SNEAKER INFLATION NOW UP 8%

[namtrag1]

Final Value Fee now being charged 8% starting in January.  It's been ZERO for the longest of time.

NOT HAPPY

Can I be so Brave as to ask WHY??

[namtrag1]

Dear .......
As eBay continues to invest in our platform, we are making changes to final value fees for Men’s and Women’s sneakers listed in the Athletic Shoes category. 

Effective January 19, 2022, the final value fee for sneakers over $100 will be 8% (7% for Basic and above Stores subscribers). Insertion fees will continue to be waived for listings with a starting price over $100. See detailed FAQ’s here.

eBay is and will remain the most competitive destination for sneaker resale. We have the lowest fees  among competing marketplaces and offer the latest resources to help accelerate, grow and scale your business: no-fee verified returns, seller protections and Authenticity Guarantee. To date, eBay has authenticated about 2 million sneakers globally, with a pair of sneakers purchased every four seconds.

[coffeebean832]

I'm sure eBay purchasing the authentication service is a big part of the reason- if not the entire reason.

The part I find surprising is that 0% fees lasted as long as they did. I expected eBay to beef up the sneaker biz until eBay was one of the #1 spots buyers came to for sneakers- then add a fee back on.

To do that they had to draw in the sellers. Now eBay is one of the #1 spots for sneakers, so even with fees- sellers will still come because this is where the buyers are.

https://community.ebay.com/t5/Announcements/Important-information-for-sellers-listing-sneakers/ba-p/... 

My opinion- it's about time the rest of us stopped carrying the full expense for the sneaker sellers.

[femmefan1946]

All eBay's actions, including fee and listing promotions, are for the benefit of eBay.

The sneaker promotion was designed to encourage seller to use eBay as their market.

It is safe to assume that this was a loss leader. EBay did not expect to make money on this, they wanted to establish the market.

It succeeded.

Now the FVF has risen from 0% to 8% , still well below the fee for most goods (12.55%) and well below the 14% I pay on my book sales.

EBay is not your friend, eBay is your landlord.

[slippinjimmy]

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@namtrag1 wrote:

Final Value Fee now being charged 8% starting in January.  It's been ZERO for the longest of time.

NOT HAPPY

Can I be so Brave as to ask WHY??

---

Because while eBay can be charitable they are NOT a charity. Did you really think that sneaker sales would be free forever?

[glasser]

Frankly, I am happy they are doing this. why should sneaker sellers get a free ride when most of us are pay 12.5% on sale price, tax, and shipping. 8% is still a discount to the larger eBay marketplace. 

This free FVF was eBay's way to try and take market share from others. Goat and StockX beat eBay to the sneaker market eBay needed to play catch up.

[wildpitchsports]

Not really sad. Not sure why people reselling sneakers they are probably sourcing on the dirt cheap or otherwise for massive profits should get a break. The rest of us do not.

And if you sell (including shipping paid by buyer and applicable sales tax) over $600 in an online venue in the USA  for 2022 calendar year you will get hit with a 1099-K to file with your taxes.

Maybe we can finally get a quality pair of shoes for under $300.

[namtrag1]

Gee Whiz...What was I thinking?

I never thought about it that way.

Now that I see your point of view I am now more than happy to pay a higher fee....it's only right.

[kensgiftshop]

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@glasser wrote:

Frankly, I am happy they are doing this. why should sneaker sellers get a free ride when most of us are pay 12.5% on sale price, tax, and shipping. 8% is still a discount to the larger eBay marketplace. 

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I agree, they should be paying fee's just like the rest of us.

Just because they sell over priced shoes, shouldn't make them any different then the others.

[coffeebean832]

They put a variation on it for handbags authentication. Two months ago when authentication came in to play- those high priced handbags saw a fee decrease, while lower priced bags saw a fee increase.

[bbravo65]

...time to play a fair game...(oh...and the "fair share" slogan)...no, life is always unfair...

[dolcetreasures]

There are no margins on sneakers. eBay understands that most of the sneakers are being purchased at retail. The upcharges sellers throw on popular sneakers might surprise you. There’s little money to be made unless you have volume. The new fees will destroy many businesses that thought the gravy train would keep on rolling. 

[dolcetreasures]

No they are not “sourcing them dirt cheap”. 

[buyselljack2016]

Gotta love the diagram in the notice.

eBay hand outstretched, palm up, awaiting the $ to fall into the hand.

[luckythewinner]

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@namtrag1 wrote:

Final Value Fee now being charged 8% starting in January.  It's been ZERO for the longest of time.

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For the same reason that thousands of other businesses have offered a service for free initially and then imposed fees later on. 

They want to increase their market penetration, attract sellers, and allow their users to get established and invest in their venue in hopes that they will be less inclined to leave when the fees arrive. 

In other words - it was a marketing ploy.