Ina Steiner EcommerceBytes Blog
News and insight focusing on ecommerce.
by Ina Steiner, Editor of EcommerceBytes.com
Fri Aug 3 2018 16:49:55

eBay Looks to Seller Ad Fees for Revenue Growth

By: Ina Steiner

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eBay CEO Devin Wenig told Wall Street analysts on July 18th that he sees advertising one of eBay's most significant mid-term opportunities (the other is payments) - particularly Promoted Listing Ads. There are over 300,000 sellers promoting over 150 million listings, he said, "leading to revenue growth in excess of 150%." 

But that's currently a tiny percentage of revenue - total Marketplace revenue growth was 9% (or 6% on an FX-Neutral basis. Here's how eBay is looking to increase its advertising revenue.

2) Increase the number of sellers who advertise.
One obvious way to boost ad revenue is to increase the number of sellers who advertise. eBay is now targeting "consumer sellers" with a dumbed-down version of its seller ad program - see today's news story about eBay Promoted Listings Lite.

eBay also has some room to grow the program geographically - Promoted Listings Ads are currently available to all active eBay Stores subscribers in the US, Canada, UK, Germany, and Australia, and FRITES (France, Italy, and Spain). In the US, the program also available to Top Rated Sellers.

Moving to a catalog approach, as eBay is doing, may also help boost adoption. When sellers must compete for the Buy Box on a single Product page, they may be more inclined to consider advertising as a way to get visibility for their items.

2) Increase ad fees.
Sellers indicate how much they are willing to pay for Promoted Listings as a percentage of the selling price. eBay used to limit the rates at 20% of the selling price, but now it allows sellers to pay up to 100% of the selling price. 

That's obviously not a good idea, since any seller who moves the lever to 100% would be in effect paying eBay to sell their items, since they must also pay a commission (Final Value Fee) and often pay insertion fees, not to mention all the other costs they incur.

But as greater numbers of sellers begin advertising, they will be likely to pay more for each ad as placement gets increasingly competitive. 

3) Increase ad inventory.
Ads are appearing in more places on eBay's site, and in December, eBay expanded the availability of PLAs to Motors Parts & Accessories.

eBay is also testing a new pay-per-click advertising program called Highline Search Ads. Invited sellers can run ads that appear at the top of search results; they pay whenever a shopper clicks on the ad. 

eBay is also going local with ads for services, starting in the UK, so sellers will have to compete for ad space with local service providers, such as plumbers and hairdressers.

The message to Wall Street is clear: eBay wants more money from sellers on its site through ad fees. It's up to sellers to determine if paying more fees to advertise their listings on eBay shows a positive return on their investment.

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Readers Comments

Perminate Link for eBay Looks to Seller Ad Fees for Revenue Growth   eBay Looks to Seller Ad Fees for Revenue Growth

by: eBay Shill Buster This user has validated their user name.

Fri Aug 3 17:04:39 2018

eBay and dummy Devin is looking for more fees from sellers because the idiot CEO can't read.

  https://community.ebay.com/t5/Selling/No-Sales-in-3-days/m-p/28814474#
M1262496

 Dead not NEARLY DEAD, No sales yet in August with over 1100 unique items for sale across all categories of merchandise except clothing. DOWN 60% last 31 days and 26% over last year at this time! 6 sales in the last 12 days! NEVER BEEN WORSE. Every buyer must have packed up and moved on with all the glitches and redirects in search or my stuff ain't being seen.

 He can't see that eBay has no real buyers any longer and that you can't keep asking sellers for more cash when eBay is not able to produce positive cash flow due to Devin's piss poor management of the marketplace  and his stupid ideas that have killed eBay.

Perminate Link for eBay Looks to Seller Ad Fees for Revenue Growth   eBay Looks to Seller Ad Fees for Revenue Growth

by: sasikat9 This user has validated their user name.

Fri Aug 3 17:23:37 2018

I look for an increase in FVF and listing fees come this Fall. Just another way for Fleecebay to fleece more people.

Perminate Link for eBay Looks to Seller Ad Fees for Revenue Growth   eBay Looks to Seller Ad Fees for Revenue Growth

by: thriftyone This user has validated their user name.

Fri Aug 3 17:24:21 2018

This is the true reason for not allowing us to run a sale until after the item has been listed for 14 days....

Perminate Link for eBay Looks to Seller Ad Fees for Revenue Growth   eBay Looks to Seller Ad Fees for Revenue Growth

by: I Must be Crazy This user has validated their user name.

Fri Aug 3 18:13:41 2018

So I suppose he is giving up on trying to improve the core business. This little more than an attempt to squeeze more out of the existing seller base. I am not sure how many active sellers there are on the site, but 300,000 using the program seems like it has not been well received. I could be completely wrong though.

Wenig is a failing executive. Granted he is better than his predecessor, but his strategy isn't working. ANYBODY can go in, cut staff and raise fees. Turning around a company that was left in the position of eBay after Donohoe takes REAL talent. He couldn't cut it at Reuters, and he isn't cutting it at eBay.

Perminate Link for eBay Looks to Seller Ad Fees for Revenue Growth   eBay Looks to Seller Ad Fees for Revenue Growth

by: eBay Shill Buster This user has validated their user name.

Fri Aug 3 18:24:27 2018

Don't lose hope on this loser, at eBay open he said there would be 500 million buyers on eBay soon, we are all going to be filthy rich, just give Devin more time to 'modernize the platform'.

Perminate Link for eBay Looks to Seller Ad Fees for Revenue Growth   eBay Looks to Seller Ad Fees for Revenue Growth

by: maxmad This user has validated their user name.

Fri Aug 3 18:34:19 2018

this guy should have been a comedian, at least he could have been good at something, too funny,

less buyers, less sales , glitches everywhere, failed advertising, low fidget spinner demand,

where is ebay going to get the money? where else,,,,,,,,,,,,,,,

S E L L E R S

ha ha ha ha ha ha ha ha ha haha ha ha ha ha



Perminate Link for eBay Looks to Seller Ad Fees for Revenue Growth   eBay Looks to Seller Ad Fees for Revenue Growth

by: eBay Shill Buster This user has validated their user name.

Fri Aug 3 18:51:47 2018

Cancel Store subscriptions, don't pay eBay to relist unsold items on their non-performing marketplace, do not pay for any value added services such as promoted listings or to advertise on eBay.

Sellers need to send a message to the Board of Directors that the tactics Devin has engaged in since he became CEO will not be tolerated, no more free money for Devin, we will not subsidise a dead marketplace, sorry Devin, every dog has it's day you your day has come.

Perminate Link for eBay Looks to Seller Ad Fees for Revenue Growth   eBay Looks to Seller Ad Fees for Revenue Growth

by: ebayout This user has validated their user name.

Fri Aug 3 19:22:28 2018

It's accepted fact that buyers in general don't read descriptions, especially since they don't even appear on iPhones. Why would they bother to read ads?
Ads on ebay are a distraction, not an attraction.
Once again, the fools at the top cannot differentiate causality and correlation.
If a seller runs an ad, how can he judge effectiveness given all the other variables?
Did someone buy because of the ad, or bought because of price without knowledge of the ad and so would have bought anyway despite the ad?

Perminate Link for eBay Looks to Seller Ad Fees for Revenue Growth   eBay Looks to Seller Ad Fees for Revenue Growth

This user has validated their user name. by: iheartjacksparrow

Fri Aug 3 19:46:23 2018

The entire article can be summed up by the wording in the last paragraph: "eBay wants more money from sellers."

Perminate Link for eBay Looks to Seller Ad Fees for Revenue Growth   eBay Looks to Seller Ad Fees for Revenue Growth

by: SANT1N1 This user has validated their user name.

Fri Aug 3 20:19:49 2018

How does these increasing pay for play schemes enhance the "buyer experience"??????

Perminate Link for eBay Looks to Seller Ad Fees for Revenue Growth   eBay Looks to Seller Ad Fees for Revenue Growth

by: Cleet This user has validated their user name.

Fri Aug 3 20:24:29 2018

Is this why store traffic lurches between meager, erratic and dead? Is eBay artificially starving sellers of traffic to force them to cut prices and buy promoted listings? Add to that a buy box feature and sellers will be on the ropes while eBay cackles.

Perminate Link for eBay Looks to Seller Ad Fees for Revenue Growth   eBay Looks to Seller Ad Fees for Revenue Growth

This user has validated their user name. by: toolguy

Fri Aug 3 20:27:01 2018

How about giving me something of value for my money?

I would be more then willing to pay .25 cents to add a video to my listings!

Devin is 100% in denial that I would pay 100% to sell my item. . .

Perminate Link for eBay Looks to Seller Ad Fees for Revenue Growth   eBay Looks to Seller Ad Fees for Revenue Growth

This user has validated their user name. by: RKTOYS

Fri Aug 3 20:48:56 2018

Devin Wenig is an imbecile, pure and simple.  How doesn't know anything and, like Steve Jobs said, why would anybody good work for somebody who doesn't know anything?

Perminate Link for eBay Looks to Seller Ad Fees for Revenue Growth   eBay Looks to Seller Ad Fees for Revenue Growth

by: maxmad This user has validated their user name.

Fri Aug 3 20:49:12 2018

as predicted, right on schedule, when all else fails, ebay "again" will take more from sellers, and their new payments plan scam will need to be implemented sooner then expected, they will need more, more, more, from sellers,

want to sell on ebay, just promote your listings Click the %100 button

Perminate Link for eBay Looks to Seller Ad Fees for Revenue Growth   eBay Looks to Seller Ad Fees for Revenue Growth

by: DingDong This user has validated their user name.

Fri Aug 3 21:06:28 2018

Will the 100% button be a big blue box just like the return box so that you accidently hit that button?

Perminate Link for eBay Looks to Seller Ad Fees for Revenue Growth   eBay Looks to Seller Ad Fees for Revenue Growth

by: Travelogue This user has validated their user name.

Fri Aug 3 22:18:51 2018

After reading this I only have one question...Is this guy for real?
Nineteen years on eBay and this would be the last straw! From January to July 2017 my sales are down 54% this year, my fees are now tripled and he wants more money?
DEVIN IS NOT A WELL MAN...

Perminate Link for eBay Looks to Seller Ad Fees for Revenue Growth   eBay Looks to Seller Ad Fees for Revenue Growth

by: eBay Shill Buster This user has validated their user name.

Fri Aug 3 22:32:16 2018

There are over 300,000 sellers promoting over 150 million listings, he said, "leading to revenue growth in excess of 150%

This greedy desperate dummy CEO is grasping at straws to show any kind of growth numbers.

My sales went from 1 dollar to 15 bucks, so I increased sales 15 times, Duh.

Perminate Link for eBay Looks to Seller Ad Fees for Revenue Growth   eBay Looks to Seller Ad Fees for Revenue Growth

by: Silver Ice King This user has validated their user name.

Fri Aug 3 22:37:10 2018

Lets see, Ebay as I remember has something like 25 million sellers and 300,000 of them use promoted listings.  So 1.2% of sellers use Promoted listings which means that Ebays Promoted Listings program is basically considered a flop, just like all the other programs that Wenig has tried.  

I don't think he if going to try and raise the fees with the fall sellers update because he already is going to be hitting sellers with a 4% FVF increase for all the returns that are above their peers numbers which you can't see anyway so anybody that gets returns at all could very well see this increase.  He is basically still trying to extort more money from sellers by threatening that their items will never be shown in the box unless they pay for promoted listings.  What the idiot can't seem to get through his head is that more and more sellers are moving their product to other sites where fees are lower and traffic seems to be growing while Ebay's traffic is decreasing quickly.  Buyers are tired of all the constant changes that Ebay keeps putting out and then they cannot find what they want at all so they go elsewhere.  I know it is happening in my category more and more and the prices are staying at the same amounts that Ebay was able to get for me, but the commission is a lot less or completely free.  Facebook groups are becoming more and more popular and starting to take a lot of business from Ebay and where the prices used to be 10-15% lower than Ebay now they are about the same because the buyers can find what they want and also communicate easily with the seller, unlike paranoid Ebay.

Ebay will never get another penny from me other than what I pay now or FVF for an item selling because the rest is no longer worth it.  The ONLY reason I have a store is for the free listings that come with it each month as Ebay has now made having a store worthless just like their stock is becoming.  

My thoughts every time I see something about increasing revenues or if you do something we recommend here is the increase you will see go back to this post on TheLayoffs.com by a supposed former Ebay employee:

eBay abuses the very people who pay their wages..
I quit working for eBay after sitting in long executive meetings, where management basically plotted ways to farm more and more money from Sellers, without any actual knowledge or research to show why they where doing it. They would 'create' market research which they would release to the public, yet it was completely false and made up only to support their hypotheses - which normally included making it more and more difficult for the account holders (sellers) to actually, well, sell. Many of us often were left perplexed by what they were trying to do, none of it made sense - destroy the account holders with ridiculous policies and charge them more for doing so? It literally gobsmacked me. That along with the fraud was the last straw for me, they used to a good, fun business, since the last five years, the new CEO's, havung never sold on eBay have single handedly destroyed it. I fear, that it was intentional, to basically short the stock. Who knows.

Whether that was written by a real employee (probably former executive) or an irritated Seller, it really seems to ring true with what most of us think and say when they spew out these numbers about how sales will increase 15% if you offer Free Returns, when in fact they don't even have that data available yet.  Plus even if they did have it, why would anybody depend on it since we already know that most of their data is messed up and incorrect anyway.  Garbage in equals garbage out now as much as it ever did.

Perminate Link for eBay Looks to Seller Ad Fees for Revenue Growth   eBay Looks to Seller Ad Fees for Revenue Growth

by: eBay Shill Buster This user has validated their user name.

Fri Aug 3 22:41:40 2018

eBay is a dead venue, Devin and Donahoe killed it long ago, over 6 years ago, the only hope is to get a CEO that understands web programming, Devin is a lawyer and a dumb one to boot.

There is no hope for a turn around with Devin Wenig as CEO, he must be fired for any hope to be restored to the seller community.

Perminate Link for eBay Looks to Seller Ad Fees for Revenue Growth   eBay Looks to Seller Ad Fees for Revenue Growth

by: eBay Shill Buster This user has validated their user name.

Fri Aug 3 23:02:21 2018

Cancel your eBay stores, open up on BigCommerce, spend ad money on Google versus paying eBay money to advertise, you will eliminate eBay from the commerce loop completely and you control your payments and returns.

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