Ina Steiner EcommerceBytes Blog
News and insight focusing on ecommerce.
by Ina Steiner, Editor of EcommerceBytes.com
Tue Jan 5 2021 22:48:57

Should You Pay Extra to Advertise Your eBay Listings?

By: Ina Steiner

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How much should you spend to promote your listings on eBay? Some sellers would say the fees they already pay should cover the cost of getting exposure to shoppers, but others are willing to pay more to get an edge over their competitors.

But if you are open to advertising your eBay listings, how much extra should you pay? 

eBay just announced the launch of a "machine learning based bid recommendation system" for Promoted Listings.

As readers may know, sellers choose how much they will pay for sales made through Promoted Listing Ads by setting a percentage of the final sale price. If a shopper clicks on their ad and purchases the item within 30 days, sellers pay eBay the rate they've selected.

But eBay explains it's tricky for sellers to calculate the optimal ad rate, even with access to detailed metrics and Promoted Listings campaign reports, so it used machine learning to develop an algorithm to provide an item-level suggested ad rate which helps balance cost and performance. In a post on the eBay Tech blog, tech researchers for the company explained how it worked.

eBay's Senior Product Manager of Advertising Sarvesh Saran called it a huge achievement by the eBay Advertising team. "This will help eBay sellers succeed in their advertising goals while minimizing cost," the executive wrote.

eBay is counting on advertising, as well as managed payments, to grow revenue. Let us know what you think of the new feature and if it will entice you to try eBay advertising.

Comments (26) | Leave Comment | Permalink
Readers Comments

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This user has validated their user name. by: CanBrit

Fri Jan 8 19:01:59 2021

I close my BINS every 28 days and relist. This has been the best advertising for me and it doesn't cost anything.

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This user has validated their user name. by: RKTOYS

Sat Jan 9 22:54:52 2021

I should note that I think the only reason I've seen decent sales the last few weeks is to trick me into registering for Mangled Payments.  As soon as they would have be ensnared in that trap, sales would drop right back off the cliff they had fallen off years ago.  Nice try.  Enjoy the last few commissions you're ever getting from me.

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by: E-commerce Newbie This user has validated their user name.

Mon Jan 11 13:52:46 2021

With eBay putting "sponsored" and "suggested" and "similar" items in rows before your description of the very product the buyer is looking for is highly irregular! I've checked my own listings and for heaven's sake the buyer is going to be distracted by everything above you and probably 2 to 1 cheaper! And as far as Promoted in my category sellers are bidding against a machine! I mean it's up to 10% on top of their 12%. Highway robbery unless you're a Store or an established Gold Star, or whatever, seller; as I see certain sellers constantly being shown and their SEO's aren't even close to what you'd expect! Can't win! PLUS the fact they haven't corrected glitches in my account for over a year! Reps keep saying "well Tech doesn't talk to you or us, they'll get to it. All I can do is issue a Tag to them."

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

Mon Jan 11 14:28:32 2021

@E-commerce Newbie

PLUS the fact they haven't corrected glitches in my account for over a year! Reps keep saying "well Tech doesn't talk to you or us, they'll get to it. All I can do is issue a Tag to them."

Kind of difficult for the techs to communicate with anybody else as i am sure that most of not all of them do not speak English as everything about Sellers Hub has been farmed out to offshore companies (the cheapest that Ebay can find).  I also am sure that their contract pays them very little if anything to try and find the problem let alone fix the glitches.  Remember that a very large majority of those problems continue to steal money from the sellers and put it into Ebays pocket, so there is also no incentive to fix the problem.

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by: List Rank Sell This user has validated their user name.
Web Site

Tue Jan 12 17:43:26 2021

Full disclosure: We are using the suggested ad rate as suggested in the example below and are updating it across the board once per month. We have not, and do not intend to test increasing beyond the ad rate as shown by eBay.

We were not terribly impressed by Promoted Listings in its early incarnation.  It was far too easy for low quality sellers to "buy their way to the top," and the former trending rate consistently seemed out of line in relation to our clients' typical margins.

However, since the switch to the new suggested ad rate in Fall 2020 (which included a ban on Below Standard sellers), we have seen a considerable improvement in ad performance, placement, and overall lowered ad spend.

This, combined with the existing superior ad model (pay per sale) over Amazon and similar ad platforms like Google (pay per click), has worked out well for our clients who use Promoted Listings.

A current client is seeing an increase in quarterly net sales of 282.7% over the same 90-day period last year.  Promoted Listings ads account for 65.6% of all sales, and ad fees are currently costing 4.8% of total sales (well within their margins).

Approximately 2/3 of their eBay store has been fully optimized. As we move towards completion of the project, this client will be able to gradually back off their ads as individual listing sales history (a top Best Match ranking factor) continues to increase across their product offerings.

We generally recommend Promoted Listings to our clients, and when we do so, we recommend it highly. But we do not serve traditional "mom and pop" sellers, who may or may not benefit from using ads in the first place.

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by: Nova Rae This user has validated their user name.

Fri Jan 15 14:37:13 2021

Are you kidding? If you don't mind throwing your money into the wind, then go right ahead! I wouldn't trust any paid promotional tool unless it was offsite and had absolutely nothing to do with eBay (or whichever marketplace).

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