 8.75%. Items under £600 rise from 4.5% to 5.25%. But items over £600 go from 1.9% to 1.5%.

eBay has also announced Listing upgrades. It will be retiring the Gallery Featured listing upgrade across all categories and replacing it with Featured First, a new feature that will allow users “to enhance the visibility of their items in search results”.

Gallery Plus fees go from 95p to up to £2.85 for auctions of 30 days or over. Highlight fees go up from £2.50 to £7.50 for similarly long auctions. Charges remain the same for shorter auctions.

Featured Plus! Fees rise hugely on long auctions, increasing from £9.95 to £44.95. The new Featured First option costs up to £134.95.

International visibility “will be removed for Buy It Now”.

eBay Shops subscription fees are also increased. Basic shops currently cost £6/month. This rises to £14.99/month. Featured shops go from £30/month to £49.99/month. And Anchor shops rise from £300/ month to £349.99/month.

eBay will be retiring the Shop Inventory format and replacing it with Buy It Now. It will also be extending the listing duration available with Buy It Now to the pricier 30 days or Good 'Til Cancelled.

The placement of seller’s listing in search results will be affected by their Detailed Seller Ratings score and the number of items they sell from a single Buy It Now listing. The more items they sell, the more likely that listing is to appear higher up in search results.

For a full list of UK eBay price changes click here.


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