Ouch! That hurts! Heard it on CNN. Good for the seller but not for affiliates. Unless they increase cookie time to a year. Bye bye eBay!
I already started a topic on this, you might want to look it up... I doubt they'll cut the fees after reading everyones input on the topic...
Yeah, I participated in your thread the other day but then we didn't know by how much they were cutting their fees, just the news. I'm shocked. 50%
If you go to CNN.com and read the story, I think this will ACTUALLY benefit affiliates in many ways. First, it says its cutting the insertion fees (I believe it said around 50%) off. BUT, the final value fees percentage are going up a bit. Anything under $25.00 that sells will be 8.75% instead of 5.25% SOOOOO, What does this mean exactly? More auctions in which we get paid for. Think about it. We get paid $25.00 for every ACRU. If there are MORE auctions, then the more opportunities for buyers. NOW... when it comes to the final value fees, we get a bonus on that. If the final value fees goes up, then the MORE profit we get (because eBay will gain a bigger portion of the final value fee.) At least this is how I look at the glass... neither full 'nor empty
how so, the affiliates are paid on the final commission fee, not listing fee.... lower listing fees and higher commissions are good....
I guess we will not be affected, it appears. I thought commissions were based on both, insertion and final. Boy, ebay sellers really have a mad-on! http://forums.ebay.com/db1/thread.jspa?threadID=1000635434&tstart=0&mod=1201633542839
Relax guys, I'm sure eBay has done a lot of analysis on these rate changes and how they will affect their bottom line. There is no way they would do this if they knew it would cut their profits by 50%, investors would not approve of it.
The fact is this: Your paid a % commission of whatever eBay makes. Now, if the commission goes up to 8.75% and someone sells something that is $20.00 and the insertion fee is cut to .10 cents per insertion... your looking at $1.85 for that. Divide by 2 for the 50% commission and you get .92 cents NOW... compare that to what they have now... something sells at $20.00 and eBay makes $1.25 from it. You only get .62 cents Might be a .30 cents difference (which might look small) but every penny counts
Yeap, it looks like at the end of the day eBay profits will increase with these new rates, meaning more profits for all the affiliates.
I got caught up in the headlines on CNN (TV) "Ebay cutting its fees by 50%". I said WTF????? Then found out it was just listing fees, not FVFs. Let's see how this all plays out.
^^ Yeah, FVF are going ^^UP^^ ... they believe that this will be a benefit because people will feel better about re-listing if the item doesn't sell the first time around. Or something like that... you may want to check to make sure, the article is on CNN. com
This is exactly why I don't use ebay anymore. They are gouging the "little guys" with those kind of final value fees. Between these fees and what paypal takes, it's damn near usury. It's just not worth the effort any longer. Not for sellers like myself that just want to get rid of stuff. For power sellers, they'll never notice the difference.
I still can't get my head around this, how does Ebay pay us again? What's the final value fee. I always thought it was the final listing fee. Now I have no idea what I'm doing. Can somebody define to me what the final value fee is and how I can calculate it. Thanks.