eBay is running a promotion to encourage sellers to list auctions - but sellers must start the auctions at low starting prices on order to get the Final Value Fee discount. Here's a blurb from the promotion terms and conditions:
"Invited sellers ("Sellers") who activate the offer and then create a listing in the auction-style or auction-style with Buy It Now format, within a Qualifying Category* at a starting price below $5, pursuant to the terms and conditions set forth herein ("Qualifying Listing"), will receive a 40% discount on final value fees for up to 100 items that are listed and sold during the Promotion Period (the "Promotion"). Auction-style items must be listed without a Reserve Price to be eligible for the discount. The Promotion excludes items with the Reserve Price feature added."
eBay climbed to success thanks to its auctions, but as we reported in January, auctions now contribute only 13% to eBay's Gross Merchandise Volume. (eBay will no longer break out auction format growth when releasing its financial reports each quarter.)
Sellers once embraced the 99-cent starting price for auctions, but now, many sellers say they simply don't get the bidding activity to justify listing auctions for low starting prices.
So it wasn't surprising to see the reaction to eBay's promotion - plenty of sellers said they had no interest in participating, and some sellers called it an insult. One seller was more positive, saying that while the promotion would not work for common items, " for others it is a great deal and a good way to bring back buyers and sellers to the auction format."
You can find the description of the promotion on this page
on the eBay website - note that it's by invitation only. There are some things to keep in mind if you are interested in participating - it's restricted to certain categories, and you must first activate the offer. Special callout: this only offers a discount on FVFs, it does not apply to insertion fees. (Usually promotions include free listings.)
Did you receive an invitation, and will you be participating?
How would you reinvigorate auctions on eBay?