Ina Steiner EcommerceBytes Blog
News and insight focusing on ecommerce.
by Ina Steiner, Editor of EcommerceBytes.com
Tue Oct 11 2016 20:54:26

Does the Math Work on eBay BOGO Promo for Sellers?

By: Ina Steiner

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eBay is running a promotion to encourage sellers to offer BOGO deals for shoppers (Buy One, Get One at a reduced price). But is it a good deal for sellers?

That's what one seller asked on the eBay boards, referring to a new offer 25% off Final Value Fees. "So let me get this straight we are supposed to offer "buy 1, get 1 50% off" (or even 25% off) to get 25% off the 10% final value fee you charge us so we lose 50% of the value of our item and get back only pennies on the dollar?"

But another poster said they had seen many questions from sellers in the past inquiring about how to offer such a promotion to help them move inventory. Another seller said it's a perfect way for them to try to unload out-of-season items.

The promotion runs through December, but sellers won't receive the credit for 3 months: "I looked at it but decided against it as I felt it was just another race to the bottom as well as the seller will not see the credit for 90 days after the promotion ends in December," a seller wrote. "So I would not see any benefits of this until my April invoice."

Sellers were mixed on whether a discount on Final Value Fees was worth running a sale. When some said sellers could raise their prices before running the BOGO promotion, others advised against doing so.

What do you think of eBay's new promotion? (Be sure to read the fine print, as eBay may be running several promos for sellers throughout the holidays.)




Comments (22) | Leave Comment | Permalink

Readers Comments

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This user has validated their user name. by: bitbybit

Tue Oct 11 23:14:45 2016

This is just one of the many ebay creative bookkeeping ''plans'' offered to sellers. Will sellers remember this credit in three months and how accurate will it be with all those 30 day holiday returns and money back guarantees? Then there is Paypal.....

Most b&m stores offer this BOGO at 50% on various products on a weekly basis. These offers mean very little to me as a consumer.The only one that counts is BOGO for FREE. Of course it depends on the product. Everyone knows or should know by now to never pay retail especially when it comes to clothing.

The old eBay didn't have to resort to gimmicks but now that eBay wants to be all shiny new they have to throw everything out there just to stay relevant. It also means throwing their sellers under the bus.

Some sellers may do well with this promo and it may appeal to buyers not savvy on promos and deals. Again, it all depends on your product. Maybe a better deal for sellers would be to write this inventory as a loss on your taxes. Saves your valuable time and you may just come out ahead.  

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This user has validated their user name. by: Rexford

Wed Oct 12 07:00:22 2016

I won't be participating in this. I can hear the "but one of them is damaged" now.

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by: angryllama This user has validated their user name.

Wed Oct 12 07:11:00 2016

Another Day. Another Stupid eBay promotion idea.  Day after Day I'm more and more inclined to think that eBay has an entire TEAM of BOZOS assigned to accelerate the destruction of smaller, newer, still-NAIVE sellers.  Why else would they SOOOOO ardently encourage sellers who have not yet had their hand bitten off by "ignorantly" offering FREE SHIPPING on heavier, LARGER, items when now even USPS Priority Mail is getting the DIMENSIONAL WEIGHT treatment if the destination is zone 5 or higher. Sellers in any of the "four extreme corners" of the lower 48 are especially prone to this PAINFUL lesson.  Different take on this is that eBay's Board of Bozos to promote silly-season promotions seem to HONESTLY think that the MAJORITY of their sellers are REAL BUSINESSES who get to buy FACTORY NEW products for 70 percent off "retail price".  Why else would they ever even DREAM that this sort of promotion could benefit more sellers than it HURTS?

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by: 27tcle This user has validated their user name.

Wed Oct 12 08:07:19 2016

Isn't that what best offer is for? At this point it's simply take what you can get. Why do we need more confusing offers that buyers are not going to use. BOGO = offer to buy two at half off price, i guess buyers cannot do even basic math according to ebay. What we need is The foreign crap to be compartmentalized in one catagory, half off FVF, and increased traffic to our AD's. That would make ebay great again.... Yeah the newer sellers who list bulky, heavy stuff with low starting price and free shipping and it ends with a few bucks bid... OUCH! We all know how that one usually ends.

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This user has validated their user name. by: RKTOYS

Wed Oct 12 09:01:15 2016

I won't be participating either.  Creative book-keeping is exactly what it is, just another special case that I have to reprogram for.  And for what?  Where are people buying two of anything these days?

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This user has validated their user name. by: The End

Wed Oct 12 09:02:43 2016

Ebay needs to get out of the "We'll tell you how to run Your Business" business.
EBAY > Just Shut Up and LOWER THE FEES.

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by: fifilapew This user has validated their user name.

Wed Oct 12 09:03:48 2016

yes the 90 day credit put me off as well

give it away today and not see the credit on FVF for 90 days???

No thank you ebay

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by: Barbbie This user has validated their user name.

Wed Oct 12 09:29:30 2016

So my lesson learned is that if the buyer buys multiple items and then returns only one of them, the seller must refund all of them.
Why on earth would I want to encourage multiple sales.
Besides, this one sounds stupid. The math just does not make sense. I guess if you wanted to do it anyway but not to save on a fee and if you already get 20% off then it is only an extra 5%, and not now, later, what if they forget or more likely tell you they never heard of that, never sent that email and you faked it (that is what I was told about an shipping fee shortage when I had the proof through an ebay invoice of what was to be paid when they collected less from a buyer - supposedly I faked it). No thanks.

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by: spooky This user has validated their user name.

Wed Oct 12 09:46:23 2016

I would think for 99% of sellers on eBay this would make no sense at all

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by: DVDsandMore This user has validated their user name.

Wed Oct 12 10:35:33 2016

I run a promotion like this on some items already.  I have some small items that don't sell for much, but help keep numbers and feedback up, and most of the price for these "free shipping" items is actually the postage.  The shipping cost is the same or marginally different for a second item, so I actually make more money when people buy two, even with both of them being 25% off.  

It works great for small, low cost items. It won't work for flat screen TVs.

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by: FeelingFroggy This user has validated their user name.

Wed Oct 12 14:01:48 2016

As long as it works for Ebay whats the difference. Ebay doesn't do anything that would help the sellers.

If you are a smart seller you will just go the other way.

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This user has validated their user name. by: iheartjacksparrow

Wed Oct 12 16:43:33 2016

Sounds like eBay is trying to inflate their fourth quarter financials. And I agree with "bitbybit." How many sellers are going to forget about the credit by March/April? Or maybe a 'glitch' will occur that will wipe out all of eBay's records concerning the promotion.  

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This user has validated their user name. by: Ming the Merciless

Wed Oct 12 18:23:33 2016

Typical ebafia.

Its management thinks it's brilliant, all buyers are always right, and all sellers are dishonest and terminally stupid.

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by: mindelec This user has validated their user name.

Thu Oct 13 01:54:44 2016

why does every ebay idea to increase sales involve me making less money?

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by: pace306 This user has validated their user name.

Thu Oct 13 09:50:14 2016

@mindelec

EVERY eBay policy involves sellers making less money!

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by: Frank F This user has validated their user name.

Thu Oct 13 15:14:14 2016

Yeah, just like the 'ebay BUCKS for sellers' promotion last month. Per my calculation I should have earned $120 in ebay bucks (it was 6%), but when it was all said and done, ebay gave me $22...... No accounting on how they came up with that or anything.. Just quit favoring the damn Chinese and give us some visibility and fairness..... No need for any stupid promos..

Having 1200 items and getting 3-4 sales a day borders on the ridiculous and you know its manipulated otherwise it would be 15 one day, 5 the next and so on, not a consistent 3-4 a day, everyday.... Classless and unethical company....

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by: Frank F This user has validated their user name.

Thu Oct 13 15:14:15 2016

Yeah, just like the 'ebay BUCKS for sellers' promotion last month. Per my calculation I should have earned $120 in ebay bucks (it was 6%), but when it was all said and done, ebay gave me $22...... No accounting on how they came up with that or anything.. Just quit favoring the damn Chinese and give us some visibility and fairness..... No need for any stupid promos..

Having 1200 items and getting 3-4 sales a day borders on the ridiculous and you know its manipulated otherwise it would be 15 one day, 5 the next and so on, not a consistent 3-4 a day, everyday.... Classless and unethical company....

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by: ZZ This user has validated their user name.

Fri Oct 14 11:21:17 2016

One thing that works for me is to raise all my prices 10%, then run the 10% off option for this promotion. The net effect is you have reduced your actual prices 1% and you get your FV fee (about 10%) reduced 25% so that is about 2.5% of the sales price for a net gain to you of 1.5% and to the buyer of 1%.

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This user has validated their user name. by: bitbybit

Fri Oct 14 12:16:43 2016

@ZZ

well that was perfectly clear

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by: Volvo351 This user has validated their user name.

Sat Oct 15 10:45:43 2016

@Rexford

Yeah, and you don't have to be a genius to know WHICH one is 'damaged' - the full-price one, natch!

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