Ina Steiner EcommerceBytes Blog
News and insight focusing on ecommerce.
by Ina Steiner, Editor of EcommerceBytes.com
Mon Mar 6 2017 13:53:14

How Much Should You Spend on Marketing?

By: Ina Steiner

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In today's issue of EcommerceBytes 411, we took a look at eBay's Promoted Listings program, which allow sellers to advertise their listings to give them greater visibility. It got us wondering about how much sellers are willing to spend on the program.

Sellers set a percentage of the selling price they're willing to pay to get a sale, from 1% to 20% of the item's final sale price (excluding shipping and taxes) - eBay will then display the Promoted Listings in various spots on its site, including search results pages and inside other sellers' listings. Sellers only pay if the item sells within 30 days of a buyer's click.

So how much should eBay sellers budget for Promoted Listing Ads, if anything? Since this is not a cost-per-click model, but rather a percentage of the item's final selling price, what factors should sellers consider?

Reid Armstrong of Kyozou shared this advice for eBay sellers: "Generally a good rule of thumb when allocating marketing resources is to spend 10% of your revenue. This can be used for paid listing features like listing with a subtitle or listing to multiple categories or spending on promoted listings. One of the nice features with promoted listings is that you can spend what you are comfortable with and choose the percentage value."

Does the type of item you're listing make a difference - commodity vs. unique items, new vs. used goods, for example? How much you spend on marketplace ads may also depend on whether you are selling only on marketplaces, or if you also have your own store.

How much do you spend to market your product listings, and do you have any rules of thumb you follow? (And under what circumstances would you pay 20% of the selling price for an eBay Promoted Listing?)

Feel free to chime in on how much you spend to market your listings on other marketplaces.




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by: FeelingFroggy This user has validated their user name.

Mon Mar 6 14:01:09 2017

As the owner of five different stores we would NEVER EVER PAY ONE DIME FOR MARKETING TO FLEECEBAY..

As for other marketing expenses, nil, zilch, nada.

If someone needs what we are selling they have no problem finding it as we are busier now then we have ever been.

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by: SomeeBaySeller This user has validated their user name.

Mon Mar 6 15:35:32 2017

Promoted listings it just a race for the bottom, eBay said they want lower prices, but then want to charge you more fees. Simply just does not make sense as a business not to make profit, selling on ebay has now become a minimum wage job. Seems the only way you can get in search is to sell everything at near cost and make nothing while ebay runs away with the profits for themselves.

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This user has validated their user name. by: eXtinctBay

Mon Mar 6 15:39:12 2017

I think I speak for most all sellers on eBay or Amazon (or any other 3P ecommerce site). We pay exorbitant fees for two things.....

TRAFFIC
and
EXPOSURE

And we expect the sites to provide these services for our money. Period. This is not an unreasonable demand.

No way will I give up more of my profit margin to gain exposure that should be provided in the first place.

Between fees, income taxes, and the cost of obtaining the item, a seller loses at least 30-40% of the profit right off the top.

And eBay wants more fees on top of this? The program will not succeed if nobody opts into it, and all listings are featured equally, since there would be none that are ''promoted''.

Yes, we all have choices, and what may work for one seller may not work for another. In my case, I would spend the money developing my own website before having to pay any more in fees.
 

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by: FeelingFroggy This user has validated their user name.

Mon Mar 6 15:47:47 2017

Not one dime.......Not in a million years.

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by: woeisme This user has validated their user name.

Mon Mar 6 15:48:12 2017

eXtinctBay said it all and said it well.  With fees so high, there is no margin left to spend on another promotion.  Listing fees and store fees should be allocated toward promotion.

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by: RL15 This user has validated their user name.

Mon Mar 6 16:16:49 2017

fleabay is not getting any more money from me.

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by: Sven1010 This user has validated their user name.

Mon Mar 6 16:18:21 2017

Oh, cry me a river folks. Any one selling on ebay and Amazon, knows that the fees on ebay, even with the changes, are quite a bit less than Amazon. You can still make money on eBay if you know what you're doing.

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This user has validated their user name. by: iheartjacksparrow

Mon Mar 6 17:48:43 2017

We all know that eBay states in their TOS that they have no obligation to show the listings that you've paid for. I wonder if the same is true of their Promoted Listings? And I agree with those who have already stated that the fees they pay should already be going toward promotion.

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by: mcposty This user has validated their user name.

Mon Mar 6 18:49:42 2017

None if you are on ebay or Amazon or any third party site who you pay out the behind in fees for because they supposedly have the buyers. It's downright bs.

You should spend a lot on your own site.

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

Mon Mar 6 19:38:09 2017

ZERO. It's a scam. A team of under cover merchants discovered Google employees clicking on ads to get the money out of them.
WE NEED ORGANIC SEARCH....again. The Good Old Fashioned way.
Pay for Play SEO needs to go.
My invention sells itself. I delete ALL Email from SEO optimization  frauds.

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

Tue Mar 7 00:06:03 2017

Until ebay started F-ing with it i would make between 15 and 30 large a month grossed without really trying- with everything i listed starting at 10 bucks or so. This all ended when a big mass profit competitor copied my listing style and one of there employees put a rumor out about shilling. The anonymous bidding BS that eBay does made that rumor hard to dispute which killed my business forcing me to abandon auctions completely. Now auctions are a fools game as they can be rigged anyway ebay wants.. Screw it.

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

Tue Mar 7 00:28:21 2017

wow, why don't they get it over with and just hand it to the Chinese mega-sellers and make ebay the new china market... ''including search results pages and INSIDE other sellers' listings''. Really INSIDE your paid for listings? Seriously WTF?! No wonder all the sellers with cool stuff left like rats from a sinking ship!

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

Tue Mar 7 02:04:59 2017

I refuse to pay ebafia for ANY new services when the ones I'm currently paying for and/or have paid for in the past amounted to very little or nothing.

Ebafia offers little or no value proposition now for the money we pay them. Do they seriously think we should pay them still more money for more of the same?

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This user has validated their user name. by: Rexford

Tue Mar 7 08:01:41 2017

Ha! Their schemes make me laugh.
Promoted listings my eye. Promoted where, to the very bottom of search?

eBay management still haven't figured out that if all sellers do well on eBay ebay will do well.  It is such an elementary concept but completely over their heads.

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by: Volvo351 This user has validated their user name.

Tue Mar 7 09:57:29 2017

"Generally a good rule is 10%..."

Using that rule, I'm getting raked by feeBay and PayPig; they're costing me 15% or more.

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This user has validated their user name. by: RKTOYS

Tue Mar 7 10:49:55 2017

I don't pay for a promises and chances, I pay for results.  It's really simple.  You deliver a sale, I pay you a commission.  You don't deliver, you don't get paid.

It's a pretty sad state of affairs that this is even up for debate.

@Sven1010
Has Lithium borked the eBay boards so badly that they have to reassign moderators here?

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by: pace306 This user has validated their user name.

Tue Mar 7 11:41:46 2017

I think I echo EVERYONE else here (except for SVEN who either Tools twin brother or another eBay koolaid drinker) ... that as each day/month/year passes - eBay does LESS and LESS for anyone but itself.

Worse - you cant rely on eBay for ANYTHING - Sven ... can you?

eBays "FAME/Greatest Hits include"

- Abysmal CS agents/Help
- eBay/Lithium employees who are drunk on power
- eBay, who refuses to engage its seller base in ANY meaningful dialog
- eBay who routes money back to itself via Paypal and then inserts itself where its not asked to be or wanted
- A VERO dept who takes money to short shrift its own sellers
- eBay who takes your money but wont commit to showing your items 24/7/365
- eBay who refuses to show up at the most important industry shows

Most importantly ... eBay sales are inconsistent, biased and unreliable ........ so yes OF COURSE (not) I'll GLADLY pay them to do the job THEY SHOULD BE DOING IN THE FIRST PLACE, AGAIN and HOPE that maybe if Hal Lawton, Uncle Griff, or Devin Wenig will SPIN THE MAGIC EBAY WHEEL and send me a sale ...

ANYONE who does this is crazy - please send me your money instead!

(we can have a meaningful discussion on pay per click, Google adwords etc - but giving eBay any more money then absolutely needed is just insane)

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This user has validated their user name. by: toolguy

Tue Mar 7 11:54:05 2017

@ pace306

I'm not happy with eBay right this second but I don't know of any better place to sell my tools on the internet.

Do you?

The only place that can do as well as eBay for me is the Swapmeet.

I can sell in 2 days what I sell on eBay all week long.

And it's all CASH

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by: Trying-My-Best This user has validated their user name.

Tue Mar 7 14:40:50 2017

I'm doing awesome sales on other niche sites with items shifted from my eBay listings (that have been hidden for months).  

Simply put I'm tired, bone-tired, of eBay's tricks and pony show games.  

Oh, by the way - can't remember the last time I bought anything on eBay.  

Small sellers are quietly leaving their site and taking their 'buying dollars with them. And they ... still don't get it.  Not even sure why I even bothered to comment today -I'm still trying to understand the coming May updates.

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by: pace306 This user has validated their user name.

Tue Mar 7 16:10:01 2017

Tool - I hope you sell a MILLION tools - where ever it is :)

I hate "hating eBay" ... Im tired (as stated above) of the games, the lies, the tricks and the attitudes.

Like you, eBay is still an important place for me to do business - but Im doing by best to try and do enough on Amazon to make eBay "unimportant".

"Back in the day", unlike others in my field, I did more on eBay then Amazon. Hard to understand - but in those days, eBay worked with me.

I chose not to be TRSP (though I am TRS) because I cant handle the fraud when it comes to returns.

Back then I had a 14 return policy and all was well ..... until eBay made me eat a grand or so of losses due to returns.

It started when I had to eat a $400 Denon Turntable cart .... I said it was NEW, he admitted it was NEW, but he installed it, played with it, aligned it then claimed it was defective. I had to pay return shipping and got back a 1960s '78 needle ... no cart, no Denon.

Thats what started it and returns got worse from there. (Ill spare you and everyone else here).

Then I had my run ins with VERO - had to get a lawyer to shake their tree - but eBay played dumb to it all and it cost me time, effort, money and sales - and eBay never punished the manufacturers who admitted they lied. Happened 1x, 2x, 3x, 4x - shall I continue or explain that in instance #5 the manufacturer used Wikipedia as a legal reference which was edited and stated the exact opposite (incorrect information) as the black and white law did! It was an interpretation of copyright or trademark - it was just made up trash.

After I got through with eBay and Trust & Safety as well as VERO (who incidentally told me how to list the items in the first place ..) eBay STILL insisted I modify 100+ listings and remove the ability to make out of USA sales "just because they said so".

You tell me - is eBay on crack or what?

What company would punish its BEST sellers ?? TRSP ... makes no logical sense .... unless as I and alot of others have stated - eBay just HATES their sellers ......

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