Over the last week, I figured I would try to clean some clutter out and put some stuff up for auction on eBay.  What I have found is that they are charging WAY too much now.  Lets look at one of my auctions:

2 items with a “buy it now” auction and “best offer” listed at $29.99.  They both sold for a total of $44 ($22 each).  Here is the fee breakdown:

Insertion Fee: $2.40
Final Value Fee: $2.31
Total fee: $4.71

That is MORE than 10% of what I received for my items.  To put the sting even further, there sister company Paypal took an additional $1.88.  Total fees for selling on eBay amounts to $6.59 on a sale that was $44.  My final income was $37.41, they took 15%.  It looks like the only way to make money on eBay is to inflate somewhere and now I know why some of these shipping charges are outrageous.  eBay does not charge fees on shipping, PayPal does as it is charged on all incoming money.  So if you are going to sell something of any value, list it for a dollar and put your purchase price in shipping.

My insertion fee was so high on that item because it was a buy it now.  Guess what eBay, it does not cost you more to list that item so why are you charging more?

Another quickie example which is not as bad.  A cell phone up for auction with a buy it now.

Insertion Fee: $1.10
Final Value Fee: $3.25
PayPal Fee: $2.98
Total Fees: $7.33

Phone sold for $84.75 - $7.33 = $77.42 in total income.  That is still close to 9% (8.64%) in total fees.  I am looking for a new auction site that does not try to rape you on fees.  Maybe Amazon is the answer?  Maybe uBid?

Pass on eBay.  There fees are out of hand.

- SJ

Technorati Tags: auction, ebay, for sale, selling, stay away

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