Ina Steiner EcommerceBytes Blog
News and insight focusing on ecommerce.
by Ina Steiner, Editor of EcommerceBytes.com
Sun Mar 24 2024 16:40:55

Would Buyer Fees on eBay Be Good for Sellers?

By: Ina Steiner

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We noticed some eBay sellers discussing Etsy's decision to add a buyer's fee for customers on its Depop fashion marketplace (only for Depop buyers in the UK), and we wondered what sellers would think if *eBay* ever considered adding buyer fees in the US or elsewhere.

Beginning April 15, 2024, Depop buyers in the UK will pay the item sale price; shipping costs; VAT or any other applicable taxes and duties; and what it called "the Marketplace fee," which is "up to 5% of the item purchase price, plus a fixed amount of up to £/$1, excluding taxes and shipping costs."

In response to hearing the news about Depop's new UK Buyer Fee, an eBay seller wondered, "Will eBay follow Depop's lead? This is clearly a category eBay wants to "win" (as they always say about sneakers and the other focus categories). I'm sure eBay will be watching Depop's results carefully."

One seller said they feared such a move would harm sellers, having seen buyer's premiums at auctions reduce the price realized for items. "Buyers make decisions based on the total they have to pay, including shipping."

Auction goers are accustomed to paying a buyer's premium, and when eBay launched the eBay Vault in the collectibles category, it introduced fees that buyers would have to pay - and not just submission, storage, and withdrawal fees - but a Buyers Premium fee of 3%. ("The vault buyer's premium covers the administrative costs of securely reassigning ownership of the item within the eBay vault.")

We're curious what sellers think of the concept of an eBay Buyer's Premium. Would it make sense in any category? Would you feel differently if it meant eBay would decrease selling fees?

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This user has validated their user name. by: toolguy

Wed Mar 27 09:31:52 2024

The Mercari forums are buzzing this morning over zero seller fees!

As a Mercari buyer I'm not happy about this news!

But now I might become a Mercari seller with zero fees. . . .

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by: Whatever This user has validated their user name.

Thu Mar 28 13:43:36 2024

oh wise genie in the lamp - is the resurgence of commercial and retail space about to start? Will Americans go back to shopping and supporting each other going to have a come back?

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by: railady This user has validated their user name.

Thu Mar 28 21:30:33 2024

I think a Buyer Premium is going to hurt sellers.  I know for a fact that when I'm trying to win on one of the private online auction venues, where BPs run as high as 25% even 28% now, it SURE makes a difference how much I am able to bid .

Some of these online auctions have even added a "cheat sheet" that appears when you click to place a bid - telling you how much your TOTAL would be, showing how much the BP will add to your final cost if you bid a particular dollar amount.  

GUESS WHAT - the AUCTIONEER (it would be eBay in this case) gets to keep the buyer premium.  

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