wordpress blog stats
Connect with us

Hi, what are you looking for?


eBay India Hikes Charges, Pressure To Earn?

Annkur P Agarwal is the Founder and Editor of OnlyGizmos, and has been a retailer since 2002. He shares with us, his views on a recent hike in charges at eBay India.

Shopping online in India is by design more expensive than offline, with gateway charges, shipping and commissions adding to the cost. This week eBay India announced another hike in its Final Value Fees, accompanied by an increase in gateway cost:

– PaisaPay (eBay’s own payment solution for India) has increased its charges from 4.5% to 5% (for a seller that means over 5.5% with Service Tax). A seller has to mandatorily offer PaisaPay on eBay.in, so the listing would have a minimum markup of PaisaPay fees of 5.5%, apart from eBay’s commission
– Many top categories with high value products like Laptops, Point to shoot cameras and LCDs have got a bump from 1% to 2% (TV accessories goes up from 1% – 5%), whereas almost all lifestyle categories have gone from 5% to 7% (this would mean a markup of over 13% with gateway charges). There are categories that are unchanged and SLR cameras have dropped from 5% to 2%. Details here.


This marks the continuation of a reversal of policy from eBay India – a few years ago, eBay India had boldly reduced its commission charges (Final Value Fees) from 5% to 1%, and this helped vendors on the site to make their pricing competitive and get closer to the offline prices. However, this is now the second increase in charges from eBay India, after an increase in September 2010.

Advertisement. Scroll to continue reading.

As you would expect the sellers community on eBay isn’t very pleased. The changes go live from 16th June 2011 (meantime sellers are protesting for a roll back).

Encouraging Changes

One thing that sellers are happy about is the fact that premium shops would now be charges listing fees. Currently Premium Shop owners who pay Rs 2999 per month to eBay had to listing charges and thus you would see over 25000 listings, crowding the site. These sellers would now be charged a nominal Rs 0.25 per listing along with a Rs 1000 hike to monthly fees (now Rs 3999 instead of Rs 2399)  for maintaining a shop.

Another encouraging change that eBay is making, is on the search front. Currently if you search an iPhone on eBay.in, you would be flooded with accessories for iPhone costing less than Rs 1000 and you would have to navigate and find the product. The new search algorithm would give more priority to products and not accessories. The new algorithm also takes into account sellers track record which is measured by buyer feedback.

Pressure To Sell?

Personally I have always disliked the practice of eBay India offering coupons or subsidizing products on its homepage to get sales. At the same time, having started my career as a seller on Baazee.com (eBay.in’s original avatar) in 2002, and I know that they have invested a lot in building an ecosystem and fueling entrepreneurship in the space. Given the challenges that a platform which allows small traders to buy and sell has, eBay.in has undoubtedly provided the best experience to its buyers compared with similar platforms like Rediff or Indiatimes shopping who been a heaven for sellers selling cheap goods with poor service.

Advertisement. Scroll to continue reading.

But the game is changing, players like Flipkart, Infibeam and Letsbuy have a unique advantage over eBay – they directly source and sell products, which provides them economies of scale that 1000 vendors doing their own small sourcing and selling at a markup on eBay, do not have. They can’t compete on pricing with a Flipkart or a LetsBuy.

At a time where online retail seems to be taking off, and new players are launching services, this isn’t very good news for small and medium traders on eBay.in.

(Updates: some corrections, including grammatical, as well as some of the rates mentioned incorrectly earlier changed)

(c) Annkur P Agarwal. The views expressed above are those of the author, and not necessarily representative of the views of MediaNama.com

Disclosures from Mr. Agarwal: a) I have been a seller b) I still have indirect/direct interest as I have also invested in a retail entity which directly sells on eBay India.

Disclosure from MediaNama: Indiatimes, mentioned in this report, is an advertiser with MediaNama

Advertisement. Scroll to continue reading.

Written By

MediaNama’s mission is to help build a digital ecosystem which is open, fair, global and competitive.



Studying the 'community' supporting the late Sushant Singh Rajput (SSR) shows how Twitter was gamed through organized engagement


Do we have an enabling system for the National Data Governance Framework Policy (NDGFP) aiming to create a repository of non-personal data?


A viewpoint on why the regulation of cryptocurrencies and crypto exchnages under 2019's E-Commerce Rules puts it in a 'grey area'


India's IT Rules mandate a GAC to address user 'grievances' , but is re-instatement of content removed by a platform a power it should...


There is a need for reconceptualizing personal, non-personal data and the concept of privacy itself for regulators to effectively protect data

You May Also Like


Google has released a Google Travel Trends Report which states that branded budget hotel search queries grew 179% year over year (YOY) in India, in...


135 job openings in over 60 companies are listed at our free Digital and Mobile Job Board: If you’re looking for a job, or...


Rajesh Kumar* doesn’t have many enemies in life. But, Uber, for which he drives a cab everyday, is starting to look like one, he...


By Aroon Deep and Aditya Chunduru You’re reading it here first: Twitter has complied with government requests to censor 52 tweets that mostly criticised...

MediaNama is the premier source of information and analysis on Technology Policy in India. More about MediaNama, and contact information, here.

© 2008-2021 Mixed Bag Media Pvt. Ltd. Developed By PixelVJ

Subscribe to our daily newsletter
Your email address:*
Please enter all required fields Click to hide
Correct invalid entries Click to hide

© 2008-2021 Mixed Bag Media Pvt. Ltd. Developed By PixelVJ