01-10-2024 10:09 AM
So it's official from today private sellers no longer have to pay a final value or regulatory operating fee on items except for cars, motorcycles, and other vehicles on the platform
What benefits are we sellers to get other than being shafted with 10% fees and other expenses
Our sales could take a plunge with private sellers offering items at a super cheat rate
I'm rather worried thoughts ?
01-10-2024 10:27 AM
I agree it's something to worry about - the market is likely to get flooded with people listing for the sake of it (including even more business sellers masquerading as Private sellers), which could mean our listings get buried. I'm also not convinced about this 'Helping private sellers helps your business' claim - this may mean that more people join the site but I can't see this outweighing the increase in items for sale.
If they're trying to compete with Vinted etc then it feels like a race to the bottom, Vinted seems packed full of £1 items and I can see the same happening here - clogging up the listings.
And this 'More steps to address false private sellers' section in the email doesn't seem to be any steps at all, wouldn't a simple 'False Private Seller' choice on the 'report a seller' option be more helpful?
And who is going to pay for the lost FVF revenue from Private Sellers?...us of course.
01-10-2024 10:33 AM
@potfp23 wrote:
I agree it's something to worry about - the market is likely to get flooded with people listing for the sake of it (including even more business sellers masquerading as Private sellers), which could mean our listings get buried. I'm also not convinced about this 'Helping private sellers helps your business' claim - this may mean that more people join the site but I can't see this outweighing the increase in items for sale.
LIke many, they wont be convinced, its an empty unsubstantiated claim. If ebay had gone to the trouble of putting some meat on the bone and evidence to support that statement, I may have paid a bit more notice to it.
01-10-2024 10:33 AM
10% fees? I wish they were that low! I struggle to keep my selling costs on ebay below 23%, and I have recently upgraded my shop and reinstated a lot of listings so unless sales pick up I guess my fees will be over 30% very soon. I am an idiot though as I keep giving sales on ebay another chance to improve and over the past 12 months they haven't. So, yet again I will see how this new change will play out for business sellers such as myself.
01-10-2024 10:44 AM
i do not think so you did get 1000 free listing + fees if sold and it is if it sold.and some 80% off offers in the month.
now its just 300 free with no fees if you sell , with a 35p fee on anything listed after the 300 so low price items with not be worth listing + you would not waste you 300 on lower price items unless its the end of the month and need to use up ,,cloths are free anyway ? with is no go to me anyway
01-10-2024 11:15 AM - edited 01-10-2024 11:15 AM
In a long line of bad decisions, this is the worst decision eBay have ever made IMO. A real slap in the face for business sellers.
01-10-2024 11:37 AM
When I read new improvements for business sellers my eyes lit up and my heartbeat picked up
... for 5 seconds! Enhanced protection for when buyers make returns under false reasons? The fact Ebay have a self-service returns system, people will always lie. I dread to think what those buyers will resort to next - such as an increase in deliberately damaging things to falsely claim item broken or missing parts etc - all to avoid paying for returns - and how are Ebay going to determine this? I had a situation where Ebay told me to accept a fraudulent return and they would refund the label cost. I begrudgingly accepted, but they never honoured this promise, even when I rang back and complained twice. Disgraceful, when all conversations are recorded and notes should be made. It was not the cost, it was the principle.
Regarding zero fees for private sellers. Yea, it is totally infuriating on top of the already infuriating position!! Why are there STILL countless business sellers masquerading as private ones? Hasn't the message got through to them yet? I think many are finding ways they think they can get round this, like opening and closing accounts or having multiple accounts? EITHER they think can evade detection as 'it won't happen to them' OR they will claim they are selling granny's collection of new with labels BDSM gear - OR they are prepared to pay the taxes if charged but whilst they can, reckon it is cheaper to remain as private (which now it flaming well is) OR they are just waiting to be forced by Ebay to move over?
The good news is this:
It means that PRIVATE SELLERS ARE GOING TO REACH THOSE SELLING FIGURES THRESHOLD FASTER, SO THEY WILL BE REPORTED TO HMRC SOONER than they are now considering the whole of what they sell will make up those figures, and not only after Ebay's seller fees are deducted. So it is also a move to push more private sellers on to a business category. Another thought; in order to sell more and stay under the threshold before being reported to HMRC - it means some private sellers will have to reduce their prices - and frustrated by the imposed limitations - may then drive them to upgrade to businesses.
So Ebay state that after trialling the above in Germany, it resulted in better sales for the business sellers, as 80% of the time they were buying from business sellers. So... what percentage was it prior to the zero fees for private sellers??
That remains to be seen. What worked in Germany may not work in the UK and there might be other factors involved anyway, that resulted in the increase in sales for business sellers.
Let's see how the new Seller Clinic works!! Ebay don't even have enough humans to deal with reported listings/sellers - they are resorting to AI which is not intelligent enough to deal with the intricacies of complaints which are not always simple and straightforward!! Remember the days when business sellers were assigned a business support manager they could contact any time, plus pre-book chat sessions? Well it was helpful, but that didn't last long, did it!! Once again, I bet it is just another temporary appeasement.
In the end, let's hope it all works out OK for the serious business sellers. We have to constantly adapt and reinvent ourselves; exercise our problem-solving skills and battle on in the face of adversity!!
01-10-2024 12:24 PM
I hoped the HMRC bit would rid the site of illegal traders but it simply won't.
Unsurprisingly there are a lot threads running on this topic today. One concierge member asked exactly what eBay will do to stop the illegal traders on private accounts and the answer was basically nothing, unless they sell over €10,000 in any rolling 12 month period.
So, eBay is STILL encouraging illegal trading.
Then you have a few posters openly saying they run their business on a private account to avoid the fees. They declare their earnings and pay their tax so HMRC don't care.
Yes technically they are still trading illegally but no government or legal body in the UK is going to clamp down on them.
01-10-2024 12:26 PM - edited 01-10-2024 12:32 PM
Clearly an admission that all is not well with the platform - But I suppose they're doing something.
01-10-2024 12:46 PM - edited 01-10-2024 12:47 PM
The one small glimmer of hope I've found is this, which for some reason is buried.
https://www.ebay.co.uk/help/selling/ebay-balance/ebay-balance?id=5305
One of the big factors in declining sales IMO was when eBay ditched PayPal and private sellers no longer had a PayPal balance for purchases, meaning they were more likely to buy off-eBay.
Now there will be a balance from sales that you can spend on purchases.
01-10-2024 1:17 PM
Yes, this is one of the points I made in my reply. It makes sense for especially the smaller businesses to shut shop and go private! They will still be liable to pay taxes, but without all the fees imposed by Ebay. However, I am sure this loophole will be closed. Ebay are in the process of writing to private sellers exceeding the thresholds to tell them they must convert to business or risk having their listings hidden or accounts shut down (yeah, as if!!)
I hope that Ebay are just being very slow and inefficient reaching out to all these private sellers - and not guilty of simply paying lip service by only contacting a random selection thus making it appear they are being proactive and to appease the angry business sellers.
01-10-2024 1:32 PM
Nobody seems to have mentioned this yet but I've just read this report from Sky News on MSN: Selling fees on eBay scrapped (msn.com) . Most of it is the same as reports on other outlets but to save you having to plough through it all the 3rd paragraph reads:
However, buyers are set to face a charge. How it will be applied is yet to be determined though it will take effect early next year, the company said.
So... eBay remove fees for private sellers (and businesses operating on Private accounts), sellers rejoice and sales increase for a few months (probably because Christmas is coming up as much as anything else), then early next year eBay will introduce a buyer's fee. That's going to go down well then...
Any guesses what's going to happen to sales after that?
It really is all smoke and mirrors on eBay isn't it?
01-10-2024 3:03 PM
I would really like to see ebay actually doing something to favour its business sellers. We started out as a private account and upgraded (long, long ago), now have a shop and premises, which is great. However we do note that ebay consistently seems to be skewing against business sellers.
A good start would be more dedicated CS people looking at businesses. Stronger seller protections. Much stronger action on businesses operating with private accounts. More consistency across different ebay platforms (Germany seems to be utterly out there on its own)
01-10-2024 3:13 PM
I love getting an e-mail saying they are to clamp down on fraudulent returns like it's a reward and not something they should have been doing anyway.
I don't know, i've only just started out and have a choice of going full in on this along with my main source of income however I can't really justify putting all my spare time into something where direct competition get discounts and can undercut you with the savings, and their hope is that the new wallet will increase spend on eBay, it might do but they're going to buy from other private sellers (real and fake) who can afford to offer lower priced items
01-10-2024 3:28 PM
Twenty years ago a Wall Street financial expert surmised that in the long run eBay would be vulnerable to "death by a thousand cuts" as more platforms emerged to chip away at eBay's online auction monopoly. At the time, it seemed far fetched. I think it was when Amazon just sold books. This is why eBay has been constantly changing to counteract these dynamic market changes. I think this "free to sell" gambit could be a very good idea if it habituates a new generation to using eBay. If it hadn't worked on eBay Germany, eBay would quickly have binned it.
01-10-2024 3:38 PM
Everyone can earn about £10,000 before payng taxes. A late friend of mine who was an international VAT expert told me that, in the City, businesses denounce rivals they know are evading taxes, bankrupt them by the tax demands that follow, and buy their assets cheaply. I was shocked but it is absolutely standard practice in big business. The key though is having correct information. Jealous rivals speculating about the tax affairs of others are just a nuisance to the authorities.
01-10-2024 3:39 PM
Well. from now on I'm only going to buy from Business Sellers, if there are only Private Sellers selling the stuff I need, I'll buy on a different platform
01-10-2024 3:56 PM
Is there a selling threshold for private sellers? If there is I'm wondering how that works alongside EBay's own guidelines of what makes a seller a business.
01-10-2024 6:39 PM
If a business seller is masquerading as a private seller, and not declaring the income to HMRC, then they are guilty of money laundering. Ebay are also guilty of money laundering for allowing this to happen on their platform while performing no due dilligence on sellers. The number of people doing it is massive, which would be reflected in ebays fine if it ever got that far.
01-10-2024 6:50 PM
@iluvneighbours wrote:Is there a selling threshold for private sellers? If there is I'm wondering how that works alongside EBay's own guidelines of what makes a seller a business.
On another thread this morning, a concierge member called up eBay to complain about businesses masquerading as private sellers on the platform and asked exactly what they would be doing about it.
He was informed that unless they were selling more than €10,000 in any rolling 12 month period, no action would be taken...!
So basically eBay are encouraging or at the very least ignoring a very high number of such illegally trading accounts, and this has been the case and bugbear of legit business sellers for years.
Obviously now they have an ever greater advantage, the situation has worsened.