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The AuctionBytes Blog has been giving a voice to online merchants since its launch in 2005. Named one of the world's top 30 blogs in 2008 by "Blogging Heroes." Weigh in with your thoughts on the joys and pitfalls of selling online.
You don't have to pay commission fees on eBay if you sell certain sneakers over $100 that go through its sneaker authentication program. However, a seller who uses the service noticed the terms have changed to raise the threshold $150.
As he explained in his letter, he noticed the change in the verbiage on April 1st. "All the sellers that think now that they sell an item for 100 to 149.99 and are not going to pay any fees on those items are going to be in for a surprise when they are charged and once again no announcement to the change that I could find," he wrote. (The full letter was published to the EcommerceBytes Letters to the Editor blog.)
As recently as March 27, 2021, the terms and conditions for the sneaker authentication program stated sellers selling certain brands, which it listed, qualified for the program if they sold for "$100 + in new condition or $300 + pre-owned, exclusive of tax and shipping."
The terms now state (on April 2, 2021) that eligible sneakers must sell for "$150 + in new condition or $300 + pre-owned, exclusive of tax and shipping."
The reader also pointed out that he subsequently discovered eBay had not changed the verbiage on the page describing its fee structure. We found this page of FAQs about the sneakers program had not changed - it still reads, "Sellers pay no insertion fees on eligible sneakers when the starting price of the item is $100 or more, not including shipping, handling, taxes, or fees."
eBay originally announced the Sneaker Authentication program on October 12 on the eBay corporate blog.
So what's the point of not charging fees on an online marketplace? In a post on February 3, 2021, eBay executive Jordan Sweetnam said $100+ sneaker sales had tripled in the fourth quarter of 2020, and "more importantly these categories actually lifted sales in other areas. For example, the average customer who purchased a pair of $100+ sneakers went on to spend a total of $2500 on eBay overall - with 80% of that spend in categories outside of sneakers."
Sweetnam said, "It's this sort of unique, cross-category shopping opportunity that we intend to translate into more buyers, more opportunities and more sales for you."
If you've used eBay's authentication program in sneakers (or luxury watches), let us know - from a buyer or seller perspective.
What do you think of eBay's authentication programs?
Here's what's going on - eBay's zero seller-fees and ''FREE'' authentication (eBay-paid, meaning every other category seller is paying for it) has resulted in a massive surge of sneaker sales (unsurprisingly), as eBay tries to claw-back it's massive category loss to StockX under Wenig's neglectful tenure.
As a result, authentication delays (and errors) are being reported, with many buyers saying they'd simply rather skip authentication (presumably from reputable sellers) than suffer massive transit delays.
eBay's sneaky-sneaker threshold increase to $150 is primarily a capacity planning mechanism to reduce bottlenecks and presumably get caught-up while eBay scrambles to increase authentication depots.
It's important to note that in February Iannone told analysts (in response to a Q from KeyBanc's Ed Yruma):
''In terms of the authentication, we've ramped up the amount of authenticating we're dealing to NOW EVERY SNEAKER OVER $100 GOING THROUGH THE AUTHENTICATION platforms and we're seeing great response and great operations there...SO CONSUMERS ARE GETTING THEIR SNEAKERS REALLY QUICKLY AND THE AUTHENTICATION PROCESS IS WORKING.'' - Jamie Iannone, Feb 3, 2021
This appears to be a significant material misrepresentation.
Seller Unearths Inconsistent eBay Fees
by: Rexford
Fri Apr 2 14:48:42 2021
How eBay gets their kicks. Pun intended.
Seller Unearths Inconsistent eBay Fees
by: RKTOYS
Sat Apr 3 14:00:56 2021
Uh oh, somebody didn't do the needful...
Seller Unearths Inconsistent eBay Fees
by: Vigilant Eye On eBay
Sun Apr 4 18:05:27 2021
The threshold change probably has a lot to do with eBay's exclusive partnership with three ''sneakerhead'' sisters known as ''The Chicks with Kicks'', who are selling a portion of their large, 6,000+ piece collection (i.e, over 2,200 pairs) of rare and limited edition Adidas, Jordans, and Reebok sneakers, which may fetch over one million dollars, directly through the venue.
@Vigilant, I visited the Chicks Ebay store.....NOT a lot of bids. On one page I counted 9 bids.
Seller Unearths Inconsistent eBay Fees
by: Vigilant Eye On eBay
Mon Apr 5 09:46:37 2021
@Chicago48
The deals with sneakerheads appear to be focused towards site promotion and publicity, rather than the short-term profits that can be derived from the immediate sales of high-end sneakers.
It was previously stated by eBay executives that the buyers of high-end sneakers tend to purchase a lot of additional products from categories that are not directly related to athletic shoes.
''On March 8, eBay launched an initiative for female sneakerheads and announced a collaboration with apparel brand Playa Society to sell merchandise to celebrate the female sneakerhead community.''
Apparently, eBay has been working on a long-term strategy to combat the loss of sales and sellers of vintage products that really don't appeal to Millennials or Zoomers (aka Generation Z or Gen Z), who are set to dominate the marketplace as both buyers and sellers in the very near future.
While the items that I sell are primarily purchased by male, Baby Boomers, in my opinion, if one is seeking future long-term retail growth potential, being inclusive (which means marketing products that appeal to minority groups, younger buyers, and women) is a very sound business strategy.
Seller Unearths Inconsistent eBay Fees
by: Chicago48
Mon Apr 5 15:50:01 2021
I don't "get" the sneaker economy. Paying thousands of dollars for shoes, I just don't see it. Most of it isn't even leather. But I don't "get" bitcoin either.
Seller Unearths Inconsistent eBay Fees
by: Vigilant Eye On eBay
Mon Apr 5 17:42:52 2021
@Chicago48
Re: ''I don't ''get'' the sneaker economy. Paying thousands of dollars for shoes, I just don't see it. Most of it isn't even leather. But I don't ''get'' bitcoin either.''
+1
Typically uninterested in and often woefully lacking any knowledge of past history, Millenials and Zoomers are a very bizarre breed whose expenditures and investments are even stranger.
Examining what is currently known about the recent GameStop stock trading frenzy that was fueled by users of the Redddit social news platform can give one a bit of insight into the mindsets of Millenials and older Zoomers.
A Google search revealed the following Reddit site demographics.
As of February 2019:
22% of Reddit users are from the 18–29 year old age group.
14% of Reddit users are from the 30–49 year old age group.
6% of Reddit users are from the 50–64 year old age group.
1% of Reddit users are from the 65+ year old age group.
United States Reddit use is is 15% male and 8% female.
As of September 2020, 49.69% of Reddit users were from the United States.
15% of Reddit users have a degree or college education.
Reddit is the 7th most visited site in the United States.
Atypical for most Baby Boomers, resulting in both positive and negative outcomes, social media and social news site content has a phenomenal impact on the actions of Millenials and Zoomers.
Seller Unearths Inconsistent eBay Fees
by: VaGent
Thu Apr 8 07:36:43 2021
Just curious... if: "22% of Reddit users are from the 18–29 year old age group. 14% of Reddit users are from the 30–49 year old age group. 6% of Reddit users are from the 50–64 year old age group. 1% of Reddit users are from the 65+ year old age group."
Does that mean that the other 55% are below 18?
And if: "United States Reddit use is is 15% male and 8% female."
What gender are the other 77%?
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The AuctionBytes Blog has been giving a voice to online merchants since its launch in 2005. Named one of the world's top 30 blogs in 2008 by "Blogging Heroes." Weigh in with your thoughts on the joys and pitfalls of selling online.
Seller Unearths Inconsistent eBay Fees
by: unsuck 
by: Rexford 
by: RKTOYS 