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Question thread: Change to Promoted Listings Standard ad fee calculation

We’ll be aligning the Promoted Listings Standard ad fee calculation more closely with how we calculate final value fees. You can learn more about that here, feel free to ask any questions below! 

 

Please note that eBay experts will be present and engaging on the boards between 8 am and 4:00 pm PST on 2.9.

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Question thread: Change to Promoted Listings Standard ad fee calculation

Since We'll now have to pay a commission on ADVERTISING for sales tax and shipping only charged on the sale, maybe we should have the ability to opt out selling or promoting to high sales tax states. Paying commission on the sale price of an item is fine, but why should ebay profit on the shipping and sales tax on promotions. You are not promoting the sale of shipping and taxes. I agree there is a processing fee on all moneys handled, but it's not 12.5%, it's more like 2.5% in bulk. For low dollar items like I sell  ($10-25 items with $8-15 shipping +tax) this is a 50% or more increase in promotional costs.

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Question thread: Change to Promoted Listings Standard ad fee calculation

" So I STRONGLY urge sellers to NOT use "Free Shipping".... your sales will go down....don't believe me, test it yourself. "

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I have tested it myself several times over the years. The results were the same every time. When I added the shipping separately, my sales dropped to almost nothing. When I changed back to "free" shipping, even though the prices were higher, sales jumped right back up. Lesson learned. Too many buyers nowadays expect free shipping, and use the refinement to cut out all of those listings without it. Of course, a lot depends on what your competition is doing. But if your competitors are all offering shipping included, you'll drop out of the picture with added shipping, even though your prices are lower. Remember, the Price Lowest search results include shipping, whether it's included or separate.

 

Don't get me wrong - I hate the new way PLs will be calculated, and I probably will stop using them as of May 1. (Remember, those clicks are good or 30 days.) But those of us who offer free shipping will suffer less of a sticker shock from the new calculation.

 

That brings me to another point: When someone clicks on an item and buys it 30 days later, we are charged the PL fee based on the rate we were charging at the time of the click, even if it has since been removed or lowered. So . . . wouldn't it also be fair to calculate our fee based on the rate (item price only) charged when the buyer clicks? So if they clicked May 15 and bought the item June 10, it would be calculated the old way. If one is fair, so is the other!!

 

Message 47 of 49
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Question thread: Change to Promoted Listings Standard ad fee calculation

How will this affect promoted items sold through the GSP? Normally, GSP sales are considered domestic since we're shipping only to Kentucky. We never even see the international shipping cost, and the money never passes through our hands. Will the new PL fee on those sales be based on the international shipping cost and import charges, or just the domestic shipping like our FVF? Thanks!

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Question thread: Change to Promoted Listings Standard ad fee calculation

Hi everyone! These threads are closed from further replies. If there are outstanding questions that we are waiting for additional information with, we will update the thread with the response we receive and tag you to make sure you get the notification.

Velvet,
eBay
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