There is no doubt that ebay has proven to be a source of income for many for decades. However I feel the end of eBay is now upon us. Starting spring 2018 eBay is implementing some serious changes, all of which will hurt sellers. To add insult to what eBay is doing the SCOTUS is considering a case to allow all states to collect sales tax from eBay sales. If that passes in June, which I believe it will, all eBay sellers will have to register as business in the local communities. Which in turn means that eBay sellers will e required to pay income tax.
So what is eBay changing?
1) Starting March of 2018 they have increased the percentage of all fees. This will cost sellers.
2) Starting January the USPS increased rates on all mail over 1lb or over 1st class. Many items sold on eBay are over 16oz and require to be sent Priority, in the past a 1lb item cost me about $6, now the starting rate is $8-$9. This increase must be passed to the buyer. When the sales tax issue passes that will likewise have to be passed to buyer.
3) Starting mid-summer eBay will start to force sellers to agree to a new TOS to continue selling on eBay. Many sellers will simply click agree without reading the terms and in turn it could cost them.
eBay will start the phase out of PayPal and the conversation to their own payment system. All those wishing to sell on eBay must in time use this new system. In the terms is a legal term that will in time hurt sellers. “FULL BANKING INTEGRATION”.
If you look up the full meaning of the term, eBay requires sellers to allow them full and total access and control of their bank account. This is due to several factors. Ebay intends to force all sellers to offer 30 day money refunds. So the money from a sell can be frozen for 30 days. Also by allowing full access eBay can count your funds as an asset, this will increase their worth on paper and encourage share holders during a time of change and instability. Once the change over to the new payment system in completed all buyers will pay via debit/credit cards. So if a buyer opens a case against a seller and the buyer loses all the have to do is a charge back up to 90 days and they get to keep the item.
When these changes are completed a small to midsized seller will not be able to make enough money on eBay to justify selling. Between the increased fees, shipping cost, payment changes and taxes the cost of a “used” item could be more than new. In one statement eBay said they are wanting to copy Amazon’s model. The thing that eBay does not realize, there are Amazon buyers/sellers and then there are eBay buyers/sellers. Sellerrs on eBay sell on eBay because of eBay’s model and buyers buy on eBay because of their model.
I have chosen to close my store on May 25th because I can’t afford to sell on eBay any longer after that time because I would have to agree to the new terms in June.
So what is eBay changing?
1) Starting March of 2018 they have increased the percentage of all fees. This will cost sellers.
2) Starting January the USPS increased rates on all mail over 1lb or over 1st class. Many items sold on eBay are over 16oz and require to be sent Priority, in the past a 1lb item cost me about $6, now the starting rate is $8-$9. This increase must be passed to the buyer. When the sales tax issue passes that will likewise have to be passed to buyer.
3) Starting mid-summer eBay will start to force sellers to agree to a new TOS to continue selling on eBay. Many sellers will simply click agree without reading the terms and in turn it could cost them.
eBay will start the phase out of PayPal and the conversation to their own payment system. All those wishing to sell on eBay must in time use this new system. In the terms is a legal term that will in time hurt sellers. “FULL BANKING INTEGRATION”.
If you look up the full meaning of the term, eBay requires sellers to allow them full and total access and control of their bank account. This is due to several factors. Ebay intends to force all sellers to offer 30 day money refunds. So the money from a sell can be frozen for 30 days. Also by allowing full access eBay can count your funds as an asset, this will increase their worth on paper and encourage share holders during a time of change and instability. Once the change over to the new payment system in completed all buyers will pay via debit/credit cards. So if a buyer opens a case against a seller and the buyer loses all the have to do is a charge back up to 90 days and they get to keep the item.
When these changes are completed a small to midsized seller will not be able to make enough money on eBay to justify selling. Between the increased fees, shipping cost, payment changes and taxes the cost of a “used” item could be more than new. In one statement eBay said they are wanting to copy Amazon’s model. The thing that eBay does not realize, there are Amazon buyers/sellers and then there are eBay buyers/sellers. Sellerrs on eBay sell on eBay because of eBay’s model and buyers buy on eBay because of their model.
I have chosen to close my store on May 25th because I can’t afford to sell on eBay any longer after that time because I would have to agree to the new terms in June.
RSS Feed