My reply to eBay about their listing price increases

As of January 4th, eBay has increased their listing prices for sellers. I received an email from them regarding this, and have reposted my reply below for your enjoyment:

Good morning eBay,

I can understand the increased Insertion Fee, but why in the world would you increase the Final Value Fee? The Insertion Fee, since it is a flat rate fee, must obviously keep up with inflation. The Final Value Fee however, since it is a percentage of the final sale price, automatically keeps up with inflation since the final sale price of items will continue to increase.

I am a business owner too (not an eBay business), and I understand that as a business owner you have the luxury to increase prices as the market allows. But isn’t the beauty of a percentage based fee (or a commission, if you will) that it automatically follows market trends? I don’t see real estate agents sending out emails at the beginning of the year saying “Hey everyone, I’m increasing my commission from 6% to 6.25%.” That’s because the standard real estate commission of 6% (yeah yeah, I know it’s usually less these days and it’s negotiable and whatever, but that’s the traditional listing commission historically) keep up with the market. Again, the beauty of a percentage based fee structure.

Maybe I’m missing the point, or maybe it’s too early on Monday morning and I’m a little short on coffee. I completely support your right to do whatever it is you must do to keep the business profitable, but your Final Value Fee increase sounds like your ego’s getting a little big for my tastes. But what am I going to do? I’m essentially stuck at Disneyland buying four dollar Cokes. It’s not like there’s another viable online auction site that I can switch to unfortunately.

Anyway, that’s my thoughts on your price increase for what it’s worth. Take it, or more likely leave it, and have a nice and profitable new year.

Sincerely,
Liam Ferris
eBay buyer and seller since 1999