Prediction: Store Fee Increase in July



http://ebaystrategies.blogs.com/ebay_strategies/2007/03/prediction_stor.html

PREDICTION: Store Fee Increase is coming...

Ok, I'm going to put a prediction out there based on what I'm
seeing, hearing and know about how eBay thinks. eBay Stores
listing fees are $.05 for < $25. and $.10 for > $24.99.
They used to be $.02 before the 'great rebalance of 2006'.

I see eBay store listing fees going to:

..10 for < $25
..20 for $25-$100 and
..50 for > $100

I don't know about the specific amounts, but feel we're going
to get a new tier and the old tiers will be %-wise increased
dramatically.

Ok why am I saying this? (and no I don't want it to happen,
but I think it's unavoidable).

Evidence 1: Stores growing too fast (still)

I've been watching the listing data from the Wall st. guys
closely and stores continue to grow much faster than core.
eBay hit the brakes, they slowed down and now they are
climbing again.

Evidence 2: Core not growing fast (still)

eBay desperately needs core listings to grow and views that
stores cannibalize core listings. This is where they get it
wrong because they don't understand seller behavior, but
they still view that seller's are choosing stores over core.
(the opposite is the case, sellers go to store if core
doesn't work).

Evidence 3: Wall St.
In a number of presentations to Wall St., eBay has hinted
this is coming this by saying things like the controversial
"unproductive listings".

So the only question I have is when is it coming?
They announced the last hike July 20th. I'm going to say
they announce this with the Q1 results in April.

The trick is we have eBay Live in June so they can't do it
in June or May (30 day window for fees to start). If they
want to act fast they need to do it a good bit before then
for the wind to blow over (so May/June is out). That leaves
either April with the Q1 results or post eBay live like they
did last year - July timeframe.

I'm going to vote April because I don't think they can afford
to wait till July, they need to slow those stores and grow
the core.
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why cant they see the furture is in stores.
today people just want to go in buy,pay, and recieve.
they dont want to wait 7 days to see if they won. they
want move as fast as possible..wish they would just put
in a shopping cart..put us into search better and they
can sit back a reap the benefits... but they wont..they
are to caught up in what worked in the past
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I betcha he's right on target. I also betcha it'll be July,
so ebay doesn't have to hear it at "live," (or) is it Dead.
---------

I don't think he's wrong that they are going to raise fees --
I would say that would happen in July again. I'm not sure the
increase will be as drastic as he states.

It is good business though, to make plans right now how you
will react when this comes down. If you've been putting off
looking for a webstore delay no longer and I would suggest
looking into G**gle's new addition to Ad Words called PPA
(Pay Per Action)
--------

if they're so worried about lack of core listings, then why
is listing in core SO EXPENSIVE!!! :( THAT'S the reason
i'd rather list in my store than core!
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Any increase in Fees will have to be passed onto the buyer.
That means ultimately fewer buyers, and the St Elsewhere's become even
more attractive.
Core is overpriced IMO by at least 50%.

IMO for core to succeed then insertion fees need to disappear,
---------

.



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