eBay to charge commissions on shipping

Changes to eBay's fee structures have been announced.
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01.eBay sellers to pay more

In a change just announced and coming into effect for all auctions starting after 6 May this year, eBay will now charge its commission on the total cost of a listed item, including shipping.

Under the old pricing structure, sellers paid eBay's standard 9.9% commission on the final sale price of an item – so if you were selling a pair of shoes for $100, and charging $10 on top of that for shipping, you’d be paying eBay 9.9% of $100, or $9.90. Now, the commission will be charged for the total cost of the sale, so the commission would be 9.9% of $110, or $10.89.

But it’s not all bad news – to offset the increase commission costs, eBay has announced a shipping rebate of 10% for certain 500g parcels sent via Australia Post.

How does the shipping rebate work?

The shipping rebate is being offered for express and standard 500g parcels for which labels have been created through eBay’s label printing service. Once a month, eBay will credit the seller invoice with the amount owed.

Why is eBay making this change?

Officially, eBay says: “These changes are a part of an ongoing effort to reduce the basic upfront cost of selling on eBay for everyone and encouraging the selling practices that we know keep buyers happy and coming back time and time again.”

So essentially, eBay seems to be pushing sellers to list items at an all-inclusive price.

What does this mean for buyers?

While in theory this is good news for buyers – for Buy It Now auctions they’re able to immediately see exactly how much money they’ll need to fork out for their purchases in total, that isn’t possible for auctions, unless the starting price is set high enough to cover shipping costs.



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