Ina Steiner EcommerceBytes Blog
News and insight focusing on ecommerce.
by Ina Steiner, Editor of EcommerceBytes.com
Wed Oct 16 2019 17:02:12

Driving Traffic to eBay May Lose Its Appeal

By: Ina Steiner

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eBay finally published its new affiliate marketing rate card, and feedback from participants in the eBay Partner Network program (ePN) indicate that traffic to the eBay site could be a casualty. The disincentive to drive shoppers to eBay comes at a time when eBay marketplace sales growth has been stagnant.

In July, eBay had notified affiliates of changes to the program. As we reported at the time

"eBay is changing how it pays affiliate marketers for traffic and will publish a new rate card for the eBay Partner Network (ePN) program that takes effect this fall. The biggest change is how the payouts are based - instead of paying affiliates a percentage of eBay revenue (fees it collects from sellers), it will pay a percentage of sales (presumably the selling price or total transaction value)."

ePN members have been frustrated at eBay's delay in publishing the new rates, and some expressed disappointment today that it waited until the 4th quarter as buyers are already gearing up for holiday shopping.

Initial feedback from affiliates indicate many estimate a 30% or more drop in revenue under the new rates. One problem with the new rate card: they don't map to eBay's category structure, leaving affiliates to guess the impact of the rates and wonder if they'll be compensated at a mere 1%. 

eBay Director of Business Operations & Partner Success Michael Lill was featured in an interview on the ePN blog, where he said, "Many partners may see a small change in earning" as a result of the new rate card. 

Lill used an example of a Magic the Gathering box set that he said sells for $235 on eBay.com. 

Under the current rate card, partners would earn 50% of eBay take rate revenue (which is about 8% in this case, or $18.80). 

Under the new rate card, partners would earn 4% of the sale price, or $9.40. 

We did the math: that's a 50% decline in revenue. (As we proofed this post immediately after hitting the publish button, we realized he may have meant affiliates would currently receive 50% of the $18.80, which is $9.40 - meaning the rate would remain the same in that example.)

We couldn't spot a date for when the new rates take effect, but a notice on the ePN website says eBay will be rolling out a new platform on October 23.

If affiliates are confirmed in finding that their efforts to promote eBay become less lucrative with the new rates, they may devote their efforts promoting traffic elsewhere, which would be bad for eBay and for eBay sellers.

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Readers Comments

Perminate Link for Driving Traffic to eBay May Lose Its Appeal   Driving Traffic to eBay May Lose Its Appeal

by: Geetar This user has validated their user name.

Wed Oct 16 17:49:30 2019

Penny wise, dollar foolish. And as sellers, we are effected by their foolish decisions. I hope this decision, is just because they have come up with a new marketing plan.

But we all know that isnt the case.

Its a loooong slow painful slide to the bottom.

Perminate Link for Driving Traffic to eBay May Lose Its Appeal   Driving Traffic to eBay May Lose Its Appeal

by: maxmad This user has validated their user name.

Wed Oct 16 18:26:06 2019

it just goes to show how easy it was for 2 idiot CEO's to destroy a once thriving company, in such a short time,, ebay will never recover,

Sellers will pay the price to sink with ship,

Perminate Link for Driving Traffic to eBay May Lose Its Appeal   Driving Traffic to eBay May Lose Its Appeal

This user has validated their user name. by: NoMoreEbay

Wed Oct 16 19:02:27 2019

Wenig is gone yet the stupidity continues. How a giant hasn't come in yet to compete with this joke is mind boggling. At the very least Alibaba could do a hostile. 3/4 of the sellers are Chinese anyway. It would be a slam dunk and a win win for China and ebay.

Perminate Link for Driving Traffic to eBay May Lose Its Appeal   Driving Traffic to eBay May Lose Its Appeal

by: thievesBay This user has validated their user name.

Wed Oct 16 19:39:30 2019

lol eBay says "small change" while affiliates are estimating 30% loss of revenue while the example shows 50% loss. That's not "small". eBay isn't getting traffic anyway so they're cutting affiliate payouts to save money for themselves. And now affilates have no incentive to send traffic to eBay. If you think views and sales are bad now, it's gonna drop even more. But as I've said before, eBay couldn't care less about sales. They want "sellers" and "listings" to make money off you from advertising, store fees, and the GTC relisting scam. This company is a disaster that's rolling downhill into the gutter fast.

Perminate Link for Driving Traffic to eBay May Lose Its Appeal   Driving Traffic to eBay May Lose Its Appeal

This user has validated their user name. by: Ric

Wed Oct 16 22:48:38 2019

So, eBay's inept management now drives affiliates incentives into the ground.

This company will implode sooner rather than later. 2019 Q4 GMV is going to be an unmitigated disaster, and 2020 will be no better.

Sellers are making nothing, affiliates are making nothing, but eBay executives continue to reap multi million dollar salaries while driving the marketplace sales lower and lower.

This cycle is unsustainable and the company is a few thousand departing sellers away from total financial collapse that even the best eCommerce CEO will be helpless to reverse.

Perminate Link for Driving Traffic to eBay May Lose Its Appeal   Driving Traffic to eBay May Lose Its Appeal

by: notfunanymore This user has validated their user name.

Thu Oct 17 06:45:22 2019

Sellers, Good luck this holiday season. I’m sure this move at yet another money grab will not affect your bottom line...  

Perminate Link for Driving Traffic to eBay May Lose Its Appeal   Driving Traffic to eBay May Lose Its Appeal

by: elcheapoposters This user has validated their user name.
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Thu Oct 17 16:22:16 2019

I've been reading doom for Ebay posts for nearly 15 years. I do agree.. I used to send ebay thousands of dollars in sales each month... I stopped a while ago after noticing revenue decreases.... personally I like to work with higher percentage affiliate programs which wind up being individual sellers who've jumped ship to run they're own sites...  

Perminate Link for Driving Traffic to eBay May Lose Its Appeal   Driving Traffic to eBay May Lose Its Appeal

by: Geetar This user has validated their user name.

Thu Oct 17 18:18:19 2019

The best part is......if you drive your own traffic to YOUR listings from outside, it doesn't matter anyway. Because we all know ebay limits your sales.  These guys are  real winners at the exec level.

Perminate Link for Driving Traffic to eBay May Lose Its Appeal   Driving Traffic to eBay May Lose Its Appeal

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

Thu Oct 17 23:46:45 2019

This is right in line with Ebays plan that was announced in April, lower marketing expenses which will result in lower sales.  Even though Wenig is gone the temporary CEO was his partner in crime so nothing is going to change until the BOD gets NEW BLOOD in the CEO seat that realizes that unless Ebay increases traffic and potential sales for their Sellers all the advertising and other fees won't matter because there will not be anybody left to pay them.

Come on Ebay, get rid of the pathetic offshore programmers and hire some new ones that know what they are doing and can fix all the things that have been broken under Wenigs Disruptive Technology BS.  Sellers need more sales and if and when that happens then Ebay might actually see an increase in Promoted Listings and other advertising revenue as Sellers have the money to pay for those extra services rather than scraping by to just put food on the table.  Ebay lost site of what made them a great company and I guess everybody that understood what helped Ebay grow is long gone, or is to afraid to open their mouth because they will suddenly be unemployed.  

Wake up BOD,, it takes spending money to make money.  Get a CEO in there who understands it quickly or you will not have a company that needs a BOD.  Replacing Wenig with Schenkel is just putting another useless CEO with no understanding of Ecommerce in charge of an Ecommerce company, but it sounds like that is your newest plan now that you his compensation plan has been announced.  Its starting to sound more and more like the BOD members also have Golden Parachutes in place with Ebay/:))

Perminate Link for Driving Traffic to eBay May Lose Its Appeal   Driving Traffic to eBay May Lose Its Appeal

by: Whatever This user has validated their user name.

Fri Oct 18 10:05:04 2019

Drive traffic to eBay? Why? The consumer will barely see my listings. There is so my advertising crap on my listing page and others it's just tipped over the edge of ridiculous. Have you tried to actually see a sellers description? Is there even one? I've quietly gone my separate way. I still list and do sell there but have now gone to Amazon something that I said I would never do. Here's the kicker - I'm actually enjoying it and selling a few things here and there. And my website is picking up nicely. If I'm going to drive traffic now it's not going to be eBay. I barely sustain myself there now. And I'm happy elsewhere - trying to build my own golden parachute.

Perminate Link for Driving Traffic to eBay May Lose Its Appeal   Driving Traffic to eBay May Lose Its Appeal

by: pace306 This user has validated their user name.

Fri Oct 18 10:24:08 2019

eBay in a vain attempt to "save money and restructure" (or something), continues to make mistake after mistake.

The new interim CEO is a bigger dope then the last one (did anyone think that was possible), and the rush to make yourself "look good" isnt working.

eBay needs MORE traffic, not less; eBay needs more buyers, not more flea market sellers; eBay needs to refocus on SELLING, not advertising ...... maybe call "sleeping Griff" or that Jordan guy ....... nah - easier to run the company into the ground and collect the golden parachute(s).

It is absurd that you would pay for traffic that doesnt go directly to YOUR listing - but then again eBay is the king of crime - fraud is the least of their worries.

As mentioned above - listing pages are a mess, traffic in general is non existent, the new forced specifics are useless an unnecessary (again forcing sellers to do the job eBay should be doing aka creating a catalog), and eBays take is WAY TOO HIGH for the nothing that it does to help sellers. (Lets skip GSP, eBays forced returns policies, eBaypay and all the other disasters they created).

Q3 numbers ........ are like yelling in to the Grand Canyon ... eBay will survive Q4 and Q1 .. after that ..... run!

Perminate Link for Driving Traffic to eBay May Lose Its Appeal   Driving Traffic to eBay May Lose Its Appeal

by: SANT1N1 This user has validated their user name.

Fri Oct 18 21:54:37 2019

"But as I've said before, eBay couldn't care less about sales. They want "sellers" and "listings" to make money off you from advertising, store fees, and the GTC relisting scam."

The hopefully they'll stop worrying about sellers taking sales off ebay!

Perminate Link for Driving Traffic to eBay May Lose Its Appeal   Driving Traffic to eBay May Lose Its Appeal

by: industrystones This user has validated their user name.

Sat Oct 19 21:56:42 2019

All of this doesn't even matter. Have you guys thought of that?
With the recent postal increase ALONG with the new coming one in January as well - Shipping rates are through the roof and gouging you into the abyss!

Perminate Link for Driving Traffic to eBay May Lose Its Appeal   Driving Traffic to eBay May Lose Its Appeal

by: purpleiris This user has validated their user name.

Sat Oct 19 22:18:01 2019

Wow! Talk about shooting yourself in the foot. Affiliates are key to keeping the traffic coming. Oh well, I know which site I won't be driving traffic for.

I've never sold there and quit shopping there years ago. Looking at a listing now, I'm like, "Okay, where's the description?" I'm one who does read everything available before buying. So, if I can't readily find the information I'm looking for...

BYE!



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