eBay UK announced this morning that they will be reducing listing and final value fees in selected categories, effective March 1st. For more details, click here.
This is a very interesting move from eBay and one which we think the seller base in general will welcome. There are four parts to today’s announcement.
1) A reduction in FVFs for technology product categories (including computing, consumer electronics and photography)
2) A reduction in listing fees in the media category (books, CDs, DVDs, etc) but an increase in FVFs in the same categories
3) An increase in listing and FVFs for eBay Motors
4) A change in the Reserve Price fee policy - such fees will no longer be refunded if the item sells.
So, what does this all mean? Well, it seems that eBay is listening to its sellers’ concerns and taking positive steps to address them. Technology products often have high ASPs and low margins and sellers are finding it increasingly hard to make the returns they need to do business through the eBay channel. Therefore the reduction in final value fees in these categories will make a big difference.
As for the media category, this is a very aggressive move. Our media seller clients have told us that, since the changes in store inventory visibility in search results last year, they have had to take a lot of their slower selling inventory off eBay as they simply can’t afford the listing fees. However, by reducing listing fees to 10p in the media categories (or as low as 5p if the starting price is less than 99p), media sellers will be able to put more of their product inventory on eBay and buyers will therefore have more choice. This is a win-win for all concerned.
I’m sure there will be a lot of analysis and comment on these changes over the coming days and months and we’ll keep you abreast of seller reaction as we hear it. But for now, eBay UK sellers have a reason to smile…!
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