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.
"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.
"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??"
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.