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.

2 comments:

build a niche store said...

i am agree with the you dude
eBay is an amazing way of making money not only quickly but also easily, just you need a good way of marketing the niche
thanks for the post:)

Cindi said...

Yes having the niche is the key to success on eBay. If not you are just not going to see the profit you want. Its just finding that unique item that sells. How does your affiliate store builder work? Would love to write a post on it.