eSeller Solutions Blog

eBay Charges Sending Businesses Underground?

eBay often make changes to terms and conditions.  They are after all running a business and want to get the most revenue from anyone who sells with them. Whether you are a private seller or business, you do have to pay for the privilege of having one of the most captive audiences of buyers on the internet.  Everyone understands that, and while fees have always been a frustration, they are something we accept.  However, will the latest changes send businesses into meltdown and see them pretending to be private sellers – where the fees are cheaper.

Final Value Fee Discrepancies 

There are some glaring differences here, and businesses are not happy.  Taking clothing as an example.  The final value fee for a private seller is 10% (including VAT).  If that private seller registers for a basic private seller shop – not a business – they are rewarded with a cut of 2% on clothing and only pay a final value fee of 8%.  Already businesses are snorting with outrage.  But it gets worse.  If you are a business and have legitimately registered as a business when it comes to selling clothing, you will pay a whopping final value fee of 12%.

And that is just the tip of the iceberg.

A basic eBay shop starts at £19.99 a month for private sellers – but £25 a month for business sellers.

You can see why business sellers have got the hump.  Now obviously we do not endorse holding a private seller account when you are a business, but we understand the frustration.

Some Good News

While we are not quite sure why eBay are making such differentiation on final value fees, they do vary from category to category if you have a shop.

Private sellers pay a flat fee of 10% final value fees on everything.  There are some categories that benefit the business owner.  Vehicle Parts and Accessories attract a final value fee of 8.4% for eBay business shops, so if you are lucky enough to sell in this category, you will have a more favourable rate than the private seller.

Other categories come in at less – 9.6% which admittedly isn’t massively lower but does still save you money, is applicable on

  • Books, Comics and Magazines
  • Cameras and Photography
  • Computers, Tablets and Networking
  • DVD’s, Films and TV
  • Mobile Phones and Communication
  • Music, Sound and Vision
  • Video Games and Consoles

The best deal for shop owners is found in Holidays and Travel where business seller pay just 7.2%

It is fair to say that people are going to be tempted to save money where they can.  It may also put off anyone looking to open an eBay business seller shop, as once you upgrade your account, it cannot be downgraded.

Remember that there are other benefits to having an eBay business shop, including packaging and marketing extras, and of course, well set stores have a chance to gain in the marketplace because of brand and reputation.  If you are looking to set up a shop or want to spruce up your existing shop to boost sales, give us a call today.

Related posts:

  1. Changes to eBay Fees and eBay Shop Conditions – April 2017
  2. eBay Seller Release 12.1 has Arrived – What Does it Mean for You?
  3. Are your eBay listings 2017 ready?
  4. Pinterest and eBay – a Perfect Fit?
  5. Do eBay Sellers Really Have to Take PayPal?

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