eBay

studiomaster_uk · ‎24-01-2025

An auction is effectively a 'price discovery mechanism' whereby buyers compete (bid) to reveal the maximum price they are willing to pay.

In general auction sales it is not unusual for there to be a 'buyer premium' (a selling house fee) added to the winning parties bid. It is added afterwards and shown separately.

Ebay are proposing that they will be adding a 'buyer premium' to auction bids and transactions but that it will be, to all intents, hidden within the visible bidding, i.e. 'inclusive'. (Hence there is no reason for the buyer to consider it exists or take it into account within their bidding activity.)

Given that buyers will have in mind the maximum that they are willing to pay for whatever is being auctioned it must follow that the effective typical average net value (the amount the seller would receive) will be reduced by an amount equal to the 'buyer premium' being charged by Ebay. That is to say, in order to maintain the equilibrium of 'price discovery', the effect of the 'buyer protection fees' has to be the same as it would be if a 'seller fee' were imposed (as used to be the case) . This makes a nonsense of "Free to Sell".

For anyone having difficulty to grasp this:

1) From 4th Feb. 2025, (buyer protection fees will apply) :

A 'widget' is listed as an ebay auction. On average people will pay £5 for a widget. So bidding rises to £5 where it stops, because people are not willing, on average, to pay more than £5 for a widget. The buyer pays £5. The seller receives £4.05 (or thereabouts).

2) Currently (24th Jan. 2025), (no buyer protection fees) :

As 1) above, but the seller receives £5.00

3) Before "Free to Sell", (seller fees applied) :

As 1) above, but the seller received £4.05 (or thereabouts).

barry.110 · ‎24-01-2025

I agree with you, an item will find it's natural price with an auction and if that is £10 that is what it will be whether there is a buyer fee or not. So even though technically it will still be free to sell and no sellers fees it will be the seller that takes the hit not the buyer or EBay.

*vyolla* · ‎24-01-2025

For sure, the Buyer Protection fee of 75p + 4% will impact the sale of low value items via both auction and fixed price Buy it Now listing formats.

Factoring in that eBay is a site that features low value collectables such as postcards, trading cards, stamps etc., it would've been prudent to put a ceiling on it i.e. items sold for less than £5 are not subject to the fee.

tommystrezures · ‎24-01-2025

Its the 75p that is the crippling part in all of this, if you are selling an item at £5 in affect the buyer is paying a buyers premium of 19%. I agree with Vy that mechanism should be less for small end items, or that the 75p element is waived.

plpmr · ‎24-01-2025

indeed another site brought in a buyers fee last year and now they are offering a big discount on that fee for Jan.

tommystrezures · ‎24-01-2025

Delcampe by any chance @plpmr ?

plpmr · ‎24-01-2025

indeed it is.

studiomaster_uk · ‎24-01-2025

@barry.110 wrote:
I agree with you, an item will find it's natural price with an auction and if that is £10 that is what it will be whether there is a buyer fee or not.

The same will likely be the case with a Buy Now offering - there is a natural typical market price that people accept as fair and reasonable which they surely have in mind and, whilst a seller can set any price they choose, sales conversion will depend entirely upon what a buyer is prepared to pay.

studiomaster_uk · ‎24-01-2025

@plpmr wrote:
indeed another site brought in a buyers fee last year and now they are offering a big discount on that fee for Jan.

Which raises another thought. AFAIAA, Ebay have always argued that they are mearly a facilitator and the transaction (the contract) is directly between buyer and seller. If they are 'adjusting' the price (the consideration) and providing a chargeable service tied to the transaction (the Buyer Protection) it seems to me by that intervention they might become a party to the contract. Anyone read the latest T&Cs (user agreements) in this respect?

johnwash1 · ‎24-01-2025

"Free to sell", even before October, when final value fees were charged, has always meant only "free to list". Which I think these days is fair enough, given how debased the word 'free' has become amongst the corporate marketing 'droids. The site isn't a charity.

The 75p does irk though. Clearly ebay have decided that they don't want low value items "cluttering the site". How wrong they are, this is what creates a fair amount of the attraction the place has historically had.

But changing ebay's mindset, that's about as likely as rerouting a container ship on its way through the Suez Canal. Eventually ebay will become the Ever Given of the selling sites and others will take its market share.

jdaw-2564 · ‎24-01-2025

The good news for you is that the BPF is only going to affect private account, not business sellers with hundreds of brand new pants 🥲

papso22 · ‎24-01-2025

@studiomaster_uk wrote:

@plpmr wrote:

indeed another site brought in a buyers fee last year and now they are offering a big discount on that fee for Jan.

Which raises another thought. AFAIAA, Ebay have always argued that they are mearly a facilitator and the transaction (the contract) is directly between buyer and seller. If they are 'adjusting' the price (the consideration) and providing a chargeable service tied to the transaction (the Buyer Protection) it seems to me by that intervention they might become a party to the contract. Anyone read the latest T&Cs (user agreements) in this respect?

They are not adding to the consideration paid to the seller, they are adding a fee for a totally separate supply of a service to the buyer. That service is provided under a separate contract to the one ebay has with the seller, or the seller has with the buyer.

Linking the calculation of the fee to the item value does not link the supplies.

studiomaster_uk · ‎26-01-2025

@papso22
They are not adding to the consideration paid to the seller, they are adding a fee for a totally separate supply of a service to the buyer. That service is provided under a separate contract to the one ebay has with the seller, or the seller has with the buyer.

Linking the calculation of the fee to the item value does not link the supplies.

From another perspective they are adding to the consideration paid by the buyer by including an 'invisible' surcharge (the fees) which will be integral to the transaction. Seems to me that there is no "separate contract"; it is not discretionary.

What "totally separate service" is it that you feel they are ~~offering~~ mandating to supply?