eBay raising fees - again

Well, eBay is at it again, with a new fee structure that goes into effect on Jan. 30.

The change that is likely to affect most sellers is that the insertion fee is being raised from 35 cents to 40 cents on all auctions with a starting bid of $1.00 to $9.99.

If you're not already doing so, this should provide you with an extra incentive to start your auctions at 99 cents or even a penny. You'll save 20 cents in listing fees on every auction if you do this.

Sure, there's some risk to adopting this pricing structure, but many Titanium PowerSellers have found great success this way.

Remember, eBay shoppers are hoping for a bargain and there's something incredibly appealing about the notion of paying 99 cents for a diamond ring, a DVD player, a new computer, etc. Usually, a 99-cent auction invites a frenzy of bids and you, the seller, end up getting a fair price for your item.

Just remember to do you Marketplace Research before posting a penny or 99-cent auction to make sure that there's sufficient demand for the product that you're selling. And I wouldn't try this approach with commodity items like DVDs, books or CDs. Try using the store format instead if you're looking to minimize your eBay fees.

Let me know what you think of eBay's new fee structure and yearly rate hikes.