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Wed Apr 1 2009 13:21:36

Would You Pay 20% Rev-Share to Reach eBay Sellers?

By: Ina Steiner

Sponsored Link

eBay launched its Project Echo initiative for third-party developers today. "Selling Manager Applications Beta" lets developers create applications for eBay sellers right on the platform, a la Facebook Apps. eBay is making its basic Selling Manager selling tool free for sellers, but will charge vendors a 20 percent revenue share for applications they build on the platform. eBay, via its PayPal online payment service, will bill sellers and reimburse developers for their share.

According to the company, "eBay's professional sellers will benefit from a streamlined and trusted site experience with access to advanced selling tools that meet their specific needs. Developers will benefit by integrating, promoting, and monetizing their applications on the world's largest e-commerce site."

A long-time eBay vendor said of the program, "Pretty much every developer going forward is going to be doing apps for SM, via echo, because it's the only real way to get any promotion so that sellers even know you exist. That's been most 3rd parties biggest problem for years."

From eBay's press release:

eBay Selling Manager beta platform is the successful result of a pilot launched in June 2008 at the eBay Developers Conference. Professional sellers, like any small business, require tools to help them manage their shipping, accounting, customer relationship management, market research, and inventory management activities on eBay. More than 87,000 third party developers have already built more than 13,000 live applications that consume eBay’s Web services. The Selling Manager beta makes it easier for eBay sellers to find and subscribe to many of these tools.

eBay's Selling Manager tool currently has 270,000 active, paying subscribers in the US.

UPS is the first transportation provider on the eBay Selling Manager beta platform, and is integrating its premier shipping software - WorldShip(TM) - directly into the eBay experience so sellers can manage shipping for their business directly within My eBay at no cost.

More information is found on the eBay Developers Program page.





Comments (21) | Permalink

Readers Comments

Would You Pay 20% Rev-Share to Reach eBay Sellers?   Would You Pay 20% Rev-Share to Reach eBay Sellers?

by: Eddie

Wed Apr 1 13:40:07 2009

20% of 'something' is better than 100% of nothing - but will the 80% you can get make it worthwhile to develop Echo apps - thats the BIG question ?

Would You Pay 20% Rev-Share to Reach eBay Sellers?   Would You Pay 20% Rev-Share to Reach eBay Sellers?

by: o.c.d.collectibles

Wed Apr 1 13:42:27 2009

One has to wonder "who, application-wise", they cherry picked to be compatible with their platform, and will ALL the ebay sellers REALLY have to pay the same percentage for these extra services?

I seriously doubt it. Since when does ebay do anything that will be of any use to sellers that they don't want? Obviously, they have just made their commitment to the "big seller" wholesalers who have access to free or much reduced rate services.

No doubt, there are plenty of sellers who do well enough on ebay that they can spare the extra 20% without any problem. After all, there are many successful sellers still on ebay!(hehe)

Would You Pay 20% Rev-Share to Reach eBay Sellers?   Would You Pay 20% Rev-Share to Reach eBay Sellers?

by: o.c.d.collectibles

Wed Apr 1 14:26:09 2009

This company clearly has set a disastrous course for themselves purposefully. The Directors and CEO's never do anything that doesn't benefit them in the long run.

They (the BOD's and the Management) have plans, and no one but themselves are included. They will not let themselves end up with the same fate as the AIG company or the Automobile Manufacturers. They will get away with their parachutes, and they will be just fine!

The plan is set for them to tear up the company.. then leave! This is just my theory, but I haven't been wrong yet.. (I predicted many of the changes that occurred so far!)

Would You Pay 20% Rev-Share to Reach eBay Sellers?   Would You Pay 20% Rev-Share to Reach eBay Sellers?

by: ebay=penny stock

Wed Apr 1 14:28:59 2009

Isn't that like throwing good money after bad.  Only morons would spend more money on a dying dinosaur like fleecebay.

Would You Pay 20% Rev-Share to Reach eBay Sellers?   Would You Pay 20% Rev-Share to Reach eBay Sellers?

by: Herb the Ebay tool, San Jose, CA

Wed Apr 1 14:35:12 2009

I wouldn't waste my money on this junk, anyway thanks to best match, my sales there are so light now, I have no need for selling manager. Why don't you just Die already, Ebay.

Would You Pay 20% Rev-Share to Reach eBay Sellers?   Would You Pay 20% Rev-Share to Reach eBay Sellers?

by: ebaysucks

Wed Apr 1 15:05:36 2009

Now now all you eBay haters.....Seriously you don't think this is a good program??  I mean eBay has introduced excellent programs for it's sellers in the past to enhance their selling experience.  Here are a few fine examples:

#1) Removing the ability for sellers to leave Negative feedbacks granting buyers 100% feedback no matter what they do or don't do.

#2) Safeharbor's feedback program that allows negative feedback removal for a mere $20.00 fee per negative feedback that they attempt to remove.

#3) Numerous fee reductions to sellers that presented as such that actually increases the fees by up to 60% in some cases.

#4) The finest email response times that rival pidgeon carrier service.

#5) SNP that puts all sellers in check even the ones with 100% feedback ratings.

#6) Threatening messages that scare sellers into offering "free shipping".

#7) Threatening messages that scare sellers into only offering Paypal as their only form of payment to accept.

#8) A revised "best match" upgrade that makes your listings almost invisible.

#9) Allowing 3rd party offsite product advertisement that entices buyers to shop elsewhere under keyword searches.

#10) Numerous listing fee discount sales that usually don't apply in categories that most sellers sell in.

#11) Working with their best partner Paypal to make sure sellers don't spend their hard earned money foolishly by holding their funds for up to 21 days.

#12) Working once again with Paypal to ensure that even if a seller has tracking information on domestic orders under #$250.00 that funds still are extracted from sellers accounts if a buyer files a chargeback claim.

#13) The finest execs on board money can buy that makes the North Korean government look like a democracy.

I mean with so much that eBay has done for it's sellers I can't understand why so many sellers are up in arms all the time.....Sheeesh!!

Would You Pay 20% Rev-Share to Reach eBay Sellers?   Would You Pay 20% Rev-Share to Reach eBay Sellers?

This user has validated their user name. by: Ina

Wed Apr 1 17:34:44 2009

Will vendors really spend time to develop a full-featured version of their existing tools for Selling Manager Applications? Will vendors really spend time/money to develop full-featured new apps? Wouldn't it make sense for developers to create applications that are helpful to sellers, but are not full, robust time-intensive apps?

On Facebook, there are lots of third-party applications that help get developer's brand in front of users, but aren't full-featured services.

Would You Pay 20% Rev-Share to Reach eBay Sellers?   Would You Pay 20% Rev-Share to Reach eBay Sellers?

by: Quantity Manager

Wed Apr 1 21:05:54 2009

So much negativity on this one but this really is a good thing.  One of the few truly good things eBay has done in years.

Would You Pay 20% Rev-Share to Reach eBay Sellers?   Would You Pay 20% Rev-Share to Reach eBay Sellers?

This user has validated their user name. by: Ina

Wed Apr 1 21:44:18 2009

Quantity Manager, would love it if you would elaborate. I can see the positives - the 20% covers the marketing and payment processing, but I have spoken to plenty of developers who've had bad experiences working with eBay.

I hope developers who are excited about this will share with us why, and how sellers can ultimately benefit.

Would You Pay 20% Rev-Share to Reach eBay Sellers?   Would You Pay 20% Rev-Share to Reach eBay Sellers?

by: Not Quantity, quality

Wed Apr 1 22:48:48 2009

See the problem is this junk is used only by corporate sellers & drop shippers that list JUNK. Don Ho figures to replace quality sellers with cruddy china poisoned goods & drop shippers all competing to lose the least money. 3rd party developers, don't waste your time on Ebay, it's over. You'll be better off developing your own programs & creating a better auction site elsewhere. Now's your chance, the sellers are angry & looking for better venues, so why waste your time trying to cater to greedbay. Soon, all that will be left there are Doggy diamonds, and they pay no fees to list, so I'm sure you will be negotiated right out of your profits anyway.

Would You Pay 20% Rev-Share to Reach eBay Sellers?   Would You Pay 20% Rev-Share to Reach eBay Sellers?

by: Joe

Thu Apr 2 09:08:38 2009

Just more glitch filled apps to waste more time, an exhorbitant fee to drain profits that barely exist for eBay sellers today. Learn how to direct buyers to your website from your ebay listings, it's very profitable and it does not require rocket science. If Buy and the others can do it ...so can you.. just not so openly...and of course, without eBays blessings.

Would You Pay 20% Rev-Share to Reach eBay Sellers?   Would You Pay 20% Rev-Share to Reach eBay Sellers?

This user has validated their user name. by: Bob

Thu Apr 2 09:35:03 2009

Well, it's better than nothing.  Remember when you had to pay eBay to be a developer?

Would You Pay 20% Rev-Share to Reach eBay Sellers?   Would You Pay 20% Rev-Share to Reach eBay Sellers?

by: Cat

Thu Apr 2 09:50:30 2009

''...a streamlined and trusted site experience...''

Precious.

Would You Pay 20% Rev-Share to Reach eBay Sellers?   Would You Pay 20% Rev-Share to Reach eBay Sellers?

This user has validated their user name. by: Ina

Thu Apr 2 10:41:26 2009

Bob, I do remember. eBay eliminated developer fees in late 2005. At the time, ChannelAdvisor estimated it had been paying eBay well over $50,000/month in API fees. While eliminating those fees, eBay still charged for live technical help ($75 per hour or $250 for 4 hours) - not sure what it is now.

Would You Pay 20% Rev-Share to Reach eBay Sellers?   Would You Pay 20% Rev-Share to Reach eBay Sellers?

by: Henrietta

Thu Apr 2 23:42:12 2009

Either I am seriously confused (always a possibility) or very few respondents have understood the question.

As I understand it, if I create an application that is of actual benefit to eBay sellers I would pay eBay 20% of whatever subscription fee I charge sellers to use the application.

That would be a bargain compared to the almost 30% I paid eBay Inc (including PayPal) on my low GSV items.

However, he who would sup with the devil needs a long spoon or he will get his fingers burnt.

Would You Pay 20% Rev-Share to Reach eBay Sellers?   Would You Pay 20% Rev-Share to Reach eBay Sellers?

by: Daddy Bear Guff, seller advocate

Fri Apr 3 00:24:30 2009

And I'm sure they will force the programmers to cut better deals for the Doggy Diamonds, who are the only ones that need this kind of junk to flood ebay with more chinese poison.

Would You Pay 20% Rev-Share to Reach eBay Sellers?   Would You Pay 20% Rev-Share to Reach eBay Sellers?

by: Nonsense

Fri Apr 3 04:30:06 2009

"More than 87,000 third party developers have already built more than 13,000 live applications that consume eBay’s Web services."

No wonder the site gets slower and slower by the month. No matter how fast your machine is or what your internet speed is, when it comes to ebay, it's always horribly slow.  No amount of tracking cookie/cache clearing helps.

If Google's Shopping page can return thousands of results in a fraction of a second, surely ebay could do better.
Here's an example of a Google Shopping search.
Results 1 - 10 of about 18,189 for (search term removed). (0.26 seconds)

Good luck to the Developers. The more junk they integrate, the more people flee to the faster websites.

Would You Pay 20% Rev-Share to Reach eBay Sellers?   Would You Pay 20% Rev-Share to Reach eBay Sellers?

This user has validated their user name. by: Ming the Merciless

Fri Apr 3 12:40:45 2009

This is exactly two days late.

Web 2.0 Expo: eBay Tells Developers to Embrace Making Money

"During a keynote speech Wednesday, eBay CTO Mark Carges told an audience filled with Internet start-ups that “nothing matters more than getting paid for the hard work that you do.” EBay knows a thing or two about making money, he said..."

http://snurl.com/f5m7

There are a lot of things ebay knows a thing or two about, but making money these days isn't among them.

These days what ebay knows very well is how to shaft their customers 25 ways to Sunday, make buying and selling as difficult, slow, and cumbersome as possible, and make the worst possible business decisions.

Death to ebay corp. in 2009.
NEG MEG WHITMAN in 2010.

Would You Pay 20% Rev-Share to Reach eBay Sellers?   Would You Pay 20% Rev-Share to Reach eBay Sellers?

by: Peter Leeflang / LEEFLANG ARCHIVES CORP.

Fri Apr 3 19:04:09 2009

Paying 20% of our revenue for zero added value? I don't think so.

There is no 20% extra sales projected with this new cost nor an equal savings in expenses, nor could there be. Considering the extra investment that it would require from sellers in time and money, such tools would have to produce at least 30%+ in revenue or an equal amount in savings. Fat chance.

When will Ebay understand that it has to offer VALUE if it wants my dollars?

Would You Pay 20% Rev-Share to Reach eBay Sellers?   Would You Pay 20% Rev-Share to Reach eBay Sellers?

by: exdwh

Fri Apr 24 00:16:36 2009

I think some people are confused about the 20%. The royalty is paid by the developer out of his subscription fee. So, if I charge $10/month for my application, eBay gets $2 for their trouble. It's not 20% of the seller's gross. I anticipate many trivial low-cost apps. Hopefully, eBay will weed-out the junk.

--David

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