Suggsted promtional percentage getting out of hand....

[partsofused]

Anyone else not use the "suggested promotional" percentage and use a lower one? That has also seen a significant drop in sales? If it recommends 12.8% I put 3 or 4%. Every listing has at least 3%. If we do the suggested that's sometimes 16%, that's over 25% of the sale going to fees. I say either remove the standard final fee or remove promotion suggested margins.  Something has to give.

[chariot_badges]

Every store, every inventory, every owner is different.

There is no 'one size fits all' answer to this or many questions.

I am very aggressive (generous, foolish, pick a verb) in my advertising.

If I can spend $1 and make $2 I will do it all day long.

Looking at my metrics I see that last month I spent $77 in promotional advertising, and it made me an extra $970.  Seems like a fair trade to me.

That said, what I do is a set number, double digit, I go under that if it is suggested lower.  

The choices you outline above are choices we all have had to make, and actually make every day. 

Try different stuff, measure cause and effect.

In a year or two you'll have your answers.

*I JUST NOTICED  that we sell the same inventory.  And you been doing it longer than me (here, anyway).  You should have a better handle on things than me! 

So ... salute to my direct competition.  

[hartungcards]

eBay is planning to remove those fees when it's cold enough to go ice skating in he11.

[selsa84]

Second Tuesday of next week

[ebooksdiva]

I ignore eBay's suggestions on everything....because it's just a suggestion. 
Use your best judgment.

[hartungcards]

So, are you saying that when you end a listing and eBay suggests lowering the price by $10 and relisting it, you just ignore that?

[dolcetreasures]

I’m seeing suggestions as high as 19.8% which is absolutely impossible. Everything is now between 12-18% otherwise which is bonkers considering how little traffic there is. 

[brightlightbookseller]

We never promote over 2%, and it works in our categories.  I imagine it wouldn't in a more saturated market, but we've been happy with it.

[luckythewinner]

Anyone else not use the "suggested promotional" percentage and use a lower one?

There are 20 million sellers here.

Some sellers are using lower rates.

Some are using the suggested rates.

Some are using higher rates.

Some are not using promoted listings at all.

I say either remove the standard final fee or remove promotion suggested margins.

I say just ignore the suggested rate if it does not work for you.

[mordecai8614]

 I don't promote

[brightlightbookseller]

I'll add, my understanding is that the suggested rates are actually based on what other sellers are doing, though it'd be hard to prove either way.  My guess would be eBay is saying that's what's needed to beat the top offer currently in that category or on what it considers similar items.  That would be in line with previous eBay decisions on things like that, as it drives up the ad rates and makes them more money while leaving them some plausible deniability about having manipulated anything, because they can just say they were showing it based on what sellers were doing.

[pls-consignments]

When PL started, I remember several threads of prognosticators predicting the long-term consequences of this. I think its safe to say that we are now seeing the fulfillment, especially as it becomes more difficult for eBay to rely upon it's GMV and fees to generate revenue due to (fill in the blank). As a result, the only way to offset lost revenue is to push sellers to increase their ad spend. Fortunately for sellers, this is still "optional".  🙂

[adamcartwright]

@hartungcards  

The seller needs to evaluate eBay's suggestions based upon his own timetable.

eBay is pushing for fast sales.

Think of eBay as a real estate listing agent who's pushing to lower the price for a fast sale.

But the seller isn't in a hurry to sell and has a lot more to lose by lowering the price than does the agent, who would only lose a small percentage of commission.

So, yes, a seller who's in it for the long haul may decide to ignore eBay's suggestions.

[selsa84]

I never base my prices off eBay suggestions. Nor do I use the "suggested " ad rate.  I'm in this to Make money not give a majority to eBay in fees. 

[redlinear]

suggested rate "appears" to be "more" of a category thing than an item thing. (but who knows for sure).
  I think some sellers promote certain items BIG and that tends to raise the suggested rate for the whole category including items that really can't be promoted big.
If I add an item as BAIT with an exaggerated price and a 50% promotion... I think that raises the suggested rate for the whole category.   AND, even if that's not correct, it for sure DOES raise the suggested rate for that item or similar items.  
My intention isn't to actually sell said item at all.
My "bait" item stands a good chance at making other sellers lose money on like items if they don't pay close attention to their promotional settings.