
eBay finally published its new affiliate marketing rate card, and feedback from participants in the eBay Partner Network program (ePN) indicate that traffic to the eBay site could be a casualty. The disincentive to drive shoppers to eBay comes at a time when eBay marketplace sales growth has been stagnant.
"eBay is changing how it pays affiliate marketers for traffic and will publish a new rate card for the eBay Partner Network (ePN) program that takes effect this fall. The biggest change is how the payouts are based - instead of paying affiliates a percentage of eBay revenue (fees it collects from sellers), it will pay a percentage of sales (presumably the selling price or total transaction value)."
ePN members have been frustrated at eBay's delay in publishing the new rates, and some expressed disappointment today that it waited until the 4th quarter as buyers are already gearing up for holiday shopping.
Initial feedback from affiliates indicate many estimate a 30% or more drop in revenue under the new rates. One problem with the new rate card: they don't map to eBay's category structure, leaving affiliates to guess the impact of the rates and wonder if they'll be compensated at a mere 1%.
eBay Director of Business Operations & Partner Success Michael Lill was featured in an
interview on the ePN blog, where he said, "Many partners may see a small change in earning" as a result of the new rate card.
Lill used an example of a Magic the Gathering box set that he said sells for $235 on eBay.com.
Under the current rate card, partners would earn 50% of eBay take rate revenue (which is about 8% in this case, or $18.80).
Under the new rate card, partners would earn 4% of the sale price, or $9.40.
We did the math: that's a 50% decline in revenue. (As we proofed this post immediately after hitting the publish button, we realized he may have meant affiliates would currently receive 50% of the $18.80, which is $9.40 - meaning the rate would remain the same in that example.)
We couldn't spot a date for when the new rates take effect, but a notice on the ePN website says eBay will be rolling out a new platform on October 23.
If affiliates are confirmed in finding that their efforts to promote eBay become less lucrative with the new rates, they may devote their efforts promoting traffic elsewhere, which would be bad for eBay and for eBay sellers.