Rare Book Monthly

Articles - September - 2008 Issue

eBay Slashes Fixed Price Listing Fees...<i>But Why?</i>

Lorrie

Ebay's Lorrie Norrington announces changes in fees for fixed price sales.


By Michael Stillman

Ebay has announced that it is slashing its charges, effective September 16, on fixed price listings. These are no small adjustments. In an August 20 posting on the eBay site, eBay Global Operations President Lorrie Norrington announced that the changes would amount to a 70% reduction in listing fees on "Buy It Now" items. Insertion fees, which previously ranged from $.35 for an item with a starting price under $10, to $4 for one with a starting price over $500, will now be $.35 regardless of price. The reduction on books listed is even greater. The previous range of $.25 to $4 is replaced with a flat $.15 regardless of starting price.

Ebay will take back some of that lost listing revenue after the sale. For books, the previous 8.75% commission on the first $50 will rise to 15%. For amounts between $50 and $1,000, the commission rises from 3.5% to 5%, while amounts over $1,000 rise from 1.5% to 2%. Interestingly, some items in the electronics area, particularly computers, will see reductions in both listing fees and commissions. Ebay evidently has concluded that this is an area where it must do a better job of competing. The commissions of 15%-5%-2% for books are but 6%-3.75%-1% for computers. Meanwhile, items not sold will continue to be free of any closing fees.

There is no corresponding reduction in charges on items sold in eBay's traditional manner - via auction. As Ms. Norrington says, "We believe this format is already a good deal, especially when you list with a low start price." In other words, eBay is making a major move to encourage more sellers to list at fixed prices.

Another change, one that should help eBay's revenue stream, is that they will no longer allow payment by check or money order. Payment must now be made electronically, with one of those options being PayPal, an eBay company which provides income to its parent. Additionally, starting November 1, in an attempt to increase buyer confidence, eBay will require sellers to maintain at least a 4.3 seller rating (DSR - Detailed Seller Rating). Ms. Norrington stated that "only a small fraction of sellers fall below this threshold."

Why has eBay initiated these price reductions? If you guess simple generosity, or an attempt to soothe sellers who have been upset by price increases in the past, you are probably wrong. Those most upset have generally been auction sellers, who do not benefit from these changes. Nor does it appear that this is a strategy of increasing sales volume so much as to outweigh the loss in fees. The cuts are too great to be explained this way, particularly since it is out of character with eBay's history of how to increase corporate revenue. The real explanation here appears to be Amazon, and a fear by the number one online retailer that number two is threatening to displace them. Amazon's revenues have been growing rapidly over the past year, while growth has been slowing at eBay.

Many analysts have attributed Amazon's more rapid growth to two factors: (1) shoppers like the ease and certainty of fixed price buying, and (2) they have more confidence buying from Amazon than from eBay's independent sellers. There is a bit of irony here in this explanation. It was just a couple of years ago that eBay's overwhelming strength in the auction sector chased Amazon out of that business. Meanwhile, Amazon has been expanding its offerings from independent sellers, even as it continues to stock and sell most of the merchandise it sells.

Nevertheless, eBay now sees its reputation as an auction company as a weakness, and is determined to place greater emphasis on being a more traditional online retailer (there's another irony - "traditional online retailer!"). Lower fees for fixed price listings should bring in more of this traditional type of sales. Meanwhile, eBay will be giving greater prominence to larger sellers with higher ratings, designed both to bring in more high volume merchants and reassure consumers they are buying from people they can trust.

Rare Book Monthly

  • Bonhams Fine Books and Manuscripts, 8 June 2016, New York
    Bonhams June 8: ARISTOTLE.<br>384-322 B.C.E. De animalibus <br>US$ 300,000-500,000.
  • <b>Dirk Soulis April 30:</b> Lot 131. After Karl Bodmer (1809-1983) Pehriska-Ruhpa Aquatint. $1500-$2500
    <b>Dirk Soulis April 30:</b> Lot 212. Catlin Snow Show Dance Hand Tinted Lithograph No. 14. $1000-$2000.
    <b>Dirk Soulis April 30:</b> Lot 213: Hurlimann After Bodner Saukie Fox Indians Aquatint. $500-$1000.
    <b>Dirk Soulis April 30:</b> Lot 226: After Karl Bodmer. Dance of the Mandan Indians Aquatint. $1000-$1500.
    <b>Dirk Soulis April 30:</b> Lot 281: Karl Bodmer (1809-1983) Massika and Wakusasse Hand. $750-$1500.
    <b>Dirk Soulis April 30:</b> Lot 244: After Catlin Nah-To-Toh Pa Lithograph, Plus Another. $300-$600.
    <b>Dirk Soulis April 30:</b> Lot 305: History...Indian Tribes N. America, McKenney & Hall, 3. $3000-$5000.
    <b>Dirk Soulis April 30:</b> Lot 316: Catlin, George, "North American Indians," 1841, 2 Vols. $500-$1000.
    <b>Dirk Soulis April 30:</b> Lot 284: Catlin, George, "North American Indians," 1926, 2 Vols. $200-$300.
    <b>Dirk Soulis April 30:</b> Lot 285: Coleson, Miss Ann, "Among the<br>Sioux Indians!" 1864. $500-$1000.
    <b>Dirk Soulis April 30:</b> Lot 289: Heard, L.V.D., Sioux War and Massacres, 1865, First. $400-$800.
    <b>Dirk Soulis April 30:</b> Lot 288: Life of Life of Ma-Ka-Tai-Me-She-Kia-Kiak or Black Hawk, 1834. $400-$800.
  • <b>19th Century Shop.</b> LINCOLN, ABRAHAM. <i>A superb collection of manuscripts signed by Lincoln and relics related to Lincoln’s death</i>. Washington, 1864-1865
    <b>19th Century Shop.</b> Rare Relic of the Underground Railroad (1857). <i>$500 Reward Ran away ...</i>
    <b>19th Century Shop.</b> CARTER, SUSANNAH. <i>The Frugal Housewife,</i> (1772) the second American cookbook, plates by Paul Revere.
    <b>19th Century Shop.</b> SCHIRRA, WALTER M.. Icon of the American Space Program. <i>A Complete Set of Schirra’s Flight Log Books (1947-69).</i>
    <b>19th Century Shop.</b> A fine pair of daguerreotypes, one a black nurse holding a white baby, the other the white parents. Maryland, c. 1853.
    <b>19th Century Shop.</b> The Internet. (COMPUTERS.) CERF, VINTON & KAHN, ROBERT. <i>"A Protocol for Packet Network Intercommunication" in IEEE Transactions on Communications.</i>
  • Old World Auctions (May 4): Lot 18. Blaeu, <i>Nova et Accuratissima Totius Terrarum Orbis Tabula</i>, 1660.<br>Est. $14000-$17000
    Old World Auctions (May 4): Lot 20. Pitt, <i>Nova Totius Terrarum Orbis Geographica ac Hydrographica Tabula</i>, 1680. Est. $9500-$11000
    Old World Auctions (May 4): Lot 65. Ortelius, <i>Americae sive Novi Orbis, Nova Descriptio</i>, 1571. <br>Est. $6000-$7000
    Old World Auctions (May 4): Lot 84. Bailleul, <i>L'Amerique Divisee en Ses Principales Parties</i>, 1752.<br>Est. $19000-$22000
    Old World Auctions (May 4): Lot 99. Sayer & Bennett, <i>The American Military Pocket Atlas</i>, 1776. <br>Est. $10000-$12000
    Old World Auctions (May 4): Lot 269. Reid, <i>Plan of the City of Washington in the Territory of Columbia</i>, 1796. <br>Est. $2750-$3500
    Old World Auctions (May 4): Lot 291. Carleton, <i>Map of Massachusetts Proper</i>, 1801. Est. $12000-$14000
    Old World Auctions (May 4): Lot 378. Keulen, <i>Pas Kaart vande Noord Oost Kust van Cuba en d'Oost Kust van Florida</i>, 1695. Est. $3250-$4000
    Old World Auctions (May 4): Lot 651. Ptolemy/Fries, <i>Tabula Superioris Indiae & Tartariae Maioris</i>, 1541.<br>Est. $3000-$4000
    Old World Auctions (May 4): Lot 688. Wit, <i>Nova Africa Descriptio</i>, 1660.<br>Est. $2750-$3500
    Old World Auctions (May 4): Lot 706. Ortelius, <i>Maris Pacifici</i>, 1589.<br>Est. $8000-$9000
    Old World Auctions (May 4): Lot 727. Audubon, <i>Least Stormy-Petrel</i>, 1836. Est. $1400-$1700
    Old World Auctions (May 4): Lot 741. Bordone, <i>Isolario</i>, 1547.<br>Est. $16000-$19000
    Old World Auctions (May 4): Lot 747. Teesdale, <i>A New General Atlas of the World</i>, 1835. Est. $2000-$2750
    Old World Auctions (May 4): Lot 752. Colton, <i>Colton's Atlas of the World Volume I and II</i>, 1856.<br>Est. $2500-$3250
    Old World Auctions (May 4): Lot 760. Prevost, <i>Histoire Generale des Voyages ... Tome Quatorzieme</i>, 1757. <br>Est. $2400-$3000
  • <b>Swann Auction Galleries May 5: Autographs</b>
    <b>Swann Auction Galleries May 5:</b> Anne & Margot Frank's copy of <i>Grimm's Fairy Tales</i>, in which Anne wrote her own and Margot's name, circa 1940. $20,000 to $30,000.
    <b>Swann Auction Galleries May 5:</b> Albert Einstein, group of 4 letters Signed to Helmut L. Bradt regarding Bradt's emigration to the U.S., one bearing Nazi censor ink stamps, 1939-40. $10,000 to $15,000.
    <b>Swann Auction Galleries May 5:</b> Archive of items from Ludwig Bemelmans to producer Mary K. Frank, concerning <i>The Street <br>Where the Heart Lies</i>, 1959-62. <br>$10,000 to $15,000.
    <b>Swann Auction Galleries May 5: Autographs</b>
    <b>Swann Auction Galleries May 5:</b> Archive of correspondence to<br>Edwin A. Van Valkenburg from President Theodore Roosevelt and members of his family, 1913-21. $6,000 to $9,000.
    <b>Swann Auction Galleries May 5:</b> Oscar Wilde, manuscript notes panning a book on book collecting, circa 1886. $5,000 to $7,500.
    <b>Swann Auction Galleries May 5:</b><br>John Hancock, partly-printed document Signed as Governor of Massachusetts, Boston, 1781.<br>$4,000 to $6,000.
    <b>Swann Auction Galleries May 5: Autographs</b>
    <b>Swann Auction Galleries May 5:</b> Franz Liszt, Autograph Letter<br>Signed to Carl Gille, Rome, 1869. $4,00 to $6,000.
    <b>Swann Auction Galleries May 5:</b> Joseph Conrad, photograph Signed and dated, 1918. $1,000 to $2,000.
    <b>Swann Auction Galleries May 5:</b><br>Two Guns White Calf, photograph postcard Signed with his pictogram, 1929. $800 to $1,200.

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