eBay Reduces Fixed Price Insertion Fees, Bans Checks and Money Orders

[mandy]

Summary of changes:

Fixed Price: old $0.15-$4.00 new $0.35 (flat rate for unlimited quantity per listing)
Media category: old $0.10-$4.00 new $0.15 ($0.05 for category based listings)
Fixed price duration: old 7 days new: 30 days
Checks, Money Orders: banned as a form of payment


From eBay Ink

70% Reduction in Fixed Price Fee
Starting Sept. 16, eBay is reducing up-front risk for sellers of Buy It Now fixed price items by lowering the insertion fee to 35 cents and the listing duration will be extended to 30 days (rather than the previous 7). Additionally, listing fees will be lowered even further in the media categories (movies, music, games, books) for Buy It Now items to 15 cents (5 cents for catalog-based listings).

Listing fees will be incorporated more into the final value fees so that sellers only pay if they’re successful (although it does seem that consumer electronics, cameras and computers will have reduced final value fees.

Improved Search
Also starting Sept. 16, buyers will be able to spot bargains faster through an improved search function that serves up auctions and fixed-price items in a streamlined view.

Free or Reasonable Shipping
Over the holiday season, eBay will provide incentives to offer free shipping, including increased exposure in search and other discounts. PowerSellers can receive double their final value fee discounts — up to a 40 percent savings on their final value fees.

Paying on eBay
Starting in late October, eBay is moving to a fully electronic checkout process that’s faster and more reliable for buyers and sellers. As part of this move, checks and money orders will no longer be accepted on eBay as of October 2008 (buyers can still use these payment methods for pick-up if seller is open to it).

full article: http://ebayinkblog.com/2008/08/19/70-red...much-more/

Website setup by eBay to explain the changes: http://thebestplacetosell.ebay.com/
FAQ: http://thebestplacetosell.ebay.com/faq/

Auctionbytes commentary:

For items that sell for $25 or less, the FVFs decrease for items listed in the Computers & Networking; Cameras & Photos; and Electronics and Video Game Systems categories. However, once the pricing goes up to a certain level above $25, the FVFs actually increase in these categories due to higher percentage fees in the next tranche, and due to a restructuring of the tranches.

In all other categories, the FVFs are higher across each tranche, making for significantly higher commission fees in the BIN Fixed Price format, with FVFs in the Clothing, Shoes & Accessories and Parts & Accessories categories are the highest of all. ..

full article: http://www.auctionbytes.com/cab/abn/y08/m08/i20/s01

Auctionbytes blog with new fee tables and reader comments:
http://blog.auctionbytes.com/cgi-bin/blo...04794.html

Auctionbytes on media category fee changes:

Insertion Fees will be 15 cents for Fixed Price listings in Books, Music, DVDs & Movies and Video Games categories. It is also running a special promotion starting September 16 and running through the end of the year in which listing fees will be lowered to 5 cents when sellers use pre-filled item information (also called, Catalog)...

full article: http://www.auctionbytes.com/cab/abn/y08/m08/i20/s02

Auctionbytes on changes to search, seller standards, maximum shipping charges in media categories, and banning of money orders:

eBay is making two major changes to Finding (also called Search). First, it will change the mix of inventory on the site and will score fixed-price and auction listings separately in Best Match, but display them together on the search results pages...

In addition, eBay will expose auction or fixed-price listings more heavily in search results, depending on the category. For example, it would likely show more auction listings than fixed-price listings in collectibles categories. The changes are designed to ensure that auction listings are not buried underneath Fixed-Price listings...

Seller Standards
Beginning November 1, 2008, eBay will require sellers to have a minimum DSR of 4.3 across the board...

full article: http://www.auctionbytes.com/cab/abn/y08/m08/i20/s03

Randy Smythe on the changes:

Lets say an eBay seller wants to list 10,000 FP listings under the new rules on eBay and they also list 10,000 items on Amazon. For argument sake each item is $10 plus $2.98 for S&H. Total revenue per sold item is $12.98. We will also say they sell 1500 items in a month from each site.

Listing Fees and Subscriptions.

    * Amazon - $39.95 to list (Pro Merchant fee) - Cost per sold item is $0.03 ($39.95 / 1500)
    * eBay - $500 to list (10,000 x $0.05) Cost per sold item is $0.33 ($500/1500)

FVF is the same on both sites...

full article: http://rksmythe.blogspot.com/2008/08/do-...r-for.html
more from Randy Smythe: http://rksmythe.blogspot.com/2008/08/eba...mroll.html

[mandy]

The official announcement:

***A Message from Lorrie Norrington: New Pricing, More Incentives, and Other Changes to Bring More Buyers*** 
   
Hi everyone. As we head into the busiest shopping season of the year, I want to let you know about some bold changes we're making on eBay to lower your up-front costs and help you to sell more efficiently. Combined with the improvements we're rolling out to deliver a more consistent shopping experience this fall, buyers will see more bargains than ever, and keep coming back to eBay to buy from you.
Listing fixed price items is more affordable than ever
We understand you have a lot of choices when it comes to selling online. That's why we're changing our pricing to reduce your up-front cost to sell and align with your success. Starting September 16, we are lowering the listing fee for all items sold via the fixed price format to only 35 cents, and a special rate of only 5 cents through the end of the year for Buy It Now™ fixed price listings in the Media categories (Books, Video Games, Music and DVDs/Movies) using pre-filled item information. (See our new Fixed Price fee structure here.)

Accordingly, we are shifting the majority of our costs for most categories to the back end (final value fees), which you only pay if you're successful in selling an item. In extremely competitive e-commerce categories such as Consumer Electronics, Cameras and Computers, we're decreasing final value fees. This means we're giving you an even bigger incentive to list these types of items on eBay.

In addition to the pricing change, we're extending the listing duration of all Buy It Now™ fixed price listings to 30 days, up from seven with an option for automatic renewal. For sellers whose items that may take longer to sell, this change will be a huge cost reduction and time saver. Taken together, these two big changes – 35 cents for up to 30 days - represent a 70 percent reduction in listing fees on fixed price items.

As for Auction-style listings, we've decided not to make any changes. We believe this format is already a good deal, especially when you list with a low start price. Auctions will always have a place on eBay – they are a proven way for sellers to get the best value for their unique items, and they continue to receive significant exposure in search as they are sorted primarily based on time ending soonest.

So that's the big news: 35 cents for 30 days. We're virtually eliminating the up-front cost to list an item at fixed price on eBay. And this is not a promotion - we are serious about making eBay the most competitive marketplace online.

The changes we're making in pricing also mean great things for buyers. As more merchandise comes onto the site, we're applying our search technology in a way that will make their shopping easier, faster and safer. Essentially, buyers will see the most relevant, best priced inventory from our most trusted sellers – all of which allows them to buy with confidence. And when buyers find and buy what they want for a good price, you win.

Free shipping incentives in all categories, plus shipping charge limits in Media
Shipping is an important factor for buyers as they shop online – and expectations are higher than ever. Today, buyers want free or reasonable shipping. So, if you're already offering free shipping on items, we're going to reward you even more.

Beginning on October 1, 2008 and running through the end of the year, all sellers will receive the option to use subtitle for free, worth $.50 per listing, when free shipping is offered. And for eligible PowerSellers, you will receive double your PowerSeller Final Value Fee discount on these items, starting on the same date and running through the end of the year when you offer free shipping - this is up to a 40% discount! As always, items with free shipping will get a boost in Best Match search results.

In addition to shipping incentives, we're introducing limits on shipping and handling charges in one of our biggest and most competitive categories, Media (Books, DVDs & Movies, Music and Video Games).

This means that Media sellers will need to offer at least one shipping option within the specified limit. The dollar limits are fair, especially compared to what e-commerce competitors typically charge for shipping. With this move, we're also ensuring that buyers encounter fewer excessive shipping charges, which is the number one reason they leave the site.

See more detail on reasonable shipping and Free Shipping incentives.

Faster, more reliable checkout on eBay
Starting this fall, we're moving to an electronic checkout process that's faster and more reliable for sellers and buyers. As part of this move, checks and money orders will no longer be accepted on eBay, although buyers can still use these payment methods for item pick-up, at the seller's discretion. In addition, the electronic payment methods will be fully integrated into eBay checkout. For example, if a seller has an internet merchant account, a buyer will be able to directly enter a credit card and never have to leave the site.

Today, items paid with check or money order are 80% more likely to result in an item not received (INR) than those paid with credit card or PayPal. Also, buyers who pay with check or money order are 50% more likely to leave negative feedback than those who pay with electronic methods. So starting in late October, 2008, we are moving to 100% electronic payments - credit cards, ProPay, or PayPal.

This means that sellers will be able to offer credit card payments through their own merchant accounts, and payments through ProPay and/or PayPal, with all payment methods integrated into the checkout process on eBay. Seller will also get paid faster and be able to ship items quicker. And remember, for those buyers and sellers who use PayPal, we're backing every eligible transaction with our buyer and seller protections. (See more information on paperless payments and more on terms for the PayPal Buyer and Seller Protection plans.)

Updated seller standards – minimum DSRs
Finally, we're instituting a new minimum Detailed Seller Rating (DSR) requirement, as a way to further improve the customer experience for everyone on eBay. As of November 1, 2008, sellers will need at least a 4.3 across all four DSR categories, over the prior 30 day or 12 month period depending on volume, in order to list on the site.

Today, only a small fraction of sellers fall below this threshold, yet they are responsible for a high percentage of customer complaints, which hurts you and our marketplace overall. We're urging all sellers whose scores fall below the 4.3 threshold to use the next two months to adjust their business models and/or work on improving their DSR scores.

Overview page, FAQs: http://pages.ebay.com/sell/August2008Update/Overview/

Checks and money orders no longer allowed

What's changing with payments on eBay?
Beginning in late October 2008, checks and money orders will no longer be allowed as payment methods on eBay. All items appearing on eBay.com must be paid for using either:
PayPal (funded by PayPal account balance, credit card, debit card, bank account, PayPal Pay Later, PayPal Buyer Credit or eBay gift certificate)
Credit or debit card payment to a seller (through a seller's Internet merchant account)
ProPay
Payment upon pickup
In January 2009, all of the approved electronic payment methods will be integrated into eBay checkout. For example, if a seller offers credit or debit card as a payment option, buyers will be able to directly enter their credit card information securely in eBay checkout and their payment will be directly routed to the seller's Internet merchant account.

We are also working with other electronic payment providers currently included in our Accepted Payments Policy to integrate their services into eBay checkout in 2009.

Is eBay planning to eliminate third-party checkout?
Yes. We realize that checkout services offered by eBay Certified Solution Providers are valuable services to our sellers. Our plan is not to disrupt these services but to work closely with these providers to integrate them into eBay checkout in 2009. Ultimately, it's eBay's goal to have buyers always pay for their purchases within the secure confines of eBay.

What about Google Checkout, Checkout by Amazon or Amazon Flexible Payment Services? Will these payment methods be offered?
No. The electronic payment methods available on eBay already provide security and protections and are already used by the vast majority of our buyers and sellers. eBay will offer several other electronic payment options in addition to PayPal, namely ProPay to start, with more electronic payment providers to be added in coming months. Google's and Amazon's products and services compete with eBay on a number of levels, so we are not going to allow them on eBay. 

http://pages.ebay.com/sell/August2008Upd...index.html

Limits on shipping and handling charges for select categories
Starting in October, limits on shipping and handling charges* will be in effect for select categories. These maximums apply to the first flat-rate shipping service within or into the U.S. Sellers are required to offer at least one shipping option within the maximum and may also offer other options above the maximums for expedited or international shipping. Sellers can still use the shipping calculator to charge actual costs at or below the maximums or if their listings are not standard -- e.g., if you're selling an unusual large/ or heavy item, or a bundle-you can also use the shipping calculator to charge actual costs

the table of per category shipping charge maximums: http://pages.ebay.com/sell/August2008Upd...xShipping/

[amy]

listing fees will be lowered even further in the media categories (movies, music, games, books) for Buy It Now items to 15 cents (5 cents for catalog-based listings).

it does seem that consumer electronics, cameras and computers will have reduced final value fees.

The insertion fee and FVF changes are good news if your name is me.    They're not so good if you don't sell in those categories.

checks and money orders will no longer be accepted

I stopped accepting checks 7 years ago and money orders 5. My NPB rate dropped significantly when I went to 100% electronic payments.

Google's and Amazon's products and services compete with eBay on a number of levels, so we are not going to allow them on eBay.

It only took them 2 years to admit the real reason for banning Google Checkout.

[mandy]

A pair of Auctionbytes article on eBay's ban on money orders

Sellers are saying eBay's ban on checks and money orders is, in effect, a move to a PayPal-only policy - at least for the many sellers who don't have their own credit card merchant account. Buyers may be unaware of the policy that goes into effect during the holiday shopping season - and it's unclear what those shoppers who can't or don't wish to use PayPal and credit cards on eBay will do in response to the policy.

eBay confirmed on Wednesday that sellers may accept checks and money orders after the policy goes into effect - as long as the request comes from the buyer and sellers do not solicit paper payments in listings or via email...

full article: http://www.auctionbytes.com/cab/abn/y08/m08/i28/s01

eBay is moving to an electronic Checkout system, banning checks, money orders and postal orders, and more than half of sellers believe it would negatively impact their profitability, according to an AuctionBytes.com survey...

full article: http://www.auctionbytes.com/cab/abn/y08/m08/i28/s02

[mandy]

Announcement from eBay:

***A Message from Dinesh Lathi: New Pricing for Fixed Price Listings Takes Effect at Midnight, Plus Other Reminders*** 

Hi everyone. I'm here with a reminder that the new pricing structure for Fixed Price listings, as announced by Lorrie on August 20th, goes into effect at midnight Pacific time tonight. That means that sellers will be able to start taking advantage of the new 30-day duration for Fixed Price listings for the new low Insertion Fee of 35 cents, and just 15 cents in Books, Movies & DVDs, Music, and Video Games.

Also starting at midnight, and good through the end of the year, our special holiday promotion goes into effect for Books, Movies & DVDs, Music, and Video Games: Fixed Price Insertion Fees are just 5 cents when you use Pre-filled Item Information (see details here).

If you haven't already, make sure you've reviewed all of the information pages we've provided to learn more about the other changes she introduced: "recent sales" as a factor in Best Match search results for Fixed Price listings (which may take a few days to roll out across the entire site), new maximum shipping and handling charges in Books, Movies & DVDs, Music, and Video Games, our paperless payments policy, our seller standards, and more.

In addition, check out the Seller Checklist, which will help you stay on top of when various policies and features will take effect, and provide updates on the availability of tools for bulk-editing your listings. A few key upcoming dates:

    * Starting October 1st and through the end of the year, sellers will get a free Subtitle listing upgrade, and eligible PowerSellers will get double their Final Value Fee discounts for items sold with free shipping.
    * By October 5th, make sure your first domestic shipping option in your Books, Movies & DVDs, Music and Video Games listings is within the new maximum charges.
    * On October 20th, our paperless payments policy will begin, and checks and money orders will no longer be allowed as payment methods.
    * Also by late October, you'll need to specify your handling time and return policy in your listings.

As we did on August 20th, we'll be answering your questions about these changes on our special discussion forum on September 16th from 8 a.m. to 5 p.m. PT.

more info: http://www2.ebay.com/aw/core/200809151520182.html

[sneakymagenta]

Kellie.....are you having trouble making sales without Paypal? Just wondering because I visited your shop and noticed you only accept Money Orders. I too, only accept money orders and personal checks on the other sites I sell on. Sales are slow.

http://www.powersellersunite.com/post-20...tml#203297

[amy]

[quote author=sneakymagenta link=topic=18320.msg72514#msg72514 date=1221836378]

Kellie.....are you having trouble making sales without Paypal? Just wondering because I visited your shop and noticed you only accept Money Orders. I too, only accept money orders and personal checks on the other sites I sell on. Sales are slow.

http://www.powersellersunite.com/post-20...tml#203297

[/quote]

She should be thanking eBay for finally forcing her to accept electronic payments.   ;D  She would see an immediate pickup in sales on every site she sells on if she accepted them.  Very few buyers are willing to go through the hassle of getting a money order and mailing a payment.

[mandy]

Also by late October, you'll need to specify your handling time and return policy in your listings.

The implementation of this policy has been delayed until 2009.

*A Message from Nate Etter: Update on Mandatory Return Policy and Handling Time***

October 07, 2008

Hi everyone...Good news for sellers who are in the process of updating their listings to prepare for the holiday season. We had previously announced that specifying both your Return Policy and Handling Time would be made mandatory in late October. However, given the breadth of changes we’re asking sellers to make to their listings this year, we’re giving sellers a reprieve on these two items until after the holiday season.

The new enforcement date for mandatory Return Policy and Handling Time will be in early 2009. To give sellers adequate time to get their listings ready, we’ll be giving sellers at least 30 days notice before we start enforcement. ..

full announcement: http://www2.ebay.com/aw/core/200810071337332.html

The previously announced ban on email addresses in listings has also been reversed.

There's been some confusion about whether or not seller email addresses must be removed from listings before the holiday season. Let me be clear. Sellers do NOT need to remove  email addresses from their listings.

We were looking at making it mandatory to remove seller email addresses as a way of keeping buyers safe from  fraud. But we think we may have found a better way. As mentioned in "Anonymization of Email Addresses in Member to Member Communication," we're  making all email addresses anonymous on the site and in the API, except between transaction partners. And as part of that, we were able to throw in some extra functionality too. We made it possible to send and receive messages using your existing email client.

If this is enough to keep everyone safe, we may never need sellers to remove their email addresses from their listings. We'll take another look at this in Q1 2009, and see how well it's working...

full announcement: http://developer.ebay.com/community/blog....Developer&name=http://ebaydeveloper.typepad.com/dev/2008/10/email-addresses.html

If recent eBay flip flop history is any guide, these policy change announcements may become null and void as early as next week.  tolensmiley:

[mandy]

Updated seller standards – minimum DSRs
Finally, we're instituting a new minimum Detailed Seller Rating (DSR) requirement, as a way to further improve the customer experience for everyone on eBay. As of November 1, 2008, sellers will need at least a 4.3 across all four DSR categories, over the prior 30 day or 12 month period depending on volume, in order to list on the site

That was then, this is now.  :

At some point between August 20 and October 21, eBay lowered the minimum standards sellers would be required to maintain in order to keep listing on the site...

...this week, Dinesh Lathi, eBay Vice President of Seller Experience, told users they would be restricted from listing on the site if any of their DSRs fell below 4.1, effective November 3rd. He also said that sellers with a DSR between 4.1 and 4.3 would be allowed to list, but that their listings might be "subject to further demotion" in search results.

full article: http://www.auctionbytes.com/cab/abn/y08/m10/i23/s01