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Tue June 14 2022 15:23:33

eBay Drives Up Cost of Ads for 2nd Time in 6 Weeks

By: Ina Steiner

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eBay informed sellers today it is effectively increasing the cost of advertising for some sellers by raising the minimum ad rate for Promoted Listings Standard from 1% to 2% beginning July 11th.

The announcement comes just 2 weeks after eBay raised advertising fees by changing how it calculates Promoted Listings Standard ad fees. As of June 1st, instead of basing the fees on the final selling price of an item, eBay began basing ad fees on the selling price + taxes + shipping + other applicable fees.

Sellers were quick to react to the latest change to ad fees on the eBay for Business Facebook page. "I'm incredibly disappointed with your decision to increase the minimum prompted ad rate," one seller wrote. "Talk about unfettered corporate greed."

Another seller wrote, "Are you kiddding. What a waste of time. How about you fix VERO instead of fn pride crap?"

Sellers are also discussing the changes on the eBay discussion boards, with sellers stating they may reduce their advertising spend or end advertising on eBay altogether.

The seller who started the thread published the email notification they'd received from eBay:

"We're continuously evaluating the performance and impact quality of Promoted Listings Standard as a tool to drive seller success. As part of this work, effective July 11, we'll be changing the minimum ad rate for Promoted Listings Standard from 1% to 2%. While we recognize this impacts your business, this change will ensure your campaigns remain competitive in reaching buyers in our growing marketplace, and also allow us to deliver products and services that drive best-in-class returns for eBay sellers.

"Just in the past year, we've added new Promoted Listings Standard features like an all-in-one campaign dashboard and downloadable reports that provide sellers with a convenient way to review important campaign data. On July 11, we'll be rolling out a new feature that'll allow sellers to edit multiple listings at once for both Bulk and Simple campaigns. This'll make it quicker to adjust ad rates versus having to make manual changes for each campaign.

"And there's more to come.

"Next steps

"We'd encourage you to adjust your ad rates that are below 2% on or before July 11 to 2% or higher so that your promoted listings can continue to appear in advertising placements across the eBay network. If you decide not to make any changes, those listings will still be active but won't be promoted."

The move capitalizes on the desperation some sellers are facing, with anecdotal reports of a drop in sales. One seller wrote to EcommerceBytes on Friday, for example, "Do you have or will you have some information soon on what is going on with eBay? Our sales are dead. They have tanked... nothing is getting better. What is going on??"

(If you're looking for advice, you might want to watch a video the Auction Professor ran the same day revealing ways he deals with sales slowdowns.)

Let us know how your sales have been doing and what today's announcement about eBay raising the costs of advertising through Promoted Listings Standard, which you can read more about on this page on the eBay website, means for you.

Update 6/14/2022: We asked readers who had forwarded today's eBay notification to us how it would impact them. One reader who responded said she usually promoted all of her items at 1% and said it had been working "pretty well," adding that she would "just have to go with the 2%."

She also said that when eBay first made the ads available, she used the ad rates suggested by eBay "until I noticed that some of them were 15-20%! It definitely wasn't worth that."

"I am selling on 4 sites now since eBay alone doesn't cut it anymore," she added.

Comments (15) | Leave Comment | Permalink
Readers Comments

Perminate Link for eBay Drives Up Cost of Ads for 2nd Time in 6 Weeks   eBay Drives Up Cost of Ads for 2nd Time in 6 Weeks

This user has validated their user name. by: iheartjacksparrow

Tue Jun 14 18:16:56 2022

eBay's answer to everything is to raise the fees they charge sellers.

Perminate Link for eBay Drives Up Cost of Ads for 2nd Time in 6 Weeks   eBay Drives Up Cost of Ads for 2nd Time in 6 Weeks

by: Jeff Smith This user has validated their user name.

Tue Jun 14 18:18:36 2022

Business should create and bring customers to their own website again. Like in the good old days. I think that they forgot about that. The only platform you can control is your own.

Perminate Link for eBay Drives Up Cost of Ads for 2nd Time in 6 Weeks   eBay Drives Up Cost of Ads for 2nd Time in 6 Weeks

by: comments This user has validated their user name.

Tue Jun 14 21:17:11 2022

The rate in fee increases is quite shocking.

Many categories just got fee increases in one of the recent updates.

The Quarterly shipping supply coupon goes down quarterly with the raising of price of shipping supplies.

Managed payment conversion saw a fee increase for most sellers.

Items must be priced with the new sales taxes in mind.

CPC items charge you for google bots and search engine spiders.

Costs of goods are ever increasing.

Those new 2% ads used to be free showing buyers quality items of interest.

Now those ads are full of knockoffs and generics where the seller actually has the room to pay 20% rates because they have higher profit margins.

Quality is expensive. There is only so much we can absorb. Now I have to decide to give up free shipping, stop mark down sales, or sending offers to watchers. These are all things that will prohibit my growth and that will flow back to ebay.

Price increases=amazon resellers or inferior products and leave buyers sick of bad buying experiences and going elsewhere. It has become very rare to see customers with a feedback score under 10. This means new buyers are rare and as they get burned by cost cutting sellers the site will erode for everyone.

Big ticket, high quality item sellers feel the price hike pain the deepest. If the goal is to fill the "vault" with big ticket collectables you are going the wrong direction. Keep raising fees and the "vault" might as well become an amazon fulfillment center.



Shipping costs are constantly going up.

Buyers expect free returns or you risking them causing you penalty fees.

Perminate Link for eBay Drives Up Cost of Ads for 2nd Time in 6 Weeks   eBay Drives Up Cost of Ads for 2nd Time in 6 Weeks

by: SomeRandy This user has validated their user name.

Tue Jun 14 21:40:31 2022

This is typical behavior with eBay, every quarter they find a new way to add fees into the system to make up for lost revenue from their poor marketing. This company cant manage to even manage to retain new customers as they keep losing them all to Amazon. eBay is going to keep gouging sellers until everyone finally bails ship and realizes that the money they spend paying eBay could have been spent on their own independence outside of eBay. There was a point in time I understand certain fee increases, but now its just became a quarterly habit with eBay with little return to the sellers for the money to pay eBay.

Perminate Link for eBay Drives Up Cost of Ads for 2nd Time in 6 Weeks   eBay Drives Up Cost of Ads for 2nd Time in 6 Weeks

This user has validated their user name. by: COVID-19

Tue Jun 14 21:58:01 2022

This is one of the many ways eBay "increases" its revenue that it reports to its corporate overlords.

Don't complain, folks. You are the ones playing along with it by stubbornly remaining on eBay.

Perminate Link for eBay Drives Up Cost of Ads for 2nd Time in 6 Weeks   eBay Drives Up Cost of Ads for 2nd Time in 6 Weeks

This user has validated their user name. by: Rexford

Wed Jun 15 07:37:40 2022

This is very telling.  If the company was performing well they would not have to do this. But then again, we know how greedy eBay is.  Sellers could shut this Ads scheme down with a single click.  I guess that there are some sellers who love the beatings.

There is one thing that we all know though--it's always on the backs of sellers.  We certainly haven't seen any layoffs or cutbacks at eBay.  And I assume that the suds are still flowing at Walkers.

Perminate Link for eBay Drives Up Cost of Ads for 2nd Time in 6 Weeks   eBay Drives Up Cost of Ads for 2nd Time in 6 Weeks

by: Old School Seller This user has validated their user name.

Wed Jun 15 08:14:31 2022

On June 10th Goldman Sachs downgraded eBay stock to ''Sell''.  Stock closed at $48.82 on May 27 and closed Tuesday at $42.58.  eBay is starting to wave the tin cup.

Perminate Link for eBay Drives Up Cost of Ads for 2nd Time in 6 Weeks   eBay Drives Up Cost of Ads for 2nd Time in 6 Weeks

by: That Guy This user has validated their user name.

Wed Jun 15 13:11:44 2022

Does the greed ever end with all these corporate a$$holes?

Perminate Link for eBay Drives Up Cost of Ads for 2nd Time in 6 Weeks   eBay Drives Up Cost of Ads for 2nd Time in 6 Weeks

by: Plain1 This user has validated their user name.

Thu Jun 16 02:19:08 2022

If ebay would just concentrate on sellers selling they could make more money. I have a lot of stuff to sell and they could make a lot more off me, but things have changed. A lot has to to with positioning on searches.

Perminate Link for eBay Drives Up Cost of Ads for 2nd Time in 6 Weeks   eBay Drives Up Cost of Ads for 2nd Time in 6 Weeks

by: leavingNY This user has validated their user name.

Thu Jun 16 03:58:42 2022

Ebay is always looking for ways to get make more money then I do from my items. The problem is that with the HUGE ebay fees and HUGE shipping cost, my items make me less and less profit. So Ebay sellers have to price themselves right out of the market for many items. People will go without or shop locally now. We are in a recession now. Buyers cannot afford to go on shopping sprees now except for necessary items they need. Before buyers would buy not only things they needed, but also bought stuff they wanted. When buyers are paying HUGE prices to just live now, they don't shop for extras. All ebay sales have tanked due to the poor economy and price gouging companies like Ebay who don't understand that people will just go elsewhere they can buy for less without all the added fees to sellers listings. I will be stopping ALL promoted listings with this new update, which is a HUGE Rip OFF !  

Perminate Link for eBay Drives Up Cost of Ads for 2nd Time in 6 Weeks   eBay Drives Up Cost of Ads for 2nd Time in 6 Weeks

by: Marty2020 This user has validated their user name.

Thu Jun 16 07:46:05 2022

From the beginning, I have used the 1% promotion rate. I won't automatically go with 2%. I will see how no "promotion" affects already dwindling sales. If they remained the same, that would be a sweet revenge.  

Perminate Link for eBay Drives Up Cost of Ads for 2nd Time in 6 Weeks   eBay Drives Up Cost of Ads for 2nd Time in 6 Weeks

by: Valaset This user has validated their user name.

Thu Jun 16 09:05:15 2022

I have been selling on the platform since 2005.  Normally my business adapts to any changes at EBAY.  The 1% to 2% rate has no impact on my business.  Most of my items are promoted 4-7% depending on the item.  (I have healthy profit margins)

But something in the last 4-6 weeks has definitely changed.  My sales are down 25%.  No matter what I price my products at (or mark them down, or promote them), items are just not selling.

Now is the time they need to increase their marketing budget and drive more customers to the platform.  

Perminate Link for eBay Drives Up Cost of Ads for 2nd Time in 6 Weeks   eBay Drives Up Cost of Ads for 2nd Time in 6 Weeks

by: cillianred This user has validated their user name.

Thu Jun 16 10:44:20 2022

I recently purchased a large lot of items for which I needed to research ebay prices. When I research pricing, I not only research sold prices, but also current pricing. I have been doing this for years and years without any problems, but suddenly, with this lot, I was often unable to find current listings for items that commonsense told me ebay should have. So I went OUTSIDE of ebay and Googled the same items. And, there they'd be - CURRENT ebay listings for the items I was researching. Went back, double-checked through ebay's search...nada...those listings were invisible from within ebay.

This happened repeatedly for various items, so either ebay has ramped up the hiding of listings or there is a serious glitch going on.

If buyers can't see the listings, then obviously those items don't sell and ebay doesn't get the final value fees. I really don't understand the hiding of listings...

Perminate Link for eBay Drives Up Cost of Ads for 2nd Time in 6 Weeks   eBay Drives Up Cost of Ads for 2nd Time in 6 Weeks

This user has validated their user name. by: The End

Thu Jun 16 13:44:09 2022

There's alot of driving going on.
Put Ebay in the trunk.
We're going for a long ride.....

Perminate Link for eBay Drives Up Cost of Ads for 2nd Time in 6 Weeks   eBay Drives Up Cost of Ads for 2nd Time in 6 Weeks

by: notfunanymore This user has validated their user name.

Mon Jun 20 16:37:42 2022

It should come as no surprise that they increased fees. Its the only way to make more money on the backs of sellers. If most people who sell took the time to look, they make more money on sellers, than sellers make.  So, effectively, you work for them with no benefits.  



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