eBay’s Fees are Way Too High for The Service They Provide

95
0
SHARE

Having made it to PowerSeller several times, I know just how hard it is to grind on eBay. But is truly worth it?

Paying ridiculous fees for a service where you’re constantly in fear of losing your account is awful. And we’re the sellers, right?

They stuff their face with your money

eBay’s fees:

  • 10% of the full sale price
  • £69 per month for a featured shop

Let me give you an example: you sell £5000 worth of stock every month, for a year.

By the end of the year, you will have paid eBay a monstrous £6000 in final-value fees. That’s before the rest of the fees and potential taxes…

Then, there’s the monthly subscription for a featured shop to add-on, which comes to an additionally ridiculous £828.

So, we’re talking a total of £6828 in costs, before we even think about marketing costs or any potential taxes you might face based on your circumstances.

There are cheaper shop options, but if you’re a serious seller with a decent level of stock, a featured store is a minimal requirement in every aspect.

Without a featured shop, you’d be paying even more fees.

They should charge less

Their service is mostly automated; think about it, they host their website, maintain it, and use software to manage the listings, the payments, and all that stuff. The majority of the labor work comes from the sellers, the people creating the listings and dealing with the customers.

With all due respect, the cost of servers on eBay’s end is likely monstrous. And they do have to pay their staff’s wages, so I’m not calling for a free eBay by any means.

But when they’re raking in huge profits from their ever-growing pool of sellers, they should reduce costs to make their service more cost-efficient for everyone.

Related:  Software Engineering & The Software Crisis, Introduction

The point still holds in my mind, they could afford to make their service more cost-efficient. Heck, they’d attract more sellers, and the people they’ve driven away would likely come back if news broke of lower fees.

The brick wall they call “Support”

When you finally get round to contacting their support, you’re faced with a brick wall of weak English-speakers.

They seem to want nothing more than to transfer you to someone else in their office, who equally wishes to waste your time with generic answers found on eBay’s FAQs.

When you’ve got verified interest in my sales–through providing the platform and taking 10% of all REVENUE; not profit, 10% FROM YOUR REVENUE–the service should be stellar.

You’re paying for paranoia

After climbing the PowerSeller ranks, you’re under more and more scrutiny on every sale.

I agree it makes eBay a better place, and without it, we’d still be getting empty PlayStation boxes, but come on…

If 0.5% of your transactions have some problem, major or minor, you’ll lose your status.

And when you lose your status, you lose your traffic, you lose your discounts, you more or less ruin your business on eBay.

To put it into perspective, if you sell 200 items, and 1 of those things arrives late or is damaged in the post, then you’re no longer within range of the defect rate. And you will not stand as a top-rated seller, losing your PowerSeller title.

Think about it

Think about the points I’ve raised, and get back to me with your opinions.

I’m obviously very biased, having suffered the traumas of eBay’s system for many years, but some of you may think otherwise.

Until next time,

Josh