Monday, March 29

Are eBay Stores Really Worth the Money?

So my boyfriend who is my sidekick in setting up my online store has been super busy with his own online projects for the past few months. Needless to say, I am still store-less and still considering my options. I decided to go and check out the eBay Store situation. I used to have an eBay store back in 2007 and it didn't seem to bring the traffic or sales I was looking for. They claim they have improved the exposure given to those selling in an eBay store. I almost fainted when I calculated how much it would cost for me to open a store up. I have been looking at the free shopping cart software programs before now because I don't need a host. My boyfriend has plenty of space on his server for my little site.

So here is the cost of an eBay Store:

Subscription fees
Store level
Fee
Basic
$15.95 / month
Premium
$49.95 / month 
Anchor
$299.95 / month
This is to just have the store. Here is what you get for each one:

http://pages.ebay.com/storefronts/Subscriptions.html

But then...

Insertion fees
Price
30-day duration
Good 'Til Cancelled*
$1.00 - $24.99**
$0.03
$0.03 / 30 days
$25.00 - $199.99
$0.05
$0.05 / 30 days
$200.00 and above
$0.10
$0.10 / 30 days
You pay for each item every month. Yes it may not be much but what if you have a thousand items! Oh but that is not all. When you sell your product you then pay:

Final value fees
Price
Final value fee
Item not sold
No fee
$1.00 - $25.00
12.00% of the closing price
$25.01 - $100.00
12.00% of the initial $25.00 ($3.00), plus 8.00% of the remaining closing value balance
$100.01 - $1,000.00
12.00% of the initial $25.00 ($3.00), plus 8.00% of the initial $25.01 – $100.00 ($6.00), plus 4.00% of the remaining closing value balance $100.01 – $1,000.00
Over $1,000.01
12.00% of the initial $25.00 ($3.00), plus 8.00% of the initial $25.01 – $100.00 ($6.00), plus 4.00% of the initial $100.01 – $1,000.00 ($36.00), plus 2.00% of the remaining closing value balance ($1,000.01-closing value)
In conclusion, I feel that an eBay Store is kinda a rip-off unless you have an already established customer base and guaranteed sales or have a few items you sell and they have a large profit margin.

If you don't you would be better off paying for a shopping cart software like 3-D Cart and getting automatic exposure all over the internet for your products.

Tuesday, March 2

EBAYS LOWEST INSERTION FEES EVER COMING THIS SPRING


eBay announced in January it was going to reduce its fees. Now with March 30th quickly approaching those promises will soon be making it more affordable to sell on eBay. Starting March 30 the upfront cost of selling on eBay will be dramatically reduced for sellers of all sizes with eBays lowest Insertion Fees ever. Whether you’re running a business or selling to earn extra cash, choose from a range of options designed to make your selling easier and more profitable. So all of you procrastinators, me included, get your stuff ready to sell.

eBay may have finally figured out that sellers will just go find another venue if they keep raising prices. There is a ceiling to the profits you can make per seller. For eBay to make more money, they need to bring in more buyers and sellers, not make it more expensive to sell. Good job eBay, keep up the rational thinking.