
Ebay slashes compulsory buyer fees - will customers be better off?
The online marketplace introduced a compulsory 'buyer protection fee' to be included with every purchase in February.
Buyers were told they would pay a flat fee of 75p per item, which would only be charged once if they bought multiple items within a listing.
It also charged 4 per cent of the item price up to £300, and 2 per cent of any portion between £300 and £4,000.
Ebay has said this flat fee will be cut to 10p per item from today, and there are also changes to what percentage customers will pay on their items, excluding cars, motorcycles and vehicles, classified ads and property.
Now, buyers will pay 7 per cent of the item value up to £20, 4 per cent between £20 and £300, and 2 per cent of any portion from £300 to £4,000. There is no fee for the portion of the item price over £4,000.
A £10 item will only incur a 10p flat fee, but an item worth £20 or more will incur the same fee, plus a £1.40 variable fee. This is 50p less than the previous charge, which charged a 75p flat fee and 80p variable fee.
Listings by business sellers will continue to not have the compulsory buyer protection fee because the sellers already pay fees for each of the items they sell.
It also isn't applied to listings from private sellers not based in the UK, and excludes vehicles, classified ads and property.
It comes after Ebay scrapped its private selling fees in a bid to compete with the likes of Vinted and Depop, which also charge a mandatory buyer protection fee on every item, instead of seller fees.
Ebay's new selling rules mean that private sellers no longer pay final value fees or regulatory operating fees, saving them the usual 13.22 per cent fee.
However, Ebay sellers can only sell up to 300 items a month for free, instead of the 1,000 previously, after which sellers pay 35p per listing.
Ebay's new buyer protection rules also mean customers will not part with their cash until the item has been successfully delivered and they will also have access to 24/7 customer service.
The website also said that it is introducing faster payments for 'more experienced sellers' from 6 August, which means they'll receive their funds within 24 hours of a sale.
To qualify, sellers will need to have completed at least 10 sales totalling £150 or more within the last five years, and had no more than two unresolved cases in the last 12 months.
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