promotion percentages

[4pj]

Is it best to use the percentage rate eBay suggests when you want to promote your item?  9% seems quite high and takes quite a bit of $ from me in the end.   If you change to a lower percentage, does that mean you probably won't get on the "sponsored" line? 

[bajasierra]

I agree that 9 percent seems high.  I have been picking 5 percent, but I really have no rational basis for it, so I would like to know what others here think also.   I just read someone who seemed to think the entire "promotions" thin was scammish and something only newbies do.  Another seemed to be saying it was absolutely necessary - so understanding this would be helpful. 

[caldreamer]

When you have 1,000s of sellers trying to sell the "exact same item" it makes sense to promote items (so their item will appear at the front of the pack).   If you are selling "one of a kind items" it doesn't make a lot of sense (because your item will probably appear on Page 1 anyway).

Of course, if you promote at a higher % rate "you will get better promotion".     You have to decide if you want to promote items and hopefully sell items faster (but you will make less profit because you have to pay regular selling fees and promotion fees on top of that.   

[simply-the-best-for-you · Accepted solution]

It totally depends on what you sell & what your competition is.  You'll have to experiment to see what works for you.  It is definitely NOT all newbies who promote.  I know many old time sellers (I've been selling since 97) who promote.   

[tobiasness]

I have made several sales of arcane items that have been sitting a long time after promoting them, I am pretty sure I only did 3 or 4 percent. I assume that a higher percentage means a higher "boost" when key words are searched, but how the heck would we know?

    Can ebay say that if we promote something for 3% and something else for 6% is the higher one getting seen twice as much?

     One has to be careful, I had a listing for an item in the $60+ range that I had lowered the price on as much as i dared, I went ahead and promoted and after the sale I ended up with $1.50 profit! I can't complain as I really didnt do the calculation when I pressed the promote button, just be cautious. Clearly, the sellers doing the high percentage are raising the price to cover the cost

[kabilab]

Predicated upon my experience, I completely agree with the post of "simply-the-best-for-you."

[my-cottage-books-and-antiques]

   "Can ebay say that if we promote something for 3% and something else for 6% is the higher one getting seen twice as much?'

ebay cannot say that and ebay does not say that. What ebay says is a LOT of factors go into placement, and the rate is only one of them. 

Generally speaking, a higher rate will get you more impressions, but it not a mathematical progression-5% gets you z, 10% gets you 2X, 20% gets you.....NO. It doesn't work that way.

More importantly, PLS can improve your placement and your impression numbers, but if you have a crappy listing at a crappy price, PLS is no cure for that. 

TEST your way into PLS. Do NOT depend on high rates to get you sales. Many sellers do fine without it. Many sellers do fine with low rates. Figure out what your goal is, and figure out what you can afford. If your margins are tight to begin with, do not even consider a high rate. And keep in mind many customers are  price conscious. If your price is fair now, but you raise it by 50% to cover a 50% PLS, you probably won't sell it. You'll probably get more impressions, but you won't get sales. 

Personally, I never raise my prices to over a PLS. If my margins can't handle "x" rate at my current price, I'm not increasing the price to handle "x". 

This is business. Know your numbers. Test and learn.

[tobiasness]

My Cottage- very well said. thanks

[tobiasness]

Ok, what about auctions which aren't eligible for promotion? How do those get handled in the great maelstrom of listings that is ebay. Do stores get an advantage or your seller rating? The things I dont know.

[my-cottage-books-and-antiques]

Auctions have their own Promoted Listings tool known as Promoted Listings Express. I don't run a lot of auctions, and the couple times I actually tried this, it did me no good....just cost me money. 

You can read this:

https://www.ebayads.com/ad-solutions/ad-formats/promoted-listings-express/

One thing they don't mention: in my experience, the fee goes down as your listing gets closer to the end. So, if you are running a ten day auction, and ebay tells you the up front (non-refundable) PLE fee is, say, $3.99, you can wait until Day 5 of the auction before you add PLE, and by then it might be down to $1.99. 

Might be worth experimenting with, but I have had limited and unsuccessful experience with it. But you might have better luck if you want to try it.

As far as I know, having a store does nothing for your search placement. I'm not sure whether being TRS is factored into the search algo, but if it is, it is a very minor factor. I'm a TRS seller, my listings are TRS Plus, and I don't think it really helps much with search placement.

[siamjane8]

One of the biggest problems with promoted listings is that there is zero transparency. You are completely at the behest of a corporation that is looking out for itself and it's shareholders 100%. A corporation that has been in a steady decline for several years and is getting desperate. Consider that when you decide if they are designing these programs to help you sell more and grow your business or if they are just trying to move the maximum about of your money into their pockets. 

    Absolutely not coming down on eBay as a greedy corp etc...... I'm just saying sellers should be aware of what they are dealing with before forking over the majority of their profit margins to get a sale.

  They "suggest" high PL rates with no proof or any basis. They tell you to promote with no proof that it will improve your sales.... In fact the legal ease says it may not. Some sellers have even seen a drop in sales when promoting and then an increase again when they stop. 

    PL program have far more shady aspects to it than not:

1. halo listings for example that charge promoted fee for items that were not even clicked on as a promoted listing is the buyer had clicked on any other if your PL.

2. Know that your PL is not just on the she price of the item but they supply that to shipping and sales tax now

3. Absolutely NO proof of origins of buyer click through or from where- onsite/off-site etc, or if it is real or not

4. No guarantee of search placement or frequency or even relevancy of placement- often your impression go up because you listing is being "shown" more.... But are they really being seen more if they are in 1 of 6 carousels on someone else's listing page in a clutter of ads

5. The more people who promote.... The less any are actually promoted.... Actually leaving the non promoted listings to stand out better

6. It's sole purpose is to make eBay money. It does nothing to help buyers and effectively tells sellers thar ebay will not show your items as they have agreed to do for a fvf unless you pay them MORE in an extra PL fee!

Just some things to consider before jumping into the deep end with your hard earned dollars.

    Again, it may work for some, but every time I have tried PL in earnest, I have been left feeling cheated and frustrated and used and taken advantage of. Never have any of the campaigns produced results worthy of the cost.... Ever.  and that is out of thousands of listing over many different tries over 3 years. I will never fall for it again.

   Food for thought, but it might be right for you and what you sell in your categories...... My advice is to ease into it