eBay’s New Pricing Scheme

Given eBay’s relatively poor performance this year and the departure of its CEO as a result, it is not surprising that eBay is on for a change. eBay has recently notified its user the coming change in pricing. The changes has one simple goal–to attract more posting by lowering the upfront cost. For existing sellers however this comes at a heavy price, for the final value fee–the commission you would have to pay after you successfully sold your item–has been significantly raised. It’s not a bargain for most sellers: eBay lowered the upfront cost by $0.05-$0.8, in exchange for a 3.5% increase in the final value fee for the first $25 of the sold price, and roughly 0.5% increase for whatever comes after that. 3.5% of $25 would already be $0.875, but you only get a $0.8 if you are posting an auction with a starting price of $500 or above. For anything below $25 the reduction is $0.05, which means an starting price of merely $1.43 would leave you worse off under the new price scheme.

So let’s just say, eBay is in hot pursue of profit this season.

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