Question
Obviously, it is intended to shift some things around...
Why did they do it like they did?
And please, "Because they are greedy" is not an answer here. That is an answer in the other thread, but not in this one. Yes, we know they are greedy. Hell, WE are greedy too! But this isn't about greed, or "feepay" or any of that... it's about what they are trying to accomplish by restructuring the fees as they have.
Answer
My only guess is because stores caught on and auctions are on the downside, meaning they are commanding lower FVF's....I don't have an answer other than that.
Or, the takeover of Pay Swell...just was more than they anticipated...
Answer
From the eBay Booksellers Discussion Board:
bookscm*ebay.com
01/12/05 12:57 PM(#55 of 87)
Hi Everyone
These fee increases are based on a variety of factors, including the resources and infrastructure necessary to support the Stores program and continue to expand its features, functionality, and value.
I appreciate your frustration with this announcement, as no fee increase is ever going to be warmly greeted. There is probably very little I could say here that would alleviate that frustration.
An email version of this announcement will be showing up in My eBay message centers later today.
Giles
So, I guess it is to pay for all those "enhancements" we community members requested.
Sort of a self-fulfilling prophecy.
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No. Stop. Think about it for a minute. They didn't do this haphazardly, they have a reason for increasing the fees they increased, by the large amounts they increased them... and without increasing other fees.
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I give. What are the reasons? Quarterly's? Shareholders meeting coming up? Maybe that chick from Google McCafferty coming onboard? Ok, I give. LMK
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My guess on the 10 day auction raise is there are too many users using it, putting a strain on the sytem.
The gallery increase may be because they are increasing the size of the picture...again, a heavier drain on the system ?
The BIN fee...I don't have a clue....except that I always thought it was a bit low in comparison to the other upgrade fees
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My prophesy is this
it was all finely planned
give store sellers great deals on low listing fees and subscription fees, build up the store numbers to make the bottom line look good to shareholders.
But it backfired
there is too many lisitngs parked in the stores saving the ads for future use, and it is bogging down their equipment with low sell through rates on stuff that is just parked.
soooo, how can we diplomatically get rid of the "slush" sellers and clean up the site.
We will raise subscripiton fees and make them quit or improve the quality of their stores and start working them to make them pay.
second level decision:
we need more income on the bottom line, how can we do that without pizzing off the sellers, ooo I got it, we will raise final value fees on the store items that sell, no one minds paying on an item that is sold.
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Because they knew I was finalizing plans to open a store this Spring.
That banner ad here is looking good now....
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I believe it is to make the stores more profitable. This will be accomplished only in small part by the increase in fees. Most of it will come from server space and labor being used for the more successful stores as the smaller ones drop out. It just makes sense to spend your resourses on a higher profit item. The resourses that were being used on the "lower end" stores can be now used on the big ones.
Wouldn't you rather make 5% on $10,000 a day than $100 a day?
To ebay the little stores have to be like the gumball machine at a big super market.... wasted space.
liveinhope
Answer
Why did they do it like they did?
Maybe it as the trade-off they could agree with.
Maybe they are hoping it might increase the odds of having a transaction occurring on site.
Maybe they decided that "store" owners could absorb the price increase without too large a hit to the bottom line.
Maybe store owners have had too good a deal and they decided to "level" the playing field.
Maybe that's what the employees that sell decided might cost them less, as their stock option may cushion the financial impact of the increases.
Toy Ranch -- what do you think the reason was?