Another Fee Increase For EBay Drop ship Companies In 2011

EBay drop shipping services are looking at prospects of reduced margins as the news about another fee increase is making the rounds. This time, it is in a completely different form, though. Not satisfied with the various collections made through listing fees, final value fees when your merchandise is sold, and PayPal fees when the buyer pays for the merchandise, they will soon be collecting fees on what you take from your buyers for shipping the merchandise.

What it effectively means is that sellers will be rewarded if they resort to free shipping or low-cost shipping. From July on, eBay drop shipping services will have to pay fees on shipping costs, which will reduce a seller’s final value fees on the entire transaction. The fee is being touted as a good thing for sellers, but then there is speculation among the online trading community that this is simply another way for eBay to make more money from every transaction.

EBay says that the new fees are designed to reward low-cost shipping and encourages sellers to reduce the shipping costs to a bare minimum, which will benefit consumers. For instance, if you are selling merchandise for $15, you will pay 2 percent less in fees because you are not charging any shipping. On the other hand, if you sell the same item for $12 and collect $3 on shipping, it will cost more than $4 in fees even though the final fee value gets decreased.

This obviously means that eBay dropshipping companies will have to increase the cost of merchandise to be able to offer free shipping. This will only work for fixed price listings. If you, like many others, prefer to sell in an auction format, then it becomes imperative to include the cost of shipping into your product in order to offer free shipping. It can send a wrong message to the buyers when they see an across-the-board increase in product prices.

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