rate increases eBay undisputed Go

August 22 Today is the day of the increases in new listings eBay store. I'm betting that last night, you saw an increase in heavy traffic list for a month on the list at the old rate. eBay store owners can stay up late to get all the new ads place before the new rate increases, or increasing the cost of their goods, in an attempt to absorb the increases in interest rates. Will any store closed? We will see a decrease in the lists of stores? Will we see prices headed up? Will buyers have smaller selections? The next 45 days will tell.

Auction format is the fuel that drives the machine eBay. Auction format is what started with eBay. Auctions and selection are what drives eBay buyers. Shoppers skip the auction in hopes of getting goods at a ridiculously low price. Store owners often assume that a loss of an auction as a strategy to promote its ad business. Based on the pulse of buyers use the Buy It Now button. This can no longer be a profitable strategy.

Devina Mehra, an analyst lead at first Global Securities, wrote a note to clients in which he expressed support for raising the rates. "We believe that eBay is moving in the right direction towards restoring its growth trajectory," he said, as reported in an article in the Seattle Times.

"Under the new pricing structure, a $ 50 item sold through the store will generate $ 4.46 in fees to eBay, compared to $ 3.27 before the change," wrote Ben Charny, the author of this article. "Under the old rules, store items cost 27 percent less than the list of auction items .... From Tuesday, however, the difference will be only 3 per cent."

eBay hopes to encourage high-volume sellers to return to the auction format, or at least collect the profits no matter what the item is listed or sold.

This move has caused a group to ask for a boycott of eBay, and another group has reportedly written to Google in hopes of getting their site up for auction. There in lies the problem for sellers, no viable place to migrate to.

The timing of this move was perfect. The busiest time of year is just beginning. Back to School, Halloween, Thanksgiving, and more profitable Christmas season is just beginning. Traders have to sell in this time of year, in order to make a profit. From September to December is the make or break the quarter for most traders. If you do not make huge profits in this quarter, then they can not have the finances to carry through the rest of the year.

The question is, will still be able to generate a profit? A loss of 27% of the profits is a great success. Let's say I am a merchant that deals with women's clothing. I want to sell a $ 50.00 dress on eBay. Should I buy that dress for $ 25.00. This is a typical mark of 100%. In order to offer a selection, I for the purchase of any size. Colour the Small, Medium, Large and Extra-Large, and each, Blue Red and Green. Seven dresses so that a buyer can find the dress in their size and color. This is $ 175.00 invested in the hope of doubling my money. Now I pay taxes store, the cost of storing photos, the listing fees, promotional expenses, a fee if I want a photo gallery, and when to sell, I am impressed with the final value fees and PayPal fees. Let's say I sell 4 of the 7 dresses in a month. This is $ 200.00. Wow, I get $ 25.00 .. No, keep the taxes alone were $ 15.00 for a store elementary. And after all the other taxes, it is very likely to be out some money.

At this point, as a merchant I have three choices. Out of business, raise my prices, or find a place to sell with a lower overhead. Points of sale, at lower cost does not have traffic (yet). So I raise my prices. If I increase my prices, then why buy my product online? It can be found for the same price in a retail store, and not have to pay for shipping. So, my sales are likely to come down anyway.

He forgot all the advantages of selling and buying online? Wide selection of better than retail prices. Selling with low overhead means better profits, and reduced prices for the buyer.

One blogger wrote: "I think you have it upside down when you state:

The success of their initiatives will be measured by the actions of their sellers.

The actions of the buyers is what is driving eBay. As long as buyers appear, vendors will follow. "

eBay has got to where it now attracts top sellers. Buyers have to select large, and the impression of low prices. When they begin to discover that you can get cheaper elsewhere, vendors will follow the buyers, and eBay will begin scrambling to solicit sellers back.

The next 45 days will tell. If we succeed in MSN, Yahoo, Google, Amazon, or some other big player in the game, then format the shopping auction will continue to dominate e-commerce, and losses of eBay is a monopoly. Otherwise, how to shop on-line switch to other specialized websites, and shopping with a starting price no longer dominates e-commerce .......