Ina Steiner EcommerceBytes Blog
News and insight focusing on ecommerce.
by Ina Steiner, Editor of EcommerceBytes.com
Sun May 2 2021 15:36:01

Will eBay Copy Etsy's Unpopular Offsite Ad Model?

By: Ina Steiner

Sponsored Link

eBay CEO Jamie Iannone told Wall Street analysts on Wednesday it would launch experiments this quarter to further monetize the site through the following new advertising models:

- Promoted Listing Ads for auctions;

- CPC ads;

- Offsite ads.

eBay Promoted Listing ads are CPA - Cost Per Acquisition. The seller doesn't pay unless an item sells, though the shopper doesn't have to buy the item right away. The CPC ads eBay is testing stands for Cost Per Click. The seller pays when a shopper clicks on the ad, regardless of whether they purchase the item.

Currently Promoted Listing Ads are available only for fixed-price listings.

One of eBay's tests is an offsite ad pilot, and although the CEO provided few details, one can look for clues by studying Etsy's offsite ad program.

Etsy explains how Offsite Ads work on this page.

How Etsy's Offsite Ads Work
Etsy advertises listings throughout the web, including in search engine results, social media sites and apps, Etsy Publishing Partner sites, and Google Display Network sites. Etsy offers this service with no upfront costs to you: you only pay an advertising fee when you make a sale.

Your listings may be included in these advertisements. Etsy may at our discretion automatically advertise your listings with our partners.

Offsite ads may be optional for your shop, depending on the revenue you've made on Etsy in the past 12 months.

Etsy provides more details on the page and then explains how the fees work - sellers pay between 12% - 15% of the sale, depending on the seller's revenue over the past 12 months, but "will never exceed $100 USD, regardless of the order total for an order attributed to an Offsite Ad."

(That 12% - 15% is in addition to Etsy's commission.)

There are several reasons why some Etsy sellers object to the program. One is that it's mandatory (except for the smallest of sellers). The other: some sellers believe Etsy charges fees for sales that the seller is responsible for generating.

And sellers dislike the unpredictability of the program. As we blogged recently, "Sellers can be going along paying Etsy 5% commissions, and suddenly they make a sale where the commission is 17%."

There's no indication of whether eBay will copy Etsy's offsite ad program wholesale, whether they may borrow features from it, or if eBay has something else entirely in mind.

If you have experience with Etsy offsite ads, let us know how well they work and whether you'd welcome a similar model for your eBay listings.

We'd also like to hear what you think about the other experiments eBay is running this quarter, which you can read more about in this EcommerceBytes Newsflash article.

Comments (25) | Leave Comment | Permalink
Readers Comments

Perminate Link for Will eBay Copy Etsy's Unpopular Offsite Ad Model?   Will eBay Copy Etsy's Unpopular Offsite Ad Model?

by: postbuster This user has validated their user name.

Wed May 5 17:31:51 2021

@Geetar

Agreed, that's where I first got started.

Unfortunately it did not take long for ebay to ruin my business on their site with their gimmicks.
That's where the investors came in and took advantage of a good, working business and destroyed it for everyone else.  

These are the kinds of people who will take a 20 person lifeboat all for themselves. Not a vertebrae in their bodies, not even a grain in their souls.

Perminate Link for Will eBay Copy Etsy's Unpopular Offsite Ad Model?   Will eBay Copy Etsy's Unpopular Offsite Ad Model?

by: pace306 This user has validated their user name.

Wed May 5 17:43:16 2021

"Will eBay Copy Etsy's Unpopular Offsite Ad Model? "

If theres a chance on gods green earth for eBay to grab some more money from sellers - for doing LESS work - they will.

Is there a human (breathing or not) that thinks they wouldnt?

Perminate Link for Will eBay Copy Etsy's Unpopular Offsite Ad Model?   Will eBay Copy Etsy's Unpopular Offsite Ad Model?

by: Geetar This user has validated their user name.

Wed May 5 18:52:36 2021

It's unfortunate, but now that this CEO has been here a while, the heat is on. Make growth,.....and then make growth one way or another.

So it probably wont be long till they are looking for ways to lift our wallets out of our pockets. At least there are alternatives now.

Perminate Link for Will eBay Copy Etsy's Unpopular Offsite Ad Model?   Will eBay Copy Etsy's Unpopular Offsite Ad Model?

This user has validated their user name. by: Bill

Thu May 6 00:25:55 2021

Well after almost 22 years on eBay they have told me that I have until 5-21 to sign up for MP and I delete all of their messages right away because when that happens I WILL be gone.

Perminate Link for Will eBay Copy Etsy's Unpopular Offsite Ad Model?   Will eBay Copy Etsy's Unpopular Offsite Ad Model?

by: JoannaRyan69 This user has validated their user name.

Mon Aug 9 21:47:49 2021

Keep killing the goose that laid the golden egg. As an Esty seller I put my shop on vacation each month after reaching $800 in sales. Before the 12% success penalty kicks in. I can not nor can my buyers afford the 25%+ FVF on items when shipping is also assessed the fee on the item and shipping. If Ebay does what Etsy has done it will be just pure greed 15% is not enough? This will be the final straw in my 23+ year of selling on Ebay. Time to clean out basement and fill the land fill.    Alluros makes made to order cabinetry.   https://alluroscustomcabinetsinpeoria.com/

Click to view more comments
1 2 


Login is required to post comments.
To sign in to leave a comment, 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.