Pricing Changes on eBay India

[seemak@ebay.com]

Dear Community Members,

Together with you we have been pursuing the goal of growing the online shopping business in India. To do this we have been investing continuously, along with our seller-members, to achieve the common objective of buyer delight.

Changes in eBay Fees: Post discussions with our key sellers across categories and after understanding the commercial dynamics of the ‘supply-chain’ in various product categories, we have made changes to the eBay.in fee structure and these can be viewed on the announcement board.

We would be conducting an online workshop tomorrow from 4 to 5 PM on this thread & we encourage you attend this Workshop, or use our Customer Support Resources to help you understand the overall Fees changes.

Regards,
eBay Team

[seemak@ebay.com]

Dear Sitare_Jewels,

We understand that real gold and diamond jewelry are highly price sensitive categories and therefore we have not made any changes in the final value fees.

The FVF has increased in the non gold and non diamond categories like Imitation & Fashion jewelry where we believe there is a scope for improving eBay’s take.

Regards,
eBay Team

[seemak@ebay.com]

Dear IndConcepts,

We agree with your first point that the marketplaces model makes eBay and its sellers successful. Not just on eBay, in any marketplace buyers will always look for the lowest price in any price sensitive category.

As you rightly mentioned that the volumes have gone up, eBay has been consistently investing to being new buyers on the site which has in turn given boost to sellers’ business on eBay.

Regards
eBay Team

[seemak@ebay.com]

Dear youngistan,

From time to time, eBay has always aimed at getting buyers through offline marketing campaigns like Diwali & Valentine Promotions. In addition to this, we run online campaigns on a regular basis.

We believe that the current pricing changes will improve the quality of the listings on the site which would increase the buyer conversion. This in turn will benefit all our sellers with higher sales.

Regards
eBay Team

[seemak@ebay.com]

Dear rajelectroniks,

Our intention behind increasing the prices is to reinvest the money back in the business to drive more buyers on the site which will in turn increase your sales.

We have made an effort to keep the pricing same in categories which are highly price sensitive such as mobile phones, laptops, desktop monitors, LCDs.

However, based on our past experience and our sellers’ feedback, we believe that there is room for increasing eBay’s take in the transactions.

Sellers may need to analyze their pricing to accommodate the changes in eBay fee.

Regards
eBay Team

[seemak@ebay.com]

Dear milanshah99 ,

Card processing fees charged by payment gateway companies have gone up recently for online industry. In addition to the Payment gateway charges, other cost components such as operating costs, seller protection costs and investments in technology too have gone up in last few years. We have not changed PaisaPay price in last few years despite the year-on-year increase in operating costs. We also made significant investment in technology costs in order to expand the payment options available on eBay India in October last year. After the recent increase by the payment gateway company we had to increase the PaisaPay pricing.

The cost of managing PaisaPay is not just about Payment gateway charges, but includes many other cost components such as Operating costs, Chargeback risk provisions, Seller protection costs, Continuous investments in product up gradation etc.

Many of our sellers often tell us that even if one were to add up all the costs of selling on eBay (PaisaPay included), for the significantly higher quantum of traffic that eBay generates, it is a far better value proposition for a business as compared to many other avenues available online.

In a listing fee scenario, sellers are likely to list products that they think have a reasonable surety to sell. This will increase the share of relevant listings available to buyers, with increased visibility, which is likely to lead to a positive impact on business in terms of increased sales and a great buyer experience.

However, as you would have to pay a fee to list an item, it is important for you to continuously evaluate your listings to improve the ROI on the listing fees that you are paying.

Also, we have plans for new sellers which will soon be announced.

Regards
eBay Team

[seemak@ebay.com]

Dear snrama,

We have increased the FVF from 1% to 2% in Cameras & Optics, Consumer Electronics, Laptops & Computer Peripherals categories excluding a lot of price sensitive categories.

The FVF in SLR Camera Lenses has been reduced to 2% from the current fee of 5%. We believe that there is more room to play in the TV Accessories category, the FVF in this category has been increased to 5%.

Regards
eBay Team

[seemak@ebay.com]

Dear teslamachine1856,

For a Basic shop subscriber, there is only a change in the shop subscription fee, and not on the insertion fees. We believe that our shops definitely provide additional value to our sellers and therefore an increase in the pricing.

The objective of having MAX Cap is to monitor the shipping charges levied by the sellers to ensure that the buyers are not charged exhorbitantly.

Regards,
eBay Team

[linusstudios]

Dear SeemaK

Do let us know- any one seller who gave you the feedback that there is scope of increase in the "ebay's take", I am assuming that it is a canned response.

Also Did Anyone notice the title or heading for this Discussion. "Pricing changes on eBay India", with this a message has already been sent to sellers- Increase your pricing. Should it not had been - "Fees revision on eBay India".

Also the language or the essence of the message in the announcement was such negative that any seller with self respect would feel offended.

I am still surprised till now no body has raised the real reason why insertion fees have been imposed in Premium shops. Is it not because of a couple of sellers like- cart2India or North square who misused the facility to copy and list over 5,00000 listings per account. So is it right to penalize all the sellers for a silly mistake or loophole left in framing eBay policies couple of months back when free listing was introduced.

There are many questions which are unanswered. Burying head in sand does not takes away the troubles. Buyers are smart, no matter how much you spend on marketing the bottom sales pitch is the price, High fees means high price. And no ones needs to be a IIM Mba to understand this.

[seemak@ebay.com]

Dear machpowertool,

As you rightly mentioned that eBay has alwaysfocussed on providing a great ecommerce experience, and will continue to do so. Increase in the prices is a step towards reinvesting in the business to get more buyers to shop on eBay which would increase the overall sales of the sellers.

We have kept in mind the price sensitivity in certain categories and have consciously not changed pricing in these categories.

Regards
eBay Team

[linusstudios]

Dear ebay staff handling this discussion.

Kindly refrain from using canned answers or statements-

Here is the example -
This Discussion 44 of 48-
"Many of our sellers often tell us that even if one were to add up all the costs of selling on eBay (PaisaPay included), for the significantly higher quantum of traffic that eBay generates, it is a far better value proposition for a business as compared to many other avenues available online."

This is copy pasted from Mr Anil's post 4 of 12 in following discussion-
http://forums.ebay.in/thread.jspa?threadID=500006533

Its not bad or incorrect but you know thing with canned responses. People loose interest.

.