eBayUK February 2023 Seller Update - Shop & FVF Fees Increasing
eBayUK has dropped their February 2023 Seller Update and the big news is - more fees!
Here's what you need to know!
We are making changes to the following:
- Shop subscription benefits and fees
- Final value fees in selected categories, mainly in Home & Garden and Electronics
- Fees for sellers whose performance level is Below Standard
- Additional free optional listing upgrades
- Expanded per-order fee credits in selected refund circumstances
Shop subscription benefits and fees
We’ll increase our monthly package fees from 1 April 2023 due to the recent investments and improvements we’ve made in Shopfronts. Specifically, we’ll increase our monthly package fees and remove the listing upgrade credit offered to Featured and Anchor shop package subscribers.
The new monthly price continues to represent great value for money as it is significantly lower than what you would pay without a shop package – with new features like video capability, the ability to send coded coupons to buyers, and enhancements to surfacing your feedback on Shopfronts. If you don’t have a package, you’ll continue to pay as you sell without a monthly fee.
Additionally, we’ll double the free monthly allowance of 7-day auction-style listings. For example, if you currently have a Basic shop package, you’ll be able to list up to 100 7-day auction style listings. Please see the table below for the increased allowances.
Kudos to eBay for including side by side comparisons this time! 😉
Shop subscription fees will be increasing effective April 1, 2023.
There will also be FVF increases across many categories effective March 2, 2023.
Final value fee changes in selected categories
Starting on 2 March 2023, we’ll update our final value fees in selected categories which have a range of final value rates.
For example, business sellers who sell in the Mobile and Smart phones category will see the threshold for the 6.9% variable percentage portion increase from £400 to £1,000. In addition, the portion of the total amount of the sale above the threshold will increase from 2% to 3%.
Interestingly, they didn't provide a comparison for the fee increase in sneakers.
Currently sneakers over £100 are assessed a 5% final value fee on only the selling price, excluding postage, fees, and taxes but that will be increasing to 7%.
However, from the wording, it's not entirely clear if that 7% will be on the total sale including taxes, fees, and postage (I'm betting it will be).
Fee update for sellers listing sneakers (Final value fee update beginning in March)
We’ll also change final value fees for Men’s and Women’s Trainers categories as we continue to invest in our platform.
Starting 2 March 2023, if you sell sneakers with an item price of £100 or more, a 7% final value fee will be charged when the item is sold, plus a fixed amount of 30p per order. Free insertions also apply for listings with a starting price of £100 or more.
Also interesting that they've chosen now to institute a fee increase - didn't they just through telling us that many Brits are being hit hard by the cost of living crisis and only have £5.26 of daily disposable income? 🤨
There will also be significant increase in the Below Standard penalty fee from 4% to 6%.
Starting 2 March 2023, we’ll increase additional final value fees from 4% to 6% for Below Standard sellers. In doing so, we're continuing our effort to mitigate behaviour that doesn’t support good buyer experiences and negatively impacts sellers on our platform.
The additional fee will continue to apply to the total amount of the sale, and does not apply to Above Standard and eBay Top Rated Sellers. You can check your current seller level on your Seller Dashboard.
The other big news in this update is a new delivery option for sellers to offer customized delivery for large and bulky items, like furniture.
What are seller managed services?
With seller managed services, you can now offer customised delivery for bulky items, such as large furniture. Your buyers will be able to select their desired delivery service directly on eBay, choosing from a range of options, including room of choice delivery, assembly, and more.
What seller managed services can I offer?
You can offer buyers up to 4 service types per rate table from the following list.
- Kerbside - This item will be delivered to the nearest kerbside of the address supplied at checkout.
- Doorstep - The item will be delivered to the front door of the address supplied at checkout.
- Room of choice - The item will be delivered to the buyer’s room of choice at the address supplied at checkout.
- Room of choice + unpacking - The item will be delivered to the buyer's room of choice and packaging taken away at point of delivery.
- Room of choice + old item removal - The item will be delivered to the buyer's room of choice. The item they're replacing will be collected and taken away.6
- Room of choice + unpackaging + old item removal - The item will be delivered to the buyer's room of choice. The packaging and the item they're replacing will be taken away.
- Room of choice + assembly - The item will be delivered to and assembled in the buyer’s room of choice at the address supplied at checkout.
- Room of choice + assembly + unpackaging - The item will be delivered to and assembled in the buyer’s room of choice. The packaging will be taken away at the point of delivery.
- Room of choice + assembly + old item removal -The item will be delivered to and assembled in the buyer’s room of choice. The item they’re replacing will be collected and taken away.
- Room of choice + assembly, unpackaging + old item removal - The item will be delivered to and assembled in the buyer’s room of choice. The packaging and item they’re replacing will be taken away.
Please note that all seller managed services are managed by the seller, including delivery, assembly, and removal. Ensure you use a reliable and reputable carrier and service provider to carry out your services.
I'll be digging in to the details about what these fee increases and new services mean for sellers and of course I expect the US update will be coming out today as well - stay tuned!