Thursday, January 04, 2007

eBay To Raise Prices AGAIN!

January 30th, eBay will put into place an increase in Auction Insertion fees and final sales fees. They recently raised prices 6 months ago, in July. This time the increase will affect everyone. I think the fees increase could help drive people to try out alternatives. The fee hikes could be the opening that a rival or competitor could see at a chance to compete. Craiglist has already begun to nip at eBays heels. The post for free model is not exactly a winning business venture, yet. I believe that a new startup must specialize in Auctions to even come close to being competition. Auction sites that offer everything to all won't stand out.

Insertion Fee
Starting Price: $1.00 - $9.99
Now $0.40
Was $0.35

Final Value Fee
Selling Price: $25.01 - $1000.00
Now: 3.25%
Was: 3%

Motorcycles & Powersports Transaction Fee
Now: $40
Was: $30

Cars & Trucks, Other Vehicles & Trailers Transaction Services Fee
Now: $50
Was: $40

Motors Reserve Fee
Now: 0.1% of reserve price, ($5 minimum, $10 maximum)
Was: $5

Will this affect my sales on eBay? We will have to wait and see.