Online marketplace wars heat up over eBay, Amazon seller fees
By Jay Keller
The world’s largest online marketplace announced this week “everyday rate plans” in an effort to eliminate or reduce the basic, upfront charges that all sellers pay to list products for sale in the virtual marketplace.
“I’m thrilled to announce that we’re making a series of changes that focus on the things we know matter most to you—simplifying fees, providing more seller protections and making listing easier across multiple devices,” eBay North America SVP Christopher Payne said in a statement.
In an aggressive overhaul of its online marketplace starting in April, Payne wants sellers and retailers to know that it costs less on eBay than Amazon to sell video games, musical instruments, clothing, collectibles and cars at the end of the day.
Consumer feedback at eBay has echoed confusion over past policies, asking time and time again for the ability to see at a glance what it costs to sell on eBay.
So, eBay went after Amazon by publishing a competitive cost-comparison for sellers showing final price of Amazon’s referral fee percentage and eBay’s upgraded final value fees for subscribers.
By May 1, eBay says that all sellers will still not have to pay to list up to 50 products in both fixed-price or auction-style formats while paying a flat 10-percent final-value fee.
The company has also upgraded eBay Stores subscriptions at three levels for high-volume retailers who list more than 50 items per month or year pay a flat rate on the number of listings capped at a specific amount.
Basic Store subscriptions offer 150 “free” listings for as low as $15.95 per month while Premium Store subscribers would pay at least $49.95 for 500 “free” listings under a year contract. The prices go up to $20 and $60 each month without a year-long contract.
At the highest level, Anchor Store subscribers pay between $180-200 for 2,500 listings each month depending on the contract.
On eBay, there are two main types of fees for selling (insertion and final value) and how these fees are charged depends on the category of the item, the selling format and the duration of a listing.
The upgrade, according to eBay, eliminates the confusion by removing listing costs and charging 10 percent on the final value.
When your item sells on Amazon, and in lieu of a subscription fee, the company charges 8-20 percent of the amount paid by the buyer, including the item price and any shipping, gift wrap or other charges.