eBay Runs Summer Promotion to Attract Higher Value Items
By Ina Steiner
eBay is running a couple of versions of a month-long promotion in which it will cap Final Value Fees at lower amounts instead of the usual $250 - but only for those sellers who receive an invitation to the promotion. While the promotion is clearly meant to encourage sellers to list higher-value items, some sellers believe it is also a sign that some aspects of eBay's new fee structure rolled out in the Spring could be having a negative impact on product selection or even on revenue.
The new promotion runs from July 15 - August 15, 2013, and allows sellers to list fixed price and auction listings and pay a maximum Final Value Fee when the items sell for any listings created during the promotion period. One version of the promotion has the maximum FVF set at $100, another has the maximum FVF set at $150.
Sellers who qualify will have received an email and/or a message in My eBay. The promotion is activated with the seller's qualifying eBay User ID and is not transferable. According to the Terms and Conditions for one of the promotions:
"Sellers will pay a maximum cap of $100 on the Final Value Fee for all items listed during the Promotion Period. Final Value Fees will be applied to the total amount of the sale including the cost of the item, shipping, and any other fees a seller may charge - excluding any sales tax. Note that existing Final Value Fee rates still apply, but the maximum cap has been reduced to $100."
A seller discussing the promotion on the eBay discussion boards wrote, "I think this promotion shows that they utterly killed high end sales with their spring FVF changes. In fact, I predict we'll see more erosion in this zone, a reduction in the FVF on items in the $500..$1000 range, which are far more important to ebay than $2500 items."
Another seller wrote, "By gutting the tiered FVF structure, they imposed the biggest fee hikes on sellers who had decent sell through and sold higher value items... these people are obviously much better revenue generators than people who sell cheap stuff, or have very low sell through. Lowering the cap is only helpful on items over $1,000 or so though... Obviously, eBay sees higher fees producing lower revenue, or they wouldn't be doing this. They don't seem to be able to think pro-actively based on logic, only able to react based on revenue data - they don't understand their business or their clients."
The promotion does not apply to Good 'Til Cancelled durations; all existing selling limits as well as category and item limits apply; and all other fees apply - see the eBay website for details and restrictions:
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About the author:
Ina Steiner is co-founder and Editor of EcommerceBytes and has been reporting on ecommerce since 1999. She's a widely cited authority on marketplace selling and is author of "Turn eBay Data Into Dollars" (McGraw-Hill 2006). Her blog was featured in the book, "Blogging Heroes" (Wiley 2008). Follow her on Twitter at @ecommercebytes and send news tips to firstname.lastname@example.org.
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