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Power Seller Tip Series -- 6 To Store or Not to Store

by: jcarolek( 3451Feedback score is 1000 to 4,999) Top 1000 Reviewer
3 out of 5 people found this guide helpful.
Guide viewed: 338 times Tags: Stores | Auction | Inventory | Fees


When considering a store, consider the following basic analysis.  I believe stores can provide a great benefit to sellers, but consider it prudent to do the analysis first.

Store monthly subscription fees

Basic Store: $15.95 per month

Premium Store: $49.95 per month

 

Listing fees for store inventory:

Starting or Reserve Price              30 days   Good 'Til Cancelled*


 US$0.01 - US$24.99                             US$0.05        US$0.05 / 30 days

 US$25.00 - and above                           US$0.10        US$0.10 / 30 days
 
 

Final Value fees for Store Inventory

Closing Price                   Final Value Fee


 
Item not sold                            No Fee
 
US$0.01 - US$25.00              10.00%  of the closing price
 
US$25.01 - US$100.00          10.00%  of the initial US$25.00 (US$2.50), plus 7.00%  of the remaining closing value balance
 
US$100.01 - US$1,000.00     10.00%  of the initial US$25.00 (US$2.50), plus 7.00%  of the initial US$25.01 – US$100.00 (US$5.25), plus 5.00%  of the remaining closing value balance US$100.01 – US$1,000.00
 
Over US$1,000.01                  10.00%  of the initial US$25.00 (US$2.50), plus 7.00% of the initial US$25.01 – US$100.00 (US$5.25), plus 5.00%  of the initial US$100.01 – US$1,000.00 (US$45.00), plus 3.00% of the remaining closing value balance (US$1,000.01-closing value)
 

 

Listing Fees for Auction

Starting or Reserve Price                Insertion Fee


 
$0.01 - $0.99                                                $0.20
 
$1.00 - $9.99                                                $0.40
 
$10.00 - $24.99                                            $0.60
 
$25.00 - $49.99                                           $1.20
 
$50.00 - $199.99                                         $2.40
 
$200.00 - $499.99                                       $3.60
 
$500.00 or more                                          $4.80
 

 

Auction Final Value Fees

Closing Price                        Final Value Fee


 
Item not sold                       No Fee
 
$0.01 - $25.00                   5.25% of the closing value
 
$25.01 - $1,000.00            5.25% of the initial $25.00 ($1.31), plus 3.25% of the remaining closing value balance ($25.01 to $1,000.00)
 
Equal to or Over $1000.01 5.25% of the initial $25.00 ($1.31), plus 3.25% of the initial $25.01 - $1,000.00 ($31.69), plus 1.50% of the remaining closing value balance ($1000.01 - closing value)
 

 

Comparative analysis: Listing Fees:

 

Auction: 10 items starting at $9.99 each per 7 day period, 4 weeks per month.

 

Insertion fees: $ 16.00 per 28 day period

Gallery fees:   $ 14.00 per 28 day period

 

Total basic listing fees for 40 listings (10 listings per 7 day period) over the 28 days = $30.00

 

 

Store: 40 items at $9.99 each per 30 day period

 

Insertion fees: $ 2.00 per 30 day period

Gallery fees:   $   .40 per 30 day period

Basic Store monthly subscription fee: $15.95

 

Total basic listing fees for 40 listings over the 30 days = $18.35

 

 

Now, what about when items sell?

 

Comparative analysis: Final Value Fees:

 

Auction: 10  $9.99 items per 7 day period, 4 weeks per month. (all sell at opening bid)

 

Final Value Fees: $ 20.98 per 28 day period

 

Store: 40  $9.99 items per 30 day period, (all sell)

 

Final Value Fees: $ 39.96 per 30 day period

 

Total cost comparison:

 

Auction: (40 items at $9.99 sales):  $50.98

Store:    (40 items at $9.99 sales):  $58.31

 

Reality?

Now, of course, unless you are selling the hottest items, you will be unlikely to sell all of your listings at auction and even less likely to sell them in the store on the first listing period.  But, even in the best case scenario, for those listing only a few items per week, the auction sales, all told, end up being the better choice.

If you presume items will not sell in the first go round, and that you can drive loads of traffic to your stores, the store can be a great advantage.

One KEY to taking a nip out of the 10% FVF charged for store inventory items is to get your customers to use the referral link to your store, and make their purchases once there.  You will get a 75% rebate of the FVF for store referral credit.

So, with external methods to drive customers to your store items, you can change make the store lisitings really work for you.  For me, the key is listing a LOT of items in the store and running 10 or more auctions per week to drive the traffic to the store.  I hope this has been helpful.


Guide ID: 10000000004243877Guide created: 08/26/07 (updated 05/19/08)

 
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jcarolek
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