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I just saw this announcement.
Does anyone know what the fee changes are going to be? Occasionally I put certain items in 2 categories.Fee Changes for Listings in Multiple Categories Delayed
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04-17-2018 01:03:46 PM
We announced in the Spring Seller Update that beginning this May, when sellers list an item in two or more categories and there is a difference in final value fees between the categories, the highest final value fee would apply when the item sells.We are now announcing that this change will go into effect July 1.
We want sellers to be as prepared as possible, so coming mid-June, we will release a new feature which allows them to easily adjust categories for existing listings.
Sellers should wait until this feature is released before removing categories from listings. We will notify sellers when it is available.
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When we list, we list in certain categories. Each category has a different final value percentage fee rate.
ebay is going to make sure they get their money by making sure that the percentage fee rate that is the highest (based on category) is the one they will get paid on and not just the first one identified in the listing.
Scroll down on this link to see the category fees chart
https://www.ebay.com/help/selling/fees-credits-invoices/selling-fees?id=4364
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Jay, it has always been possible to put an item in two categories. For example, almost any sports related clothing item could go in both the general clothing category and the sports memorabilia category. Since a buyer might confine his search to one of the two categories, if you aren’t in both, you are likely to be missing out on some buyers.You could choose a “primary category” and a “secondary category” (and you still can). I have used this over the years, rather sparingly though, since you pay a second listing fee for the second category). Once this change goes into effect, ebay will no longer choose the primary category for its FVF, they will choose the most expensive one (assuming there’s a difference in the FVF amount).
I don’t think this is aimed so much at ebay making the extra money on the FVF, as much as it is aimed at technically retaining the option for two categories, while trying to take away some of the incentive to use it…because ebay, with all its product catalog emphasis, really would prefer if everyone used only one category. And, in fact, ebay would prefer if you use the category their catalog uses.
I don’t really mind the possibility of paying the higher FVF, since I have so few items in two categories, but I’ll probably stop using two categories going forward because experience has taught me that it is usually easier to go with the flow on ebay….
But just to be clear: this has nothing to do with a change to any specific category’s FVF. THis does not change the FVF for any categories, it simply changes the way ebay chooses between two categories if a seller has used two. Since you don’t ever use two categories, the announcement is irrelevant for you.
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As sellers, I think we are going to see more changes in the structure and/or cost of fees (FVFs, insertion/listing fees, extra listing feature fees etc.) due to the fact that they are one of the primary revenue sources for ebay.
According to ebay’s 2017 United States Securites and Exchange Commission report under the section titled Net Revenues:
“We generate two types of net revenues: net transaction revenues and marketing services and other (“MS&O”) revenues. Net transaction revenues are derived principally from final value fees (which are fees payable on transactions closed on our Marketplace and StubHub platforms), listing fees and other service fees. MS&O revenues consists of Marketplace, StubHub and Classifieds revenue principally from the sale of advertisements, vehicles classifieds listing on Marketplace platforms, revenue sharing arrangements, classifieds fees, marketing service fees and lead referral fees. Revenues are attributed to U.S. and international geographies primarily based upon the country in which the seller, platform that displays advertising, other service provider or customer, as the case may be, is located. To drive traffic to our platforms, we provide incentives to our users in the form of coupons and buyer and seller rewards. These incentives are generally treated as reductions in revenue”
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