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Quote:***A Message from Bill Cobb – eBay.com and eBay Motors Fee Adjustments*** 

January 03, 2007 | 03:00PM PST/PT

Bill Cobb
Hello everyone...An important part of any business strategy is a regular evaluation of our pricing structure. From time to time, we make pricing changes to correct unhealthy dynamics in the eBay marketplace, as was the case last July. Typically, however, we make changes on an annual basis at the beginning of the year.

Today, I'm here to tell you about fee adjustments for eBay.com and eBay Motors which go into effect on January 30, 2007.

Core Auction-Style and Fixed Price Listing Fees:

Insertion Fees
We're increasing the Insertion Fee for the $1.00 to $9.99 level from thirty-five cents to forty cents.

Final Value Fees
We're increasing the Final Value Fee for the $25.01 to $1,000.00 level from 3% to 3.25%.

Please note that there are no fee adjustments for eBay Stores or Store Inventory listings.

eBay Motors Fees
The Insertion Fees and Final Values Fees mentioned above will also apply to eBay Motors Parts & Accessories categories.

For eBay Motors Vehicles categories, we are making these adjustments:

    * The Transaction Services Fee for both Motorcycles and Powersports is increasing from $30.00 to $40.00.
    * The Transaction Services Fee for Cars & Trucks and all Other Vehicles & Trailers categories is increasing from $40.00 to $50.00.
    * The Motors Reserve Fee is changing from a flat $5.00 to 0.1% of the reserve price, with a minimum of $5.00 and a maximum of $10.00. (The Reserve Fee is refunded when bidding meets the reserve price.)

Let me say that, while we believe these changes are modest, we consider any changes that may impact our sellers with great care. These adjustments are the result of careful analysis, and we believe they're the right thing to do to keep the marketplace strong for our eBay.com and eBay Motors sellers.

To learn more about each of these changes, I invite you to read our Frequently Asked Questions and our eBay Fees Help page. (To learn more about Canada fee adjustments, please check the Announcement Board for eBay.ca.)

A Successful Online Holiday Shopping Season
As I've said many times, one of our most important jobs here at eBay is ensuring that we're driving buyers to the site. This online holiday shopping season was a big success, and I want to acknowledge the outstanding efforts this last quarter from our marketing team led by Gary Briggs. Our integrated "IT" campaign performed well for the second year in a row, reaching our targeted shoppers an average of 13 times per person.

In fact, according to Nielsen/NetRatings, overall traffic to online shopping sites on the day after Thanksgiving (known as "Black Friday") grew 12% from last year - and eBay was shoppers' number one destination that day with an impressive 7.5 million unique visitors. But the good news didn’t stop there. This momentum continued through the weekend to "Cyber Monday" – the Monday after Thanksgiving which has become associated with peak online holiday shopping activity. I'm pleased to report that Nielsen declared eBay the most visited internet site that day, too, with 5.6 million visitors.

Of course, our shelves need to be well-stocked when the buyers arrive, so these results are testament to the partnership we have with our dedicated sellers. We can all be proud of our joint success in pleasing shoppers with whatever "IT" was this season.

More to come in 2007
Looking ahead at the new year, it's never been more important that eBay deliver value through our marketing investments, product initiatives, and Trust & Safety strategies. Times have changed from 11 years ago when we were a small innovative idea on the internet. Quite frankly, some of the problems demanding our attention are more complex. But what inspires me every morning - and what I hope inspires you, too - is that the opportunities for eBay and its Community to succeed by celebrating what makes us unique have never been greater.

Later this month, I'll be addressing a group of eBay sellers who will be here in person in the San Jose area, and I'll be sharing some of our plans and priorities for the coming year. My keynote speech will be available via a recorded Webcast for our whole Community to tune into. And we'll also be following the event with more announcements on specific initiatives. I think you'll find we're taking a surprisingly fresh look at some of the old challenges, and I'm excited about the road ahead.

Please stay tuned via the Announcement Board for more details on the availability of my Webcast. I hope you'll be able to listen in.

On behalf of everyone at eBay, I wish you all a very Happy New Year.

Sincerely,

Bill Cobb
President, eBay North America
Quote:Please note that there are no fee adjustments for eBay Stores or Store Inventory listings.

Told ya so!  Told ya so! Yellowtonguerazz Yellowtonguerazz Yellowtonguerazz
Quote:eBay! Raises! Core! FEES!

Next week is the one year anniversary of my final eBaY sale.  :turkey2:
I'm so glad that I couldn't care less  Smileylol

My site sales are really rockin' w/ no fees and no Google adwords. I'm a happy camper.  Kim
Quote:I'm so glad that I couldn't care less 

Ditto.  The last eBay fee hike that had any measurable effect on my business was 2004.
I am sooo glad I left FEEBAY!!

My last sale on eBay was well over a year ago, and I never will go back Headbang
Surprise. We're so used to this that we call it the "annual fee increase" the way we all used to reference the "annual after Christmas FLD."

Screw eBay. I've been gone for a long time now.
Well, a piddly little fee increase that does not affect stores. And I was all set to pull a pile of stuff out of ebay - now I'll let it run another year.

I am pleased to report that my private store held its own against eBay this season - pretty good, I think for the second year, but not time to cast off yet, fee gods willing.

Such a piddly little fee increase - seems like it would not be worth all the "another *%%# Thefinger@&* ebay rip-off " flak they get about it. I guess raising fees has become such a habit that they just cant stop.

      Smileykoolaid          Smileykoolaid          Smileykoolaid          Smileykoolaid            Smileykoolaid


Just reaffirms that I did the right thing, closing my store.
Press coverage of the fee hike:

Quote: "They're trying to squeeze a little bit more from the base business," Pacific Crest Securities analyst Steve Weinstein said Thursday. "That goes against trying to reinvigorate growth in the core."

Still, Weinstein concurred with several other analysts who said the increases announced late Wednesday, which will take effect Jan. 30, are unlikely to prompt a significant backlash among eBay users and probably will generate some increased revenue for the company.

Several users appeared resigned to the increases Thursday...
Quote: Wingo concurred that sellers generally are resigned to the latest increases, but he added that the trend toward higher fees will prompt more people to consider expanding their online presence to additional "channels," either by listing with other online marketplaces or by opening their own online stores.

"It's easy to make (eBay's fee increases) seem like they're not much" by describing them as merely an extra nickel or a quarter-percentage point uptick, Wingo said. "But it's substantial" for users who sell higher-priced items...

full article: http://www.smartmoney.com/bn/ON/index.cf...00835-1449
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