| Mon Sept 1 2014 11:01:11 |
Paying for Traffic: Should eBay Revive Seller Referrals?
By: Ina Steiner
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Remember when eBay would reward sellers for driving traffic to their own eBay Stores? I was reminded of the old referral program upon reading Brian Dunning's blog post in which he alleges improprieties in eBay's affiliate program, which rewards affiliate marketers for sending traffic to eBay listings (see today's Newsflash story to read more).
Four years ago, we reported that eBay had paid $2.8 million in affiliate commissions to Brian Dunning's company in 2006. The same year, it paid $10.5 million to another affiliate, Shawn Hogan's Digital Point Solutions.
That was just one year's compensation figures - the two were members of the affiliate program for multiple years. Yet eBay then turned around and convinced the FBI to investigate the two companies for committing fraud against it. (According to Dunning's allegations, 3 years after it complained to the FBI, eBay was still showcasing affiliates who were engaged in the very same practice.)
This 2004 article explains eBay's program that rewarded sellers for driving traffic to their eBay Stores:
"In a nutshell, the Store Referral Credit rewards you when you promote your eBay Store and drive traffic to your Store listings. If you send customers to your Store and they buy from you, eBay will refund you 50% of the final value fee for those items purchased."
eBay eliminated Store Referral Credits on March 30, 2010, when it eliminated Store Inventory Format listings, moving Store to Core.
But why not bring back a similar program? While affiliate marketers can drive a lot of traffic, it would seem logical that eBay sellers could drive more qualified traffic to their own listings.
Sellers with their own off-eBay stores mightn't bother with such a program, but for some sellers, it could provide an offset to eBay fees. And, in light of its recent security breach, eBay could use all the ambassadors it can get encouraging shoppers to return to its marketplace. What do you think?
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