Starting in May, sellers of watches on eBay will have to pay more

Starting from May, sellers who sell watches on eBay will need to pay higher fees. Regardless of the final transaction price, an additional fee will be charged to cover the cost of eBay selling high-priced luxury watches. Some watch sellers call it a "luxury tax."

Here’s what’s changing: Sellers who participate in managed payments without an eBay store will pay a 12.35% fee, plus 30 cents, for watches sold for $1,000 or less. That jumps to 15% for items over $1,000.

Sellers with eBay stores who also participate in Managed Payments currently face paying 11.5% plus a 30-cent fee for watches sold for $1,000 or less. That rises to 12.5% ​​for items sold for more than $1,000.

Many sellers on eBay's seller discussion board have discussed this, with some calling the 15% final value fee "profiteering."

eBay said in an April 12 announcement that the fee increase in the watches category was intended to enable it to spend more on marketing and product innovation: "Our broad-based, multi-channel marketing has helped increase new luxury watch buyer traffic on eBay. As we continue to focus on the luxury watch experience, we are increasing the final value fee in the Watches (260325) category. This will allow us to invest more in luxury watch marketing, social media, SEO and product innovation as we continue to become the leading platform for luxury watches. "

Social media and SEO marketing don’t actually require such large-scale spending, but eBay said: “Our marketing campaigns were targeted to watch enthusiasts, and these marketing activities resulted in an unprecedented number of new and pre-owned watch buyers. We also launched dedicated social tools to engage watch enthusiasts with a community management team that focuses on this daily activity.”

Additionally, eBay has released new escrow requirements:

“ As part of our ongoing work to create the best watch experience possible, beginning the week of April 20, 2021, you will have access to optional payments via escrow through our partner, Escrow.com, for luxury watches priced over $10,000.

We are asked by both buyers and sellers of luxury goods to use an escrow payment method to facilitate high-value transactions on eBay via wire transfer. If you are listing a watch priced at $10,000 or more, we recommend that you register with Escrow.com. Additionally, eBay pays any processing fees for the escrow service, so buyers do not pay any additional fees. ”

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