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Thu Aug 28 2014 15:35:35

Seller Says eBay Should Change Minimum BIN on Auctions

By: Reader

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Dear Ina,
Ever since eBay changed the minimum BIN (Buy It Now) on an auction from 10% to 30% I have had an 80% drop in auction with BIN sales. (Note from the editor: eBay announced this change in March 2013.)

I was very happy with an extra 10 on some of my listings and would have sales after sale after sale with that 10% BIN. With the 30% BIN I get ZERO sales because no buyer with a brain is willing to pay 30% more to get something a few days early, and those type of buyers won't bid either so the result is NO SALE and NO BIDS.

I have no idea why eBay decided to make this sales killing change, but my guess is to get 20% more in the Final Value Fee, but 30% of nothing is still NOTHING.

I have given up on using a BIN for most of my listings so that at least my buyers don't believe I am trying to Rip Them Off for an extra 30%.

eBay has corrected sales killing errors in the past, and I would love that they correct this one and give me back my 10% BIN and my SALES.

After all "SELLING" is the reason for eBay, right?
Ron




Comments (27) | Permalink

Readers Comments

Seller Says eBay Should Change Minimum BIN on Auct   Seller Says eBay Should Change Minimum BIN on Auct

by: comet This user has validated their user name.

Thu Aug 28 16:08:05 2014

SAME HERE

Almost never get a sale with that absurd 30%,  trying to explain it to customers is almost impossible;  and hoping and praying that either the customer REALLY wants your item or that they REMEMBER to place a bid on the item---ugh!!!!

There is no "Happy medium"  on ebay--they have definatly forgotten that the purpose of the site is to make SALES and to DO that---people need to be able to BUY THINGS EFFORTLESSLY.  

About the ONLY thing I see results on this is for the ONE ITEM where I am the ONLY seller on ebay.  And even there a lot of times the buyer will either wait or snipe (I don't mind the snipe!) oe maybe bid and then not pay---and the difference between a reasonable START price and this 30% is SO vast that a lot of buyer are simply turned OFF.

I really DO feel your pain OP!!!!!

Seller Says eBay Should Change Minimum BIN on Auct   Seller Says eBay Should Change Minimum BIN on Auct

This user has validated their user name. by: Marie

Thu Aug 28 17:12:06 2014

That may or may not be due to the change.  Ebay traffic is down and has been down most of this year.  A large number of sellers are reporting this to be the worst year ever on Ebay.

For me, my sales are down by a solid 50%+ since late February.  And there are lots of sellers experiencing the same thing.

My opinion is they could drop it a little, but not even near what it use to be.  

While it may seem fair to the OP it isn't fair to other sellers with the same type or similar products.  If you want to run an auction with a BIN that is so close to what the auction price is, then run a BIN.  When a sell runs a listing as an auction with a low BIN, you drive down pricing for all the other sellers out there with the same or similar product.  So while you may like it, it hurts other sellers.

There is an art in to finding the right balance.  Personally I think 20 - 25% is fair.  I've always thought 30% was a bit high.

I do think there is a happy medium and I sincerely hope it is never brought down under 20%.

Seller Says eBay Should Change Minimum BIN on Auct   Seller Says eBay Should Change Minimum BIN on Auct

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

Thu Aug 28 18:43:26 2014

Ebay raised the BIN percentage because they perceived declining interest in auctions and thought they could increase their BIN revenue stream.

Virtually any of us could have told them that 30% is way too high.

Ebay's greedy roosters are coming home to roost and soon no amount of creative bookkeeping will be enough to conceal the truth from investors.

Ebay stock is worth no more than $40 a share even with PreyPal and a lot less without it and going down fast.

But as long as the payola continues the thieves and liars on Wall Street will continue to prop up the thieves and liars who occupy ebafia's executive suites.

20% to 25% fair?

Surely we all remember when we used to be to run our own businesses without constant interference and destruction from the godfathers?

Seller Says eBay Should Change Minimum BIN on Auct   Seller Says eBay Should Change Minimum BIN on Auct

This user has validated their user name. by: bitbybit

Thu Aug 28 19:12:40 2014

I believe the 30% BIN was done to coerce sellers into opening a fixed price annual subscription store with an early termination fee. As is stated often: follow the money..it is always about the money.

My OOAK, antiques, jewelry and collectibles do not do well at just fixed price. Unless you have hundreds or thousands of items listed, items seem to languish in best match, cassini or whatever manipulation hell.

I disagree with Marie where it drives down pricing. It doesn't matter whether you have auctions or just fixed priced items, ANY low price can drive down prices. Look at Walmart and even Dollar stores.

I agree with the OP. 10% or maybe 20% BIN on auctions. Having a minimum of 30% just kills sales and makes having an auction moot, which could be the point.

Seller Says eBay Should Change Minimum BIN on Auct   Seller Says eBay Should Change Minimum BIN on Auct

This user has validated their user name. by: Basset

Thu Aug 28 20:06:09 2014

The 10% BIN used to work just fine. Sometimes I'd be maybe 20% higher, depended on the item.

BUT - I can't remember even having an auction listing sell BIN since the 30% minimum started, and that minimum has been in effect for awhile!

Granted I don't do that many auctions and I do sell most listings as FP. Only auctions for clearance priced items seem to sell, if they sell at all.  

Seller Says eBay Should Change Minimum BIN on Auct   Seller Says eBay Should Change Minimum BIN on Auct

This user has validated their user name. by: Marie

Thu Aug 28 20:48:00 2014

@basset

Yes, 10% worked fine for many sellers, but was driving down prices for other sellers.  I too think the 30% is too high.  20-25 is plenty IMHO.

Seller Says eBay Should Change Minimum BIN on Auct   Seller Says eBay Should Change Minimum BIN on Auct

by: 1beck3 This user has validated their user name.

Thu Aug 28 21:25:41 2014

Think the point you're missing is,  if there was enough interest in your item to begin with, you wouldn't need to set a BIN price, the bids would drive up the price.  So, if you know you were selling so much better  with the 10% BIN and your sales are down,  why not figure what price you would start the auction at, add 10% to that price and just list it as a straight BIN,  no auction.  I mean,  you've identified what was working and you know eBay isn't going to change to accommodate you.  Adjust your strategy and start selling again. Sounds pretty simple.  

Seller Says eBay Should Change Minimum BIN on Auct   Seller Says eBay Should Change Minimum BIN on Auct

by: Annne This user has validated their user name.

Thu Aug 28 21:31:37 2014

Who cares what percentage they make us use... they shouldn't be dictating our prices at all!  It's none of their business.  I wish they'd remember they are just a venue.  

Seller Says eBay Should Change Minimum BIN on Auct   Seller Says eBay Should Change Minimum BIN on Auct

by: AgendaSwallowsAll This user has validated their user name.

Thu Aug 28 22:46:10 2014

There are those of us who have to adhere to a Manufacturer Approved Policy on pricing. Auction style in general is pretty much useless with the Cassini algorithm, who wants to wait 3, 5, 7 or 10 days to pay the same price the would on a BIN and if a MAP seller tries adding 30%, perspective buyers simply think that seller is an idiot possible never looking at their listings again.

To add insult to injury, we're forced to stare at John Donahoe & Co's ''suggested'' for items ''like yours'' when NO item ''like'' the one being sold is being offered with the grab from the sky ignoramus pricing they're suggesting. Same with their ''use our Catalog'', more than 50% of the time the item in their ''Catalog'' is nothing remotely close to the item we're selling, I'd have to assume this has something to do with the ignoramus price suggestions they come up with.

I'd say cease the micro-managing, let businesses run their business but there is something deeper going on here so I can't see that ever coming to pass.

Unless ebay had an up front agenda that needed to be accomplished be it of their own thought or directed by a group outside the fold, why would they hire an individual who knew and still knows nothing after all of these years about E-Commerce bringing a Bain & Co. Ideology to the Marketplace rather than having hired from within or at least an individual with an E-commerce Marketplace background.

I've said this multiple times in the past, there is something far deeper going on here for there isn't as shred of Real World intellect that says any move by Donahoe & Co. has had anything to do with the site becoming a stronger standalone Marketplace with an intent to create sales.

I don't know if it's nothing more or less than an Enron style investor and Wall Street okie-doke, a mind control breaking the Spirit of the masses experiment, a combination or maybe even something far deeper, whatever it is I can assure you there is far more going on than meets the eyes UNLESS of course Donahoe & Co. as it stands at this moment are nothing other than Buffoons who don't know any better.

Seller Says eBay Should Change Minimum BIN on Auct   Seller Says eBay Should Change Minimum BIN on Auct

by: comet This user has validated their user name.

Thu Aug 28 22:50:24 2014

@ANNNE--

What???  Just a---venue???  Well!  I never HEARD of such a thing!!!!

I liked the 10% because it separated the sheep from the goats;  allowed a customer to get what they wanted right then and there and only pay a bit more.  If they wanted to wait for the listing to run it's course that was fine too--they would just buy at the auction price.  However back in those Good Olde Days these items often DID generate auction action--no more of THAT for a LONG time.  

This also put an end to the really annoying people who either listed something at .01 CENT but had a BIN of $500.00;  or had a start price of $9.99 and a BIN of $10.00.  

10% was reasonable;  did not make it look like you were trying to scam the buyer;  and was easy to calculate. And it was close ENOUGH to the start price that if you looked at sold items you could place a start price that was competitive but not greedy and STILL have buyers.  

30% is driving AWAY sales using either format;  straight auctions are hidden in search;  if your items don't SELL using the 30% then ALL of your items are hidden

And of course ebay just rolls right on over sellers objections and cries for help and change.

Where IS that new auction based web site we keep waiting for????  

Seller Says eBay Should Change Minimum BIN on Auct   Seller Says eBay Should Change Minimum BIN on Auct

by: OnlyPollyPocket This user has validated their user name.
Web Site

Thu Aug 28 23:08:55 2014

Same here, 30% over minimum bid = no sale.

Good idea, Ron, think I will eliminate the BIN, just go for the auction.  Saves a BIN fee, too...lol, good job ebay, that will add to your bottom line, eh?

Seller Says eBay Should Change Minimum BIN on Auct   Seller Says eBay Should Change Minimum BIN on Auct

This user has validated their user name. by: shabbychick

Thu Aug 28 23:34:37 2014

Well, I have to ask myself why my 3 categories are excluded from the 50 free BIN listings. Collectibles, Clothing, Jewelry. Those are the only 3 categories I list in so the hike of 30% appeared to me to be a way of stopping me from getting around the ''auction only'' rule. If it were not for the 30% I could just use a BIN price like a BIN listing and get around that, even if it was only for 7 days instesd of 30.

I wonder why they selected those categories to allow only auctions (for free) ?  

Seller Says eBay Should Change Minimum BIN on Auct   Seller Says eBay Should Change Minimum BIN on Auct

This user has validated their user name. by: shabbychick

Thu Aug 28 23:39:36 2014

But isn't it a fact that if you do not have a buy it now fixed price then Google will not pick up any of your listings in Google search? It was my understanding that auction only items are never shown because they do not have an exact price. (Not that many Ebay items show up at Google anyway anymore).

Seller Says eBay Should Change Minimum BIN on Auct   Seller Says eBay Should Change Minimum BIN on Auct

by: Santini This user has validated their user name.

Fri Aug 29 00:54:23 2014

Glitchbay can't even manage their own site anymore yet they want to micromanage every transaction down to the smallest detail. Fine. Why don't they decide what the best time to start an auction is and I'll be ok with that. It can't be worse than their suggested starting prices.

Seller Says eBay Should Change Minimum BIN on Auct   Seller Says eBay Should Change Minimum BIN on Auct

This user has validated their user name. by: Ric

Fri Aug 29 09:25:03 2014

This is another example of bad policy written by management that does not use or understand eBay and who do not care if sales take a dive as a result.

ebay's ignorant management is ignorant enough that they believe one of two things....

One, management's inexperience has them wrongly convinced that buyers are willing to pay a 30% premium above a listed auction price thus they believe they will increase GMV with this change.

Or...

Two, they have fooled themselves into believing that sellers will lower their starting bids.

Of course, it never crossed the minds of inept management that the 30% BIN premium on auctions would actually serve to reduce sellers success and thereby lower eBay's GMV in the process.

If this management team actually bought and sold on eBay, they would have known from day one their attempt to boost GMV with a BIN premium of 30 % above starting bids was doomed.

Then again, this management team will not comprehend the error of their ways, and, as they always do when their decisions prove to be epic failures, they will simply blame sellers for the failure.

Seller Says eBay Should Change Minimum BIN on Auct   Seller Says eBay Should Change Minimum BIN on Auct

This user has validated their user name. by: Marie

Fri Aug 29 18:34:11 2014

@Ric

I'm not sure that the GMV is based on the BIN price on an auction style listing.  I believe it is based on the auction price unless it is purchased through the BIN.  Just sayin.

I know many feel the policy is bad.  But there are also many that do not feel it is bad.  I am one that thinks it is an good policy in theory but the threshold should be lowered to 20-25%.  I do feel that 30 is too high.

Seller Says eBay Should Change Minimum BIN on Auct   Seller Says eBay Should Change Minimum BIN on Auct

This user has validated their user name. by: Bill

Fri Aug 29 23:47:19 2014

It should not matter at all what anyone wants to sell at auction and what they want for buy it now. Any site that wants to make money should not stipulate what the price that some one wants to sell it for should be.
If they do not have the band width to spare then quit giving away free listings so they can get the numbers up to appease wall street so that the price of the stock will maintain a certain level to make money for the executives to be able to buy the stock from their options and be able to make a profit from it.
It is not a free and open market any more and they should be investigated by the FTC And the SEC for stock manipulation.

THAT is the bottom line.

Seller Says eBay Should Change Minimum BIN on Auct   Seller Says eBay Should Change Minimum BIN on Auct

by: MovinOn This user has validated their user name.

Sun Aug 31 12:37:43 2014

I agree there should be a difference, but 30% is a bit extreme. I remember before the start of the required 10% difference, some sellers would have an auction listing with the starting price and the BIN price the same. What is the point of that? Why have an auction? I see no reason why a buyer would bid at the starting price, and possibly get outbid later, when they could buy it now at the same price.

Why does it matter to the investors how much is listed, when most of it doesn't sell anyway? I would think they would be more interested in how much is selling. Having twice as much listed doesn't mean sales will be double.

I wonder what the overall sell-through rate on ebay is.  

Seller Says eBay Should Change Minimum BIN on Auct   Seller Says eBay Should Change Minimum BIN on Auct

This user has validated their user name. by: Philip Cohen
Web Site

Sun Aug 31 17:06:16 2014

"I wonder what the overall sell-through rate on ebay is."

Somewhat less than 10% for BIN (eforcity is running at ~7%), and those that are selling via nominal-start auctions and getting hoards of bids and have ~100% STR are most probably bidding on and buying much of the stuff themselves ...

The eBay executive suite, where the incompetent mingle with the disingenuous, the malevolent and the outright criminal, and the just plain stupid ... http://bit.ly/11F2eas

Seller Says eBay Should Change Minimum BIN on Auct   Seller Says eBay Should Change Minimum BIN on Auct

by: dkkdolls This user has validated their user name.
Web Site

Sun Aug 31 23:19:25 2014

I no longer do auctions with Buy-It-Now at all as I would either have to raise the price too much or start below what is possible. Most of my items are Buy-It-Now, but when Ebay runs a promotion I have a no. of items I have more than one of that I do put on auction starting 5 to 10 percent below the Buy-It-Now price. That is the only way I can afford to do it. Anyway sales are greatly down from last year, especially since the security breach in May. Yet, there's still a great many people who shop mainly there. When I run an auction it does not do much. Most buyers use Buy-It-Now. I sometimes do short-term 5 percent markdowns when there's no Ebay promotions, but I usually end up selling items BIN at full price. I do get quite a number of international customers form the safe countries I ship to (ones ShipSaver and/or Endiicia) will insure.

My best,
Donna

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