eBay Winter Update Final Value Fee Increase - Deep Dive
eBay's Winter Update included a fee increase across most categories that went into effect on March 1st, 2022. The main page of the update said the increase would be 0.3% for most sellers with stores and 0.35% for most sellers without stores.
Final value fee increase in most categories
Starting on March 1, 2022, final value fees for Store sellers will increase 0.3% in most categories...
...Final value fees for sellers without a Store will increase 0.35% in most categories.
In a refreshing change, eBay provided a side by side comparison chart for sellers with no store or Starter Store subscriptions and sellers with store subscriptions of Basic and above.
Sellers asked for such a comparison after the Spring 2021 update but eBay said it was too complex for them to present in a "digestible way" - so I had to help them out. 😉
The key word here of course is "most" and looking at the comparisons in-depth reveals some interesting things.
The biggest losers with the highest fee increase are Trading Card sellers (0.55% for non-store, 0.50% for store). If you're wondering who pays for eBay's newest authentication program, there's your answer - ouch!
Liz Morton
Other key players in CEO Jamie Iannone's "vertical strategy playbook" fared better - handbags & watches saw no fee increase and sneakers over $100 saw no further increase above the 8% that was announced back in December.
The newest golden goose vertical, Motors Parts & Accessories, did see an increase for most sub-categories but oddly was the only one to have any sub-category with a decrease - Tires dropped from 10.7% to 9.5% (-1.2%) for basic store subscriptions & above only.
My take - bulky items like tires are seeing dimensional weight calculations skyrocket with recent shipping rate increases - and because eBay takes their FVF out of shipping as well as item price and sales tax, that adds up fast.
Larger anchor or enterprise level tire sellers in particular may be feeling the pinch and it appears eBay may have decided to throw them a bone here.
For this reporting, we've gone with eBay's calculation of difference in percentage points, though as Richard Meldner from eSeller365 points out, that's not the same as a percentage change.
In one example, eBay said the fee is increasing from 11.7% to 12% for Store sellers, “a difference of 0.3%.” However, that is really a 2.56% increase.
And in another example for sellers without an eBay Store, it said the fee is going up from 12.55% to 12.9%, “a difference of 0.35%.” Here again, that is really a 2.79% increase.
There is a difference between a percentage change and a percentage point change, yet eBay doesn’t make that differentiation in its wording but explains it in the examples. One would think that a math concept taught in elementary school would be described correctly by a global multi-national company.
Full breakdown of fee comparisons below.
Non-Store & Starter Store
Most categories (if your category isn't listed anywhere else on this chart, it goes here) - increase from 12.55% to 12.9% (0.35%)
Trading Cards - increase from 12.35% to 12.9% (0.55%)
Athletic Shoes - under $100: increase from 12.55% to 12.9% (0.35%), over $100: no change, still at 8% as announced in December.
Bullion - increase from 12.35% t0 12.9% (0.55%)
Books & Magazines, Movies & TV, Music (except Vinyl Records) - increase from 14.55% to 14.6% (0.05%)
Guitars & Basses - increase from 5.85% to 6% (0.15%)
Handbags, Jewelry & Watches, NFTS, and Select Business & Industrial - no change in fees.
Basic Store & Above
With store subscriptions, eBay breaks the fees down much more by category and many of them do follow the 0.3% increase described in the update.
Notable exceptions:
Books & Magazines, Movies & TV, Music (except Vinyl Records) - increase from 14.55% to 14.6% (0.05%)
Trading Cards (Sport & Non-Sport) & Collectible Card Games- increase 11.5% to 12% (0.5%)
Select Computer/Networking sub-categories (full list below) - increase 6.55% to 6.8% (0.25%)
Tires - decrease 10.7% to 9.5% (-1.2%)
Guitars & Basses - increase from 5.85% to 6% (0.15%)
Video Game Consoles - increase 6.55% to 6.8% (0.25%)
Handbags, Bullion, Jewelry & Watches, NFTs, Select Business & Industrial - no change in fees.
Handbags saw a huge increase less than a year ago. If they jacked those fees again, sellers would have rioted.