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

Sponsored Link

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.

Comments (99) | Leave Comment | Permalink
Readers Comments

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

by: RL15 This user has validated their user name.

Sun Aug 5 18:07:19 2018

its nice to see many others wising up and getting off fleacebay.

there are other sites that are much better, then of course your own website. its not that hard to do.

every year on fleecebay my sales did increase. my best year was 2015.
my 2016 sales were down 52%, from 2015 my 2017 sales were down 76% from 2016

sell less, pay more. instead of paying anything to fleacebay, I bought into google ads, paid less, sold more.

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.

Mon Aug 6 02:52:24 2018

With sellers leaving, ebay is trying to recoup the lost fees by increasing the burden on the backs of those remaining.
Or, as they say in the slave ship galley...beatings will continue until morale improves.
I pity the smuck who stands up in a meeting and suggests lowering the FVF to 7% to ATTRACT new sellers...and KEEP existing ones.

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

by: Chicago48 This user has validated their user name.

Mon Aug 6 07:41:24 2018

They still haven't figure shy86^^T out.  Amazing.  Unless you are a hot seller (jewelry, diamonds, autos) who sells high-end products, it makes no sense to advertise on EBAY!  

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

by: epuise This user has validated their user name.

Mon Aug 6 09:23:39 2018

Sellers provide the goods... eBay needs to provide the advertising.
If Sellers are going to provide goods & then have to advertise...
there are free platforms to do that on.

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: Number 6

Mon Aug 6 09:50:58 2018

Pay per click and all these new online advertising models are the latest Madison Avenue type snake oil.

At least with snake oil you got some colored liquid in a glass jar with a label on it -


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.

Mon Aug 6 09:52:44 2018

Statistically speaking, there's no way that ebay could randomly choose so many execs who don't know the diff between vinegar and honey.

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.

Mon Aug 6 09:58:46 2018

Only a fool would pay eBay over 10% of their sales figures on an ongoing basis, the goal of management is to garner 50% or more of each dollar sold on eBay, the morons will stop at nothing to get there, inventing new schemes to fool gullible sellers.

Open up on BigCommerce, advertise on Google, simple, cut eBay out of the commerce loop, control your own payments and returns, get out before these criminals destroy your business, they have already ruined eBay.  

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

by: eastwestphoto This user has validated their user name.
Web Site

Mon Aug 6 10:01:04 2018

EBay is immoral and violating their own seller agreements.

They used the hammer of the Clarissa program (Donovan era) to down grade the seller with defects! Then make it impossible for a seller to actually sell, due to a grossly biased return policy favoring Buyers. Then the fees increase like crazy , because they downgraded you illegally to their rules!
        Then comes the extra charge's  just to be seen in an ad or search system they messed up to begin with. Its a total scam!  

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.

Mon Aug 6 10:07:06 2018

It's a joke, Devin likes to run his mouth on Stage at eBay open using works like, 'Velocity, moving Boxes", but the reality is you will not move boxes on his dead platform because the man is too inept to compete in the real world.

New marketplaces are taking the young customers, Poshmark, Offerup and all the rest have taken great share from eBay since they have platforms considered hip by young buyers.

eBay sellers putting faith in Devin and his stupid ideas are sailing on the Titanic.

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.

Mon Aug 6 10:10:26 2018

To Ina and David, please add a post editing feature to your blog, too many typos and misspellings that cab't be corrected with your current posting script.

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

by: 92Camaro This user has validated their user name.

Mon Aug 6 13:12:04 2018

Ebay changes the website and creates technical issues, blames it on the user; they raise their prices (selling fees, etc.); most of the time I have a hard time finding my listings, which they blame on me and now they want to find ways to make sellers pay them more money?
They seem to be comfortable with the profits they are collecting from all the foreign sellers claiming to be from the United States, the sellers from the U.S. who Ebay knows are scamming buyers and do nothing to stop the situation; maybe those sellers should be paying Ebay the most money and leave us honest sellers alone!!

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

by: Whatever This user has validated their user name.

Mon Aug 6 13:15:54 2018

closed one store - saving $60 a month

2nd store downgraded to starter - thanks for that idea ebay Saving another $50 a month and no contract

3rd store downgraded from premium to basic - went monthly so I can get the hell out anytime I want

today downloading to Ecrater - why not? it's free (get it ebay?)

it's been an interesting 20 years - all good thing come to an end right? ANYONE who is still selling exclusively on eBay is well - stupid

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.

Mon Aug 6 14:29:18 2018

It's like ebay knows it has cancer and is self-treating itself.
"I'll be OK if I just increase a few more fees."

They totally ignore a known cure...increasing SELLERS.

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

by: uppercutknives This user has validated their user name.

Mon Aug 6 14:30:28 2018

So let me understand correctly. Ebay wants sellers to spend more money on advertising the products that ebay "SPECIFICALLY SAYS IN ITS POLICY UPDATES" we may not show the item.  And as everyone knows ebay "HIDES", "DELETES", PUSHES BACK IN SEARCH, AND simply does not show at all.

What "IDIOT" would pay for advertising when they come right out and say your item may or may not bee seen?

Ebay is DEAD folks. Pack your bags and move on, nothing to see here. Just a fish out of water flopping around in death throws.

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

by: val2525 This user has validated their user name.

Mon Aug 6 15:57:10 2018

"so sellers will have to compete for ad space with local service providers, such as plumbers and hairdressers"

WTH?  Seriously eBay?  I think it's time to start looking at my own website and moving to other sites.

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.

Mon Aug 6 17:21:42 2018

In a nutshell, ebay's new and improved game plan is:

To rely on the generosity of strangers.
or in street lingo...
"Brother, can you spare a dime?"

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: QueenMab

Tue Aug 7 13:57:13 2018

Dumb, Dumber, Dumbest. Devin will not get a penny more from me.  

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: wolf

Fri Aug 10 19:04:46 2018

It makes me think of the Dinosaurs era = one moment there the next EXTINCT ahahah

That is what is happening with eBay = Devin and Donahoe might think they are it  however for how long ????

They are both like a bad virus & hopefully the cure will be coming soon = I truly hope it will be sooner rather than later

Enough said really !!

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

by: westcoastflea This user has validated their user name.

Wed Sep 26 14:24:19 2018

ebay needs to get off its lazy ass and make money the old fashioned way WORK!
my sales have dropped 1,000 this month i am now listed on 6 international sites still sales are almost nil. customer service says many sellers are calling in regards to this, only explanation ebay's changes. If ebay wants more money from us they need to fix their site, not ask sellers who have lost 85% of sales to pay more. We ALREADY PAY  for our stores=listings, when is  ebay going to stop trying to suck sellers dry? They want more revenue? simple, bring more buyers to the site. I pay my fees, give me the service i pay for.  

Click to view more comments
1 2 3 4 5 


Login is required to post comments.
To sign in to leave a comment using your AB Verify User Name, fill in the form below. If you have not yet signed up for AB Verify, or if you'd like more information, go to the Registration Page
.

Login for AB Verify
Be sure and use your email address and password to log in.

 
Email:
Password:
 
 Forgot Your Password?
 Even though you are signed in with the AuctionBytes Blog, you will have to sign in to the EcommerceBytes blog. But you can sign in with your existing AB Verify info.