Ebay charges are too high.

[thekhadishop]

I am new to ebay. I decided to list a few things to see if I can make some money. However when I looked at the charges that ebay takes from each sale I have doubts if I should do any business here.

I can understand that it has to charge some amount to keep its business going but I think they charge much too much.

As a seller we also have to bear the charge for any transactions through paisa pay or paypal.

If something above Rs10,000 sells we bear a charge of 2.5% of the sale value + 3.5% for credit card and some 2% for Debit card.

If Ebay is going to take all the profit then what are we going to earn?

The customer does not get the product all that cheap. When we list our product we have to first think of the ebay charges and then list the product. The cost price for the customer goes up as the seller has to increase his cost to cover ebay expenses.

Ebay should bring their rates down so that the public gets a chance to make some money.

[techniwas]

Sir

I agree that you will end up selling the product at a rate higher than what you will sell the product in the offline market.

But,

1) What might seem expensive for your in Mumbai might be cheap for someone in Jaipur. The market is spread across 3000kms.

2) A very common example i give to ppl is, In mumbai you have Shoppers Stop aswell as Other cheaper markets. Same product at both places have a price difference of atleast 10%. However there are people who buy at expensive rates at Shoppers Stop? Why?

Reliability / Reputation /Buyer Loyalty / Preference / Perception / Faith / Accessibility and knowledge makes the difference here.

Another justification of the eBay charges is

The advertising and branding they do. Search for Nokia 6600 on google and you will see that you get links from ebay india to buy online. Similarly you find that eBay is the largest spender on online ads , thus attracting maximum buyers for its sellers.

Advertising online is not a cheap affair. Try opening a advertisers account with google and you will find that they charge you a fee of Rs 5 to 50 for per click of a person on your ad. Last year eBay spent US$ 25 Million on google advertising.


Besides,

Google offers Buyer Protection to its buyers, A very efficient and up to date website, Integrated Payment Gateway at lowest surcharge ... etc ....

I feel the market is still growing and the boom will come in the next 2 years.

Best OF Luck.

Regards

[runalaila_in1]

Twisted Thinking

A Product Of 100 rupees For An Offline Trader Will Be Marked As Sale At 140
Assuming 10 percent as rental expense , electricity , staff etc. and assuming a 18 percent profit margin
7 percent as advertising
a buyer would be paying 210 if worked out with a micro view
a buyer wastes 1 hour of his time to go to the shop ( 1 hour = 25 rupee )
spends petrol money( 25 rupees )
parking charges (15 rupees )
refreshment ( 5 rupees )
==================

now an onlne trader assuming he works from home will mark the same item at 200

7 percent as various fees and administrative expense
18 percent as margin
and 60 rupees as courier charges
the buyer spends hardly 10 rupees and can go through the deal within 4 minutes if he is a seasoned shoper
he spends 10 rupees only on the entire transaction
=========================


Now Assuming Above To Be Close To Fair ....
Both Offline As Well As Online trader are earning same yet the consumer gets a 10 rupee benefit
So Keep Selling Online Guys ....
With The Explosion In Salaries , Real Estate Boom And Stock Market Boom
The 1 hour time expense of a consumer will keep on rising dramatically
making online buying more and more economical
==============
More good News ...: With Explosion In Incomes
There Will Be More Cars
Leading to More Traffic
Leading to Increase In Time Spent In Travelling
Making The Initial 1 hour assumed for shopping offline
increase to 2 hours 🙂
==============
Even More Good News
With The Real Estate Prices Reaching Sky
The rental And Administrative Expense Of An Offline Trader Goes Higher
========
Some More Good News
With online sellers really posing serious competition to offline tarders
advertising strategies of offline sellers will be marked up
All In All , The Merits Of Online Selling Are The Flavor Of The Decade ..
So Enjoy Sellng Honestly

[coolbrasco]

runalaila_in1/others Well said !!!

Added to that...

1. A Buyer can compare same products from 100's sellers in few seconds. You cannot do it in real shop.

2. Environment friendly shopping in eBay. You don't have to carry note, you don't have to struck in traffic, you are supporting Greenpeace activities buying from eBay. Our country also saves fuel cost by using online purchase.

3. Other convenience like you can order a gift to a friend/family though you are away from country.

4. There are certain things which you want to find is not in the real shop, like antiques, rare stamps.

5. You have chance to keep your personal details in confidence. By checking the price from 100's item from our shops, you don't have to be guilty of not buying after looking. In the real shop if you visit there, and see 100 saris and just step down the shop buying nothing, you hear the comment from your back. You cannot visit the place again.

6. You save time, that's most important in life and you can spend that with your family or doing something more useful than hang around shopping for small things.

7. Some of the items you cannot go and check the items in real shop if you are husband looking something special for your wife, like lingerie products. Easily you can buy from eBay and most of them are private listing.

8. You don't have to be at the eBay shop all the time, Once you have right listing, you have to just relist,reply, and ship the item. In the real shop you sell or not you have to be there. Some rainy days you even if you don't have a single customer you have to sit in the shop.

Regarding fees, already runalaila_in1 explained. Even in the small business you have to pay rent/electric/water/your time, until you have a reputation in that location. Same in eBay, until your seller identity have a reputation you have work hard to get feedback points. After that you will have good time. In below 3 months time, if you cannot just sell if you are listed. I got my first sales after 20 days. I should not say that is 20 days is a loss. It is my learning period, i have to invest my time and money to learn how to sell successfully in eBay.

Good luck.

Kind regards,
CoolBrasCo.
PowerSeller.

[sareewholesale]

I Thought They Were The Lowest ...
Compare With Most Other Online Portals And I Am Sure You Will Also Come To The Same Conclusion 🙂

[runalaila_in1]

Hey Khadishop ...
Dont Shy From Listing Citing High Charges
It Will Deinitely Be A good Experience , Do Not Worry

[manomanju*com]

Selling online is a good way to earn some extra money from home…:-)

[veedeedirect]

Just to put things in a proper direction.

Selling cost on ebaY is definately low but it is not the lowest by far.

1) Currently in the offline market for product such and mobiles and fastmoving CE products, retail marings are approx 1 - 5 %. Even big retail chains like Big Baazaar work on such margins.

2) Cost of selling on ebay comes to approx 10-12% if you factor in the listings fees and you opt for a few listing enhancements.

3) The 11% does not count towards the time spend on UPI and FVFs. The time spent giving all kinds of proof to TnS. This would take about 4%-5% of total sales. So the actual cost of selling on ebay would be about 15% and this this does not cover the cost of enterprise, i.e. operating cost in the sense of rent, salaries, utility bills, etc. So currently the costs of selling online are comparable to costs of selling offline.

4) The notion that other ebay is far cheaper than other sites is not true in its entirety. Currently certain other likes like I.com, R.com and S.com are charging 5% or even less for fast selling Branded CE products. This includes the gateway charges (PaisaPay in ebay terms). For this 5% they even take full chargeback cover. They even take care of logistics (so workload on seller is even less). Compare this to the approx 15% which it costs to sell on ebaY.

Yes, selling on ebaY is a very cost effective solution but it is not entirely correct in saying that it is the cheapest solution for all products across the board.

[adit999]

Hey Guys,
This is a good discussion here. I think eBay should lower the charges on high prices items & electronics. My dear seller friends who are not grey market players will understand what I mean.
There are too low margins involved with selling official electronics with bill and warranty. 😞
Anybody have any suggestions please let me know.
Thanks & take care,
Adit.