eBay Drops Media Fees, Keeps Feedback Changes

The price for inserting media like books, movies, music, and video games on eBay drops in response to angry seller feedback.

Lower insertion fees for the first three tiers of media categories give sellers a little relief, as they made enough complaints to prompt eBay to move quickly on that issue. But eBay will not back off its feedback changes.

Sellers can kick and scream all they want about the new feedback system, but that isn't going to change. The best discounts for sellers from the Bits Blog, buyers have long complained about huge shipping fees. Ebay's Lorrie Norrington, President of eBay Global Marketplace Operations, said in a Final Value Fees, which are a percentage of the closing price.

Shipping fees are not part of the Final Value equation, and sellers quickly realized they could offer an item at a lower price and make up some profits on shipping. If you ever wondered how a $6 shipping fee for a book manifested itself as a $1.38 stamp on an envelope, in an example I've seen, now you know where the other $4.62 ended up: in the seller's pocket and out of eBay's reach.

eBay will turn buyers into a de facto shipping police force through the DSR program. If sellers price shipping as a profit center, buyers who deal with those sellers may choose to knock the shipping cost portion of the DSR down in response.

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