Happy! eBay reduces commissions for some categories

On January 27, the eBay community issued an announcement stating that eBay will reduce final value fees for sellers who manage payments in some categories to help sellers retain more funds or reinvest in their business on eBay, and stated that the new lower fees will apply to items sold starting January 27, 2021, regardless of when the product is listed.

The categories mentioned in the announcement are all “big names,” including: Heavy Equipment, Parts & Accessories > Heavy Equipment; Printing & Graphic Arts > Commercial Printing Presses; Food Service > Food Trucks, Trailers & Carts.

eBay store sellers need to pay a fee of 2.5% of total sales, up to $15,000 per item, plus $0.30 cents per order, and 0.5% for sales over $15,000. Non-eBay store sellers and merchants settled in eBay need to pay 3% of total sales, up to $15,000 per item, plus $0.30 cents per order, and 0.5% for sales over $15,000.

Before the adjustment, eBay store sellers had to pay a fee of 3.85% of the total transaction amount, and 2.35% for the portion exceeding $15,000. Non-eBay store sellers and merchants on eBay had to pay 4.35% of the total sales amount, and 2.35% for the portion exceeding $15,000.

At first glance, the fee reduction does not seem to be large, but when you look at these product categories, it makes a big difference: whether it is heavy equipment, commercial printing machines, or trailers and carts, they are all products with higher average order values. Although the price reduction does not seem to be so "shocking", it is still a considerable fee considering the sales volume and price. This time eBay has spent a lot of money.

As early as in an announcement in May 2020, eBay stated that it would build the eBay platform into the best platform for purchasing industrial equipment. With the epidemic and the development of e-commerce in 2020, a large number of e-commerce newcomers have emerged both at home and abroad, which may have made eBay feel a sense of crisis. Judging from the categories shown in the current announcement, they are indeed eBay's advantageous categories. It is not wrong to regard eBay's action as an expansion of its competitive advantage.

In addition, as the weather warms up and vaccination work is underway, countries around the world will slowly resume work after a while. Now is a good time for eBay to enter the market. Early layout, consolidation and expansion of competitive advantages can also be a strategy for eBay to gain a foothold in the rising e-commerce army.

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