eBay sticks it to the little guy... again! (eBay Final Value Fees - Now Including Postage!)

Just when you thought eBay couldn't get any worse we find that greed knows no bounds in the latest eBay assault on sellers. Now thanks to the unsatisfied greed of eBay sellers must also pay fees on the postage price of their listings. This will push many sellers to close up shop. eBay likes to say "make it free postage", problem is free postage means the seller must pay all the fees to eBay meaning the postage costs of the item is also being taxed to eBay. Not fair? You bet it's not fair!!

Official eBay email Announcement of the changes…

In an increasingly dynamic ecommerce environment, we're committed to driving your success on eBay. As a leading Australian shopping destination, eBay must continue to adapt for the benefit of all users, sellers and buyers.

There are a number of important updates and changes coming in the Autumn Seller Release, a quick overview of each are set out below.

From 6 May 2014 selling fees (final value fees) will be charged on the total cost of a sale, i.e. the sale price + postage cost.

With more than 60% of items sold on eBay.com.au already offering free postage, the new way of calculating final value fees means all sellers pay a fee based on the total sale price, whether postage is included in the cost of an item or charged additionally. Customers love free postage and we know it can help increase the likelihood of a sale. If you can't make it free, make sure it's reasonable.

If you currently offer free postage on most of your items, this change will have little or no impact on you".

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Comments

      • Sorry. I meant when eBay tries to encourage sellers to offer free postage, is it for buy it now listings only or normal auctions as well?

        • Sellers will still be able to charge separate postage, however ebay will now include that in the final value fee. Previously the postage part was exempt from the FVF. Even before this came in, if you sold something for 99c and the postage was $10 you would lose money.

          It will stop people charging 99c, then $60 for postage in order to skip out on fees.

          The sellers that do the right thing (like me), will also pay more though.

    • It is for all listings.

      Listing something at auction for 99c these days is a huge risk (unless item is in high demand).

      • People used to list at 99c to reduce their listing fees but now with the first 40 ads being free with all the add ons like extra pictures, scheduling etc a 99c auction is not really needed unless its only worth 99c…..or you want to induce some excitement amongst bidders.

  • +2

    This is the motivation I needed to get our new website up and running so I can put some proper investment into Adwords. I've been putting it off for a while now…

    Ebay does my head in… constantly changing policies and sales processes. They make so much money why do they need that little bit more? WTF are they planning to do with all their cash?

    • +4

      It's a corporate Goliath with an insatiable appetite.

      • +1

        Ebay: feed me i'm very hungry …
        People: But you already eats ~10% of us …
        Ebay: No no no, you don't understand, i have to eat more to sustains my giant body.
        Question: Should we still use the 6000years old currency ? While everything in our society on this planet is changing rapidly.

    • WTF are they planning to do with all their cash?

      Based on their previous acquisitions, I'd say their plan is to buy up all the competitors. And if they can't buy up Amazon, they will just merge and the world will be ruled by the Amabay monopoly.

  • +3

    I sell on eBay and once this change comes into effect I will simply increase the item cost or the postage cost. either way eBay wins and the buyers lose.

  • +6

    eBay can get (foul language). Not selling no more stuff on there after this session. They're money hungry and hope someone else comes in and wipes them out.

  • +1

    I wonder if TradeMe would like to expand across the Tasman.
    Perhaps team up with the likes of quicksales or fishpond?

    • Need full global reach from the start to be a real threat to Arsebay.
      Only Google, Amazon etc could do it in a way that competes.

      • I was thinking more along the lines of a local competitor at this stage, not international.
        It was just a quick look, but I checked a couple of categories on both web sites.
        TradeMe has the category with many items in it and quicksales doesn't.
        They must be doing something right.

    • That's actually a really good idea…you should ask both of them to consider it.

  • +3

    eBay has been making things less and less pleasant for casual sellers with the constant increase in fees.

    For casual sellers, the postage cost is normally between $8 - $15 (unless you sell screen protectors or something which can be post as regular mail). Anyway, that translate to another $0.80 to $1.50 to FeeBay.

    I think most sellers will pass on the fees to the buyers.

    • I think all sellers will pass the fee straight on in their prices, I would/will.

  • You could always sell your items on Gumtree. It's an alternative but it carries far less traffic.
    People sell on ebay because of that.
    The seller always pay for postage you physically go into the post office and pay it.
    Most of our store items postage is just a 60c/$1.20 stamp so it's not going to be to bad for us.
    Yes ebay is making a little more money through this. Store holders are getting an upgrade in free listings per month. eg. Basic 80 go to 200 free listings..
    It's also an even playing field everyone will pass on the fees which will just make it a little less competitive. Ebay isn't always the cheapest either. I have a few times bought items retail(Sale) and sold them on.
    I agree ebay is getting a bit harsh for people who just want to sell a few items a Month/Year I suspect that's why etsy is picking up business.

    • +1

      That $1.20 will be $1.40 next week

      • Yepp.. All my Items that We sell are going up 10-20Cents. We'll probably absorb 1/2 of it with the extra 120 free listings ebay give up per month saving us 50c X 120 Free insertion fees = $60.

      • Oh man, are they seriously increasing the postage?

    • Ebay own Gumtree.

  • +3

    eBay really sucks. With fees pushing 12% including paypal it pretty much writes off people selling low markup items such as electronics / computer parts. They're basically pricing themselves out of certain markets. Someone needs to take them on already. Wouldn't mind google having a go.

    I think anything over 5% is a rip.

    • 12% is more than some religions!!!

  • EBay are scared to lose buyers. They know sellers are stuck with selling on eBay as eBay have no real competitors in Australia. But for buyers, they could easily dtch eBay and go to a localbshop or small online store and buy the item. That's why sellers are treated like shit. I stopped using eBay. Rarely go on it now.

    • +2

      I'm inclined to agree with you.

      Lately, I've used eBay to compare prices and get a feel for how much it should cost (or less), and then google for similar items and find that it's cheaper to buy from an online store (or shock horror, a B&M shop). Thus, my shopping patterns are changing again. I am happy to wait for a good deal than to buy from eBay that often. I've even bought from aliexpress once (took almost 4 weeks to arrive but I was in no rush), because eBay didn't have the best prices.

      • I generally find the same these days, sometimes even half the price off a "direct" website.

        Although I sell on there, I have to admit my prices are lower on my own websites.
        Most of mine are fairly low ticket prices and I need to cover ebay's (rising) costs.
        Selling off your own website is so much cheaper now. Back in 2006, my first website cost $1,000 to build and $25 a month to host (as well as domain name, etc.,).
        I'm having that site rebuilt at the moment (totally new setup) at a cost of $400 & $5 a month hosting.

        Why is ebay increasing costs when hosting, etc., is decreasing?
        Probably because they're losing business through their own greed, stuff ups & glitchy dinosaur site.

    • Do they forget that their sellers are also buyers?

      • +1

        Yes, they also forget that sellers are their customers.

  • Ebay are Double Dipping….. If you are posting items, there is a 99% chance that the buyer will pay you via Paypal (Also owned by Ebay). They already charge you a fee on the total transaction cost ie Item Plus postage.

    So now Ebay get two fees for the same sale.

    • insert xzibit meme on how ebay puts fees on your fees…

  • +11

    Free Postage Warning - Offering Free postage sounds good and I admit that I'm attracted to buying items that offer free postage… a great marketing ploy. The problem arises for the seller if the buyer wants to return the item or disputes an item.
    If free postage is NOT offered, you only have to refund the cost of the item, the buyer pays for the cost of shipping both ways.
    If you use the free postage option eg $20 Item which includes $10 postage, the seller would have to refund the full $20…..so you loose out again.

    • +1

      really good point ++1

    • Yes very true. Thanks for raising this.

    • didn't think of that cheers for the heads up boss!!

    • Charge the buyer a restocking fee equal to the postage.

      • pffft no one is falling for that.

  • +3

    The real problem for us here in Australia (and the US) is that our postage systems are now quite exy when you want to compete with the likes of China who must be operating under some mega-government subsidised postage system when you consider what they can send us for the prices they send us with free postage. Some things that they sell for a couple of bucks with free postage would cost us nearly $40 just to send to the next suburb here.

    So this benefits China…unless eBay calculates a simple scaled system that is uniformly applied across all items globally to determine a fee (unless pickup option selected).

    • They already Geo-block to a degree. Items you see in an overseas store are sometimes completely hidden depending on the domain you're using.

  • +1

    This is stupid. eBay should have a % cap of the item value vs postage costs rather that f@#$ everyone up. I

  • +7

    I used to love and defend eBay because of my repeated excellent experiences with them, but this is indefensible. They've turned me into a hater. I include a small handling fee in my flat rate postage prices to cover petrol and packaging – there is no reason for them to take a cut from this. Another fee adds up for someone who's sold over $10k in just three years.

    And to those who say to just use Gumtree – most of my customer base are in remote suburbs, so shipping is a must. Further, I have had nothing but negative experiences with Gumtree (scammers, lowballers, morons who don't read the listing, morons who waste half my day asking questions and then not buying, people who pull out of the sale even after I've travelled an hour to meet them half-way).

    So, essentially, what I'm saying is that we desperately need an alternative to eBay, as they are truly ripe for disruption now. They are abusing their market position.

  • i gave up selling on ebay after being force fed policies and fee.

  • +1

    simple, just don't use it.
    I don't anymore and I used to be a power seller.

    • What's the alternative? And don't say Gumtree.

      • Quicksales and fishpond. I use both and also Gumtree and do better on each of those than eBay in one year. I sell about 600 lots or items a year online in a variety of categories.

  • +1

    For merchants & sellers, there's always option of setting up your own website, use many other subscription-based ecommerce suits (BigCommerce, Shopify, etc) or fee-free sites such as QuickSales.com.au. The platform itself is easy, but I guess what eBay provides is the "marketing". So are you willing to pay 10% "commission" to eBay for the items you sold? Alternatively there are many small boutique shops trying to promote their stuffs on this website although the community there are cheapskates and will vigorously shooting down bad offers :)

    For off-loading unwanted items, garage sales, etc — yes there are Gumtree, QuickSales, etc. Also OzBargain Classified due to popular demand. Another site that we've been running ads for is Oddswop which is a Sydney-based startup targeting local/community sales. Not free though, but a lot cheaper than eBay.

  • +8

    How about Ozbargain set up their own eBay. We can call it OzBaygain. lol

    Gets pitchfork out

    • We have classifieds section.

      • must be a contributor though. not for everyday folk

  • +3

    WTF… yeah read it this morning in their email.. this is bullshit… now charging on postage as well… just another way of making more $$… as it is they charge around 10% of Sale price….

    there needs to be another better platform..

  • +1

    Don't do it - find another way to sell your goods. I do agree that Gumtree should not be an option.
    The more of us all who refuse to use E-Bays extortionate demands may result in them re-thinking their strategy.

  • +8

    Operation Boycott Ebay 2014

  • eBay account delete?

  • +3

    I've recently found quicksales.com.au
    No fees, OZ based and while obviously not the traffic feePay has… I've still sold and bought stuff for a good price.

  • +3

    wow, what a scam, i used to sell a lot on eBay back in the good old days (power seller as well), however through the years all they have done is made it harder and harder on the seller

    1) they introduced paypal and then FORCED sellers to provide it to buyers (previously was optional)

    2) they changed the rules so buyer protection only applies if paypal is used AND require sellers to use REGISTERED POST to prove an item has been sent. this made postage costs on small items exhorbitant if sellers wanted to protect themselves from dodgy buyers. (which i had one guy claim he never received a $100 item even though I had sent it and his feedback showed he always did this with paypal)

    This increased ebay fees by forcing sellers to use paypal which was additional revenue to them (percentage of final sale price + listing fee+ percentage of TOTAL including postage for the privilege of using paypal) and allowed them to effectively have no pay out to buyers in the event of a dispute because they simply reverse the paypal payment to the seller.

    3) they removed the ability for sellers to leave negative feedback on a buyer…?? even if said buyer never pays is extremely rude or dodgy?

    end of the day they made it extremely onerous and costly for sellers especially on cheaper items- after the above changes i have also chosen not to use ebay as a selling platform

    just another pathetic excuse for them to increase profit margins for themselves at the cost to sellers and ultimately buyers; very greedy ebay

  • -1

    Its a combined problem with the Australian Government and Ebay, if anyone actually sits back and looks at what is going on the picture is quite bad..

    China Post subsidised their deliveries from China which is why most things out of China are free post.
    Australia post only takes money from deliveries originating in Australia, because of reciprocal rights to deliver it needs to deliver the articles flowing in from China which has increased 1000 percent and they have had to employ more people. To cover this they have increased their prices dramatically to send internally in Australia.

    So if you run a business in Australia you are up against free post from China and Australia Post increasing their prices, there is another increase in April.

    Everyone who uses this site think they are very smart as they find these amazing deals from Kogan ect and saves themselves $50-$100 on a new camera ect.

    This is a loop hole as the stupid Australian Government doesn't charge GST or Import tax on items under $1000 in Australia.

    So generally you go into a shop, waste the persons time looking at a camera ect and then buy it overseas.

    What is actually happening is you are circumventing the GST, so this weekend when you break your arm and try to go to a hospital it might not be there or if you want to take your kids to a playground it might not exists or even the shop where you are wasting the people time will not exist.

    All because we think we are being smart by saving $50 but really we are not supporting Australian businesses and the money is pouring out of the country.

    Its a loophole that the government needs to plug to protect retail in Australia but have a think about the next time you save $50 what impact this has on Australia..

    Yes I know this is harsh and I expect negative comments but if it makes you stop and think about your buying choices then at least it was worth it.

    • Most OS items purchased online are more than 10% cheaper.
      Australians are and have been price gouged buy high taxed and big corporations eg.. Apple, Sony, Adobe.. Just look at prices in the US. and were closer to where it's made (mostly China)
      The government could charge 10% on items under $1000 but what concerns me is there are probably 100 of 1000's of items coming into Australia every week via customs. How much will it cost in labor to process and check these items.. Well that would create some jobs. Maybe it's a good idea even if it does just cover costs.

      • I lived in Brazil for a number of years that has 100% import tax, 60% of the products used internally in their country are a national product meaning produced in their own country, the taxes on the good support the wages policing it.

  • It seems like markets can really only have one large auction site. Nz has trademe and Japan has yahoo auctions. In neither case has eBay managed to gain a foothold, although potentially that's because both of those alternatives are cheaper. Who would pay to use eBay if you can use yahoo auctions for free?

    • I didn't know Yahoo were still running an auction site anywhere. We used to have it in UK until they gave up.

  • Can we use trademe.co.nz?

    • Yeah Aussies can buy and sell there. If you want to sell there though you must have an NZD bank account, which is an absolute pain in the arse to try and organize from AU. I ended up just going into a branch last time I was transiting AKL airport!

  • +9

    Ebay obviously think that no matter how much they increase their fees, that people will just take it up the pooper. Sure they'll have a whinge, but they'll eventually get used to it - so they think. They know they are being utter scabs but they obviously think they have us by the nuts. Not a good feeling as a customer, the squirrel grip.

    One day a solution will come, another equal player will challenge them and eBay can get solidly phucked. I will enjoy that day and enjoy them come crawling back to us the customers with all sorts of magical discount fee offers which will suddenly be available.

    A greedy monopoly just like the Trading Post or Telstra in the old days.

    Look at the Trading Post now, a valueless sad joke. Never looked like it would happen then BANG over in moments. Man, I hope that happens to eBay.

    Greedy scab bastards.

    • +1

      +1
      can't agree more, u nail it.

    • lol scabs. scaBay.

  • +2

    This shit should only apply if the postage exceeds item cost. That will prevent people jacking up postage to offset fees. Going to suck for people buying overseas. The postage is already bad.

    • +2

      That's a valid idea.

      But you got me thinking:

      If eBay want to make commission on postage they can come and pick up the post from my house.

      +1 For greedy.

  • +1

    From an ebay forum I am a member of:

    Ladies and Gentlemen please indicate when you have made an enquiry to the ACCC re the intention to charge FVF's on postage https://www.accc.gov.au/contact-us/contact-the-accc/general-…

  • +1

    A post on that forum……How many of you have contacted the ACCC? Send through an enquiry… flood them so they actually look at it, It would amaze me if the TPA allows a company to charge someone for an unrelated service.. but then ive been wrong before

  • +8

    Postage is NOT a service they have provided or facilitated so very very dodgy of them to charge a % for it.

  • OZB should open a selling site and charge 1% less fee than ebay, i will switch to using it instantly.

  • +5

    I hate ebay with a passion, they run a .com.au domain and connect Aussie sellers with Aussie buyers, they charge their fees on our gross prices (inc gst) so we pay them a commission on the 1/11th of the sale we don't even keep, now we have to pay a fee on postage.

    Plus eBay fees themselves are exempt from GST ie they dodge it (as they claim to operate out of European country) and pay our government nothing in taxes for pillaging our people.

    Seriously they are a curse…..what's worse they own their nearest competitor!

  • If im buying a big item - I just message the seller to and ask for a discount if we do a Paypal only sale. They are happy to split the 10% rort. And you get the same protection through paypal.

    • Ehhh the same buyer protection does not apply through paypal alone - "not as described" excuse - doesn't exist / wont pay out on. If a seller can prove they dispatched and you received, I think you'll have little chance of any sort of claim working.

      • +1

        yes, it does.
        u can call paypal to confirm 1800 073 263

        if u buy from sellers with good feedback, then u won't have any problems.

        • I'd suggest trying to make a claim and see what happens. I know as people try to charge back on us all the time after buying outside of eBay - not once has it been honoured by paypal as they have no way to verify the purchased items description in order to reference it as "not as described".

          https://www.paypal.com/au/cgi-bin/webscr?cmd=_pbp-info-outsi…

          Dispute resolution on PayPal purchases.

          When you pay with PayPal, you gain access to a forum for dispute resolution called the Resolution Centre. Through it, you can issue a dispute or claim against:

          A physical item that you paid for but never received.

          A physical item you purchased on eBay that is significantly different from what was described in the listing.

          Dispute Resolution specialists gather information about your transaction and help you resolve the issue. Throughout the process, you’ll be advised of your claim’s status via email and on your Account Overview page.

        • Obviously an eBay description is more substantial than a single line invoice. You just have to be specific so there is no misunderstanding if it escalates to a claim.

          The protection is the same though.

    • also its against "ebay policy" to deal outside of ebay.
      seller can get suspended.
      They have become so paranoid they won't even allow me to send an email address through their messaging system which is ridiculous because so many sellers dont have their paypal accounts set up correctly and I can't even send them confirmation of which email address their funds were paid into

  • Building your own site is hard work

    the problem is, their cost per sale is still lower than Adwords

    So unless you get a lot of organic traffic or return customer, eBay still a lower cost market place.

    but moving forward, our ads on eBay will have a $3 postage fee, this will cover the cost of adverts fees on feebay

    every market place are price driven, there was a perception you find the best deals on ebay,, but not anymore

    Overtime, customer will start shopping direct rather than through eBay.

    We are seeing this trend grow, we now sell less than 20% on eBay vs our store.

    PayPal keep calling us to use their service on our website, I simply tell them nicely to go screw someone else

  • +2

    some sellers have tried to find loophole to decrease their fees.

    I bought a bottle of perfume recently with reasonable postage fee.

    Everything is perfect, paid for it. items arrived in a few days.

    I was happy with the product. Then the seller emailed me asking me if I would mind cancelling the transaction so he can save on ebay fees.

    Since I was satisfied with his service, I said why not ? He refunded me the money and I transferred it back to his bank account outside ebay. Ha Ha Ha

    • +2

      Risky for the seller. You may not have re-paid after your refund.

  • +1

    Amazon are setting up as we speak to hit Australia, the only reason why Ebay has a hold in Australia is because we don't have Amazon here, as soon as they get their distribution centres here they will kill Ebay, unfortunately they will kill many other smaller businesses are they work on Razor Thin margins we can not survive on, their retail is our wholesale..

    • +1

      If Amazon set up I will likely switch to selling via the Marketplace for things like movies and games.

  • Thing is what can you do when gumtree is full of spammers and dodgy buyers.

    Say I want to sell my phone eBay is probably the best option cause of big audience and if you do it right you do get your money. But the fees are high.

    So what can you do really?

    • +1

      The answer is to keep using but at the same time voice objections if/when necessary to try and "keep them in line" otherwise they will do what they want.

      Remember, they had to back down over Paypal only so it can be done.

    • Bail on the bill?

  • I can't believe no-one has mentioned craigslist ? Isn't that huge in the US, works here but just not popular ?

    [edit] oops, just read feebay bought 25% in 2004

    • Gumtree is better for local listings(owned by ebay also) but no one comes close to FeeBay for actually selling stuff you have to ship.

  • Stuff this I'm moving to a different websit…… wait.. fudge darnit.

    • Let eBay die. Sellers are getting ripped off its no longer a place to do small sells of anything unless you got mass scale coverage with your own warehouses and logistics sorted from China.

  • eBay is not your friend, it is a business, so don't be surprised and upset, just say FU eBay and walk away, take your business elsewhere. I'm surprised people invest so much emotional energy and time into an online auction site. eBay is not a democracy, they can make whatever rules they like.

  • This is really annoying news, not only that but Australia post upped their prices this week too. I sell internationally, so im wondering are sellers required to put free post for all? or can you put a postage cost but it just takes a percentage out of that?

    If only there was a good alternative to ebay I think ebay would find lots of people jumping ship.

  • It does go on a bit, but anything is worth a go https://www.change.org/en-AU/petitions/ebay-com-au-review-ex…

  • On another note, eBay doesn't even display the fee breakdown of your sales - it's just automatically charged onto your Paypal or Bank account. You'll need to work that out manually. Dodgy…

  • I've just noticed the amount of listings on quicksales has gone up a lot in the past week and I've had a number of new buyers buy off me on there in the past 3 weeks.

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