<P>After doing some extensive number crunching, I have come to the realization that eBay is effectively eliminating their "Stores" from their system. They are doing this by literally pricing the "Stores" out of business.

<P>Recent increases in fees for "Stores" has made it totally uncompetitive with the standard auction/fixed price format. The chart below shows the listing fees and final value fees for items at various price levels, for both the auction/fixed price format and store items. As you can see, once you hit above the $5.00 mark (approximately), the fees for "Stores" become higher than for auction/fixed price. Bear in mind, this chart does not even factor in the $15.95 monthly!!! fee charged to maintain a "Store". If you are selling $3.00 items in your store, you save .16c per item vs. auction/fixed price format items. Factoring in the maintenance fee, you would need to sell 100 items through your store to balance your "Store" fees vs. auction/fixed price fees. Now, if you can sell 500 or 1000 $3.00 items per month, then perhaps a store would be better. But unless you are an extremely high-volume seller of low value items, the "Store" feature is not financially adventageous.

<P>There is also need for consideration of time. "Store" items are listed for 30 days. Auction/fixed price items are listed only for 7 days. You can relist for an additional 7 days, and if the item sells during the "re-listing" period, you will not be charged a second listing fee. If the item stays listed for more than 14 days, you might consider re-evaluating your price/title/description to make your item more sellable.

<table border=0 cellpadding=0 cellspacing=0 width=468><tr><td width=64></td><td colspan=3 width=192><u>auction/fixed price listing</u></td><td width=20'></td><td colspan=3 width=192><u>store item</u></td></tr><tr><td></td><td>listing fee </td><td>final value </td><td>total fees </td><td></td><td>listing fee </td><td>final value </td><td>total fees </td></tr><tr><td>$3.00 </td><td>$0.35 </td><td>$0.16 </td><td>$0.51 </td><td>&nbsp;</td><td>$0.05 </td><td>$0.30 </td><td>$0.35 </td></tr><tr><td>$5.00 </td><td>$0.35 </td><td>$0.26 </td><td>$0.61 </td><td></td><td>$0.05 </td><td >$0.50 </td><td>$0.55 </td></tr><tr><td>$7.50 </td><td>$0.35 </td><td>$0.39 </td><td>$0.74 </td><td>&nbsp;</td><td>$0.05 </td><td>$0.75 </td><td>$0.80 </td></tr><tr><td>$10.00 </td><td>$0.60 </td><td>$0.53 </td><td>$1.13 </td><td></td><td>$0.05 </td><td>$1.00 </td><td>$1.05 </td></tr><tr><td>$13.00 </td><td>$0.60 </td><td>$0.68 </td><td>$1.28 </td><td>&nbsp;</td><td>$0.05 </td><td>$1.30 </td><td>$1.35 </td></tr><tr><td>$17.00 </td><td>$0.60 </td><td>$0.89 </td><td>$1.49 </td><td></td><td>$0.05 </td><td>$1.70 </td><td>$1.75 </td></tr><tr><td>$22.00 </td><td>$0.60 </td><td>$1.16 </td><td>$1.76 </td><td>&nbsp;</td><td>$0.05 </td><td>$2.20 </td><td>$2.25 </td></tr><tr><td>$30.00 </td><td>$1.20 </td><td>$1.46 </td><td>$2.66 </td><td></td><td>$0.10 </td><td>$2.85 </td><td>$2.95 </td></tr><tr><td>$45.00 </td><td>$1.20 </td><td>$1.91 </td><td>$3.11 </td><td>&nbsp;</td><td>$0.10 </td><td>$3.90 </td><td>$4.00 </td></tr><tr><td>$60.00 </td><td>$2.40 </td><td>$2.36 </td><td>$4.76 </td><td></td><td>$0.10 </td><td>$4.95 </td><td>$5.05 </td></tr><tr><td>$75.00 </td><td>$2.40 </td><td>$2.81 </td><td>$5.21 </td><td>&nbsp;</td><td >$0.10 </td><td>$6.00 </td><td>$6.10 </td></tr></table>

Interesting analysis. When ebay stores were first on the scene they were very cheap compared to the normal listing fees. They have raised the basic fee considerably in the past year or so.

And then when you add on the paypal fees, you might as well kiss any profit margin goodbye.

Are Ebay actively trying to purge stores out? Or are they just harvesting the field to the ground? If it's the latter then they'll be shooting themselves in the foot.

And if you're not in the U.S., paypal takes a few more percent out of your net.

I hope Ebay doesnt end up having alot of stores "go out of buisness".... I can understant that Ebay needs to make money to take care of their overhead expenses, but not at the price of losing Ebayers with stores. The guy I usually buy my banknotes from runs an ebay store, and he has always been very good..... I hope Ebay doesnt run him out of buisness....

I believe it is the latter. They are literally "milking the cow dry!!"

Lets hope that Ebay comes to their senses soon. They are killing the profitability of alot of their stores and the other listers as well.....


I would love to put some items up on Ebay, but they take too much money.




KFC

They get you if you're in the U.S. too. I eat roughly 5% when people pay me with paypal. Sure it's convenient, but I think their fees are a little excessive.

Well not as much. Those of us outside the U.S. have to lose an additional 1%, not to mention currency exchanges are done through them, which are usually 2-5% worse than bank rates.

I have to wonder if they are attempting to force the less profitable stores off of ebay. There are way too many stores and it can make "shopping" frustrating.

Right now I'm wondering if they want anybody to sell. 20 minutes and still on the first page to list an item.