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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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.

Sat Aug 4 17:28:00 2018

@Ric

Your correct, and in fact at etsy when you pay for promoted listings they cutoff your free included google ads, sellers go bankrupt because 80% of the traffic comes from google,, and the promoted listing are only within etsy

people are crazy to put all their eggs in these venues, they are just nuts

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This user has validated their user name. by: RKTOYS

Sat Aug 4 18:12:32 2018

LOL, good luck finding a CIO/CTO that knows anything about programming, let alone a CEO.

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This user has validated their user name. by: CanBrit

Sat Aug 4 18:52:04 2018

Number 6

I'd be watching those shares very, very closely. eBay is losing sellers faster than gaining them. There is not any possibility that sellers can shore up the disasters of this year. Even with his payments plan and other fantastical ideas, he is just bleeding the site dry while he sucks up his salary. A delusional non visionary like Wenig will carry on into the night and probably sucker some other company with his wit and charm for a job once this one ends.

After that fails he will retire and join boards of other companies until they can't stand to listen to him anymore. He is one steaming pile.

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

Sat Aug 4 18:54:17 2018

RKTOYS

Go check the background on Google and Microsoft's CEO's, they are both software engineers.

You must be thinking eBay's Board of Directors is too inept to hire someone who is qualified to be the next CEO of eBay.

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This user has validated their user name. by: CanBrit

Sat Aug 4 18:58:52 2018

Omidyar was a tech. You'd think he could have somewhat of a voice, but I'm guessing that even though eBay was his baby, he doesn't care anymore. Maybe all those gagillion's of dollars don't mean anything anymore to him. Rather dismaying when one would think that something you started, that became such a success, doesn't merit saving.  

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

Sat Aug 4 19:00:32 2018

Here you go RK.......

  https://careers.google.com/jobs#!t=jo&jid=/google/software-engineer-go
ogle-building-41-1600-amphitheatre-6540009&f=true&

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by: DingDong This user has validated their user name.

Sat Aug 4 19:04:22 2018

I think that Omidyar lost all his clout.

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by: Grady This user has validated their user name.

Sat Aug 4 19:30:03 2018

Omidyar doesn't care about Feebay. He has made various public comments about never intending to run a big site, it was just a hobby that grew too big for him. He is more interested in making speeches about social justice, taking selfies in Congo with AIDS babies etc.  

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This user has validated their user name. by: toolguy

Sat Aug 4 19:31:21 2018

Off Topic

Hot summer tip

Leave an ice chest on your porch with a cold drink inside and put a note on top that says:

Cold Drink for Delivery Person

Your mailman will become your best friend.

Today is the 21st straight day over 100 degrees here in the High Desert in So. California

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This user has validated their user name. by: FidoMaster
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Sat Aug 4 19:43:24 2018

Omidyar is too busy teaching *other* tech companies how to be ETHICAL:

~~~~~~~~~~~~~~~~~~~~~~
Barron's
Aug. 3, 2018

EBAY FOUNDER PIERRE OMIDYAR’S GROUP WANTS TO HELP PREVENT THE NEXT FACEBOOK SCANDAL

"...some free help became available to the [tech] industry this week when a team of Silicon Valley ethicists unveiled a toolkit they hope will help tech firms avoid ethical debacles.

The new website, which its creators have dubbed the Ethics in Technology Practice, is filled with advice and training materials.

It was funded by Omidyar Network, a $1 billion impact investment firm in Santa Clara, Calif., started in 2004 by eBay founder Pierre Omidyar and his wife Pam.  Concerned about technology's downside, as well as its upside, Omidyar Network commissioned the suite of materials from Santa Clara University philosophy professor Shannon Vallor and technology ethics experts at the school's Markkula Center for Applied Ethics.

eBay (EBAY) was born amid the utopian early days of the Internet when you could trust and do business with strangers, says Paula Goldman, who leads Omidyar Network's new Tech and Society Solutions Lab. "We thought technology would lead to all sorts of good things for people," she recalls. "But the past few years have been humbling, as these technologies have caused unintended consequences."

The ethics toolkit teaches engineers to anticipate the social impact of a software or hardware as part of its design. Case studies illustrate successes, as well as failures  — such as surveillance technology that spies upon or discriminates against segments of society.  Some of the materials were pilot tested at a unit of Alphabet (GOOGL).

Other projects funded by Omidyar Network are developing tools to measure the social health of an online community, as well as an ethics curriculum for computer science students.

Tech workers won't put sustained effort into ethical considerations if their employers won't back them. "Without the necessary incentive structures," the new site says, "all the 'good intentions' in the world won't make much of a difference in the company's products or its employees' success in ethical practice."

~~~~~~~~~~~~~~~~~

Can't make this **** up!

Omidyar, heal thyself.

Copy-Paste Linky➽ http://bit.ly/2OcZ7BF

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by: ebayout This user has validated their user name.

Sat Aug 4 20:11:08 2018

Is there a 12 Step Program for delusional CEOs?

Wenig is not a candidate...he'd never admit he has a problem.
Admitting he's pissed is as far as he goes.

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by: deejae137 This user has validated their user name.

Sat Aug 4 20:28:18 2018

I have said it before and I will say it again, small sellers "were" very good and loyal buyers.  With each and every bad turn (which is practically everything eBay does these days), eBay has placed so much pressure, distressed and frustrated small sellers and many of them no longer buy off eBay out of sheer principle (I know I am one of those seller/buyers).  The morale of the eBay community is at an all time low (like eBay's stock) The interchange between buying and selling was huge back in the good ole days and people where loyal with their shopping on eBay.  Now, all eBay produces in buyers are low ballers on the totem pole, cheap China goods and those that look to scam eBay sellers.  eBay has NO LOYALTY to their brand and in fact has created the opposite reaction, aversion to buying so as not to give eBay one red cent.  Even in new goods, eBay is not competitive in pricing.  Many times I find Amazon better priced in what I am looking for new, so what does eBay think it will gain by getting sellers to pay even more for a platform becoming more and more irrelevant?  And what will the sellers do if they have to pay even more just to eke out a few sales? They will up their prices to incorporate that money making the seller even more uncompetitive with other places, like Amazon.  Talk about one lousy business model.  It is hard to believe ANYONE in their right mind would agree to pay more with a platform that is failing!

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This user has validated their user name. by: Number 6

Sat Aug 4 23:37:29 2018

CanBrit
'Wenig will carry on into the night and probably sucker some other company with his wit and charm for a job once this one ends.'

I believe he has already suckered GM into giving him a lucrative gig of some sort - heaven only knows what'll happen to their cars and trucks once he starts installing is defective AI and 'disruptive technology' into them.    

You'll be toodling along the freeway and multiple 'promoted ads' for cheap Chinese garbage will start appearing on your dashboard alongside promotions for other car manufacturers.

These people aren't 'businessmen/women' - they are leeches who turn up once a company is doing ok or peaking - they never start companies, run companies from scratch, they just show up with their bits of paper and Wall Street word salad BS from top named business schools, and their alumni from the same schools give them top management jobs and pass the hat along to their buddies (Donahue to Wenig).  There's more of the than there are good companies to get jobs at, so they keep it to themselves like a cosy little club.

Wenig couldn't run a profitable lemonade stand if you gave him all the ingredients, cups and straws and the most lucrative pitch on the street.

They don't care about the companies they are in charge of, all they seek to do is to make as much money out of it for themelves as fast as they can in shares and bonuses, and the always gobsmacking golden parachute sums even if they are fired.

What puzzles me is why so many shareholders are so content to see so little real value from their investments for so long - eBay's share price has been propped up via share buybacks for a long time.  

The more Wenig tries to extract the last ounce of blood from the sellers it has left, the less they'll list and the more they'll give up entirely.  Replacing reliable sellers with new ones is not as easy-an option as it was even a few years ago - there are dozens of venues coming and going these days, social media, easy to start stores like Shopify - I suspect a lot of sellers on ebay just can't get it together or face the fact they have to start up again elsewhere or create their own websites.  That's understandable, but shortly they will when they have to pay even more to eBay to sell even less.

I suspect the 1% have so much money these days they really haven't got anything worthwhile, well-run, genuinely profitable companies to invest in anymore...there's more investment money chasing less and less to invest in so its all about quick profit from IPOs and buy/sell all the time, no Warren Buffett type long-term strategies, he probably owns all the shares anyone would want by now anyway.

How mad is it that eBay is even valued at $33 a share these days when it should be about $15 or less?  Well, Tesla is $348.15 per share with a never-gonna-make-a-profit Earnings Per Share (EPS) of $ -16.12, whereas Ford Motor Co. is $10.03 per share and has an Earnings Per Share of $1.68.

Go figure.











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

Sat Aug 4 23:50:17 2018

I just went to eBay to log in, they can't even serve the web page to me, sales are dead also.

So why would anyone want to pay more money to advertise on eBay, a dead venue, I just reactivated my Amazon selling account today and will be moving most future listings there.

I am not going to pay the dual morons running eBay (Devin and Cutler the new stooge) to relist unsold items over and over.

Cutler the new stooge seems to think that sellers are going to pay him to keep relisting unsold items on the 'New eBay Experience' marketplace forever.

I have news for you morons, Amazon is going to take the sellers away from you, they have buyers and traffic, something you idiots know nothing about.

So keep trying to sell ads in your tumbleweed dead marketplace.

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

by: pace306 This user has validated their user name.

Sat Aug 4 23:54:39 2018

Seller Ads = desperation

As the pool of buyers and sellers starts to shrink, eBay "still" needs to make its fake numbers, so it comes up with either another fake stick or carrot to lure sellers into spending more for the same (or less).

Like any good Mafia DON, Wenig knows how this game is played. You get the guy to borrow money from you, you put a vig on him to make him pay (usually more then he can), you take all his merchandise (leaving him to owe manufacturers), then burn the place down and split the insurance.

THAT play is what is at work here on eBay.

eBay knows quite well that smaller sellers "need them", as sometimes Amazon just isnt a good fit. Once they "have you", you cant leave. You need to pay your bills, feed your family etc - and he knows that fact well.

The extra %40 vig on a sellers returns issue is %100 fake. Not only is it decided by eBay, theres no "real" metrics, no appeals, no nothing - eBay says so, to therefore it is.

Theres no reason to buy ANY ad space on eBay - since its what you are ALREADY paying for with your FVFs.

Like a parking space in NYC, you are paying for the same thing over and over again and MAYBE - you will actually get that service ... if they want to since the TOS says that they dont have to.

eBay knows you wont sue them, they bet you wont leave and even if you do - you dont have the "brand recognition" they do and so you will be a failure - NOT bets Id make any day.

Wall street isnt yet prepared to have another Enron with eBay. Its still to safe and institutional buyers love the stock - it makes them feel edgy and "so anti Amazon".

The numbers eBay gives them are all made up - theres no proof of any of it - since eBay owns, and sells nothing. Its simple costs (payables) va income. Its one minus the other and those numbers are what ever eBay wants them to be.

eBay open was an unmitigated disaster, with the shmoes on Youtube spouting all kinds of crap. They all magically went to eBay open, yet buy goods from flea markets and make $5 on them. They arent "real businesses" buying form distributors and makers, yet they magically have all the answers and nothing eBay said was "so bad". At least I can turn THEM off.

I used to look forward to the weekend - since thats where I would make a bulk of my sales (people getting paid Thurs/Fri and spending some of it on Sat/Sun) but eBay has killed that too.

eBay will end up being most famous for being the one company who specialized in turning businesses into hobbys - and thats the REAL crime here.

It took alot for eBay to turn TOOL against them. I and everyone else here said the SAME thing ... "one day it will be YOUR turn" ... and that day came. Im sorry it came so soon for you - it came for me almost a yr ago - I had to go back to a 8-5 job to pay bills.

Its going to be a ROUGH 3rd/4th quarter on eBay with every seller fighting for what little is left of eBays buying base, and the rest (of the buyers) just going to Amazon.

What a shame that such a great company has gone to sh_t.

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

Sun Aug 5 00:04:02 2018

Pace, you got to love the ad that is running at the top of the blog right now.

BigCommerce + PayPal — a partnership that truly adds up

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by: ebayout This user has validated their user name.

Sun Aug 5 00:35:31 2018

@ Number 6
There was a 1M share transaction at the closing bell on Friday.
No doubt another buyback.
Smart people...they could have bought for $500K less on Wed. for $33.09

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

Sun Aug 5 02:57:15 2018

Ebay is NOT a "Listable" stock.
The criteria for being on the stock market has been bastardized.
Etsy is NOT a listable stock.
To qualify as an eligible stock, the business MUST, itself, produce product.
McDonalds, Ford, Pork Bellies, etc......
Ebay, Etsy, and the like, produce invisible binary vapor.
Worthless.

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This user has validated their user name. by: Number 6

Sun Aug 5 11:49:55 2018

pace306
"eBay will end up being most famous for being the one company who specialized in turning businesses into hobbys"

Brilliant - the irony is that's how most sellers started on eBay as hobbyists, selling some unwanted items and odd stuff - they made more money than it cost to list them and they thought, 'Wow, if I knuckle down and do this seriously I could make a small business out of this, maybe be lucky enough to quit the day job I dislike so much (kinda wish I still had that drab day job now - far less hassle)."

And for a while many of us achieved that.

But slowly and surely for no real reason, eBay raised ridiculous barriers and hurdles against sellers so that they can take an extra cut from them.

Some of their hurdles didn't even make any sense, not even from GreedBay's perspective - what was 'selling limits' all about?  Stopping sellers from selling more than a certain amount (thus depriving eBay of listing and FVS) - I never understood that one.

Imposing draconian rules about what shape and size photos had to be - borders, no borders...who cares, so long as the item sold and everyone made their slice...but not GreedBay, oh no, they have to micromanage every aspect of everything a seller does with, and here's where the downfall started, absolutely no knowledge of what selling on GreedBay actually entails.  

And we, a once medium sized full-time seller are slowly relegating eBay to a hobbyist/occasional sale venue with the least amount of effort required and lowest possible expenditure involved.  Instead of going 'up' in size we go down each year now, and as soon as our downsized 1,000 'free' listings $60 pcm store is up [not turning enough to justify $60 pcm - HOW PATHETIC is that these days?] we'll either downsize (once again) to the lower level store, or just not bother and pay 30 cents a listing for only items we consider 'dead certs' that'll sell in the one-time only listing cost period of 30 days - as there are very few items in our category that sell that quickly, it'll only be a handful of listings a month at best.

We shan't quit eBay entirely - they have their uses, but they're not going to be using us any longer as this year progresses.

I have a feeling the only way to stand a chance of beating them at their own game, once they plaster your near-invisible listings with diverting links to your competitors and ads for plumbers and insurance and 'free return' requirements, is to have for sale ONLY items of medium price [can't risk expensive things on eBay now as we all know, but the $30-50 type price range doesn't seem to generate too many liar buyers and SNAD empty box returns] of interest/rarity to more than one person who will still take the time to find them, despite eBay's best efforts to send them elsewhere via the worse, and I mean the VERY WORSE search engine on the internet.

If you don't throw out a few crumbs from your breakfast toast and put some seeds in the bird feeder and fresh water in the back garden you'll not get any birds visiting - that's where GreedBay is right now - the birds just go to someone else's garden across the street.  And GreedBay's answer to the problem is to throw out no bread crumbs at all and no bird seed and imagine that'll punish the birds into returning.

As everyone here observes, Greedbay sellers usually were also buyers, but, like everyone else, I only buy something on GreedBay these days when it is not available anywhere else, and that's not often nowadays - As a seller with ever lower sales, I'll even pay a bit more elsewhere to deprive GreedBay of the sale.

eBay's sellers are it's ONLY customers -  as many are/were buyers as well, a diminishing revenue source on both fronts.  That's pretty unique in online business, a seller who is also a buyer, two potential revenues from one unit, you'd think they'd court them like fawning flunkies in the court of the crimson king - but not eBay, we're all 'noise' so can be tossed away to other all the other sites that offer similar services.  eBay's about to achieve its intetion of having NO 'noise' on the site, and boy, is it getting quieter.

The End
"Ebay, Etsy, and the like, produce invisible binary vapor."

Love it - sounds like a great name for an indie rock band, Invisible Binary Vapor.




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This user has validated their user name. by: Number 6
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Sun Aug 5 12:12:58 2018

https://www.youtube.com/watch?v=QmFYHmGkfxw

eBay management meeting to find new ways to get fees from sellers...

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