Brace for Higher Fees After Adult Category Eliminated

[m60driver]

Yep, there is no way that Ebay and Iannoe are going to be able to make up for the revenue stream that will be lost due to Ebay eliminating the adult category.  That was a big category that generated a significant revenue stream.  I suspect that the next seller update will include a significant fee increase for one and all to compensate for the lost revenue.

Iannone seems to be maintaining his path of failure by cutting revenue for no clear reason.  He did the same thing in a much smaller way when he failed to increase free listings for starter stores making them valueless.  The man needs to go.

[reallynicestamps]

Is the category actually being eliminated?

I gather the problem with Adult items is that Ayden/ Managed Payments, like Paypal, will not process payments for them.

How did sellers in those categories get paid ?

There was a short-term period during which Coins and Bullion could not be handled by MP.  This seems to be resolved after a few months of confusion.

[eunster1313]

Marketplaces Reveal CEO Compensation: eBay, Amazon, Etsy

https://www.ecommercebytes.com/C/blog/blog.pl?/pl/2021/5/1620261220.html 

[coolections]

Not sure of the actual impact, but eliminating porn will probably not affect Ebay's bottom line as you think it will.

[crowley50]

I am assuming that eBay will not back down on eliminating the adult only category. The problem that I have with their new policy is that the wording is so vague. Provocative pose - showing genitalia - these are things that happen in R-rated movies. I actually had an R-rated movie removed and a 3 day account restriction about a year ago. So eBay is going to case by case decide who can list this soft core material and have no real way to be consistent. I don't understand why they can't just stand by the motion picture association rating and not get into banning R-rated movies. What about the soft core DVDs that were mostly in the Adult Only section before? I do see some of them listed in the regular eBay DVD section. How do some sellers get away with listing them here, but other sellers have them removed and get account restrictions? They need to give language in their "policy" that clarifies things and not leave everything up to individual interpretation by their employees. They can't and won't be consistent. It is very frustrating and unfair.

[luckythewinner]

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@m60driver wrote:

 I suspect that the next seller update will include a significant fee increase for one and all to compensate for the lost revenue.

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That's a bit vague - eBay has increased fees almost every year.

They raised overall fees by more than 1.5% just a month ago (from 12.35% to 12.55%). 

Give us your prediction of what a "significant fee increase would" mean.

Raising overall fees by 5%?

By 10%?

By 15%?

[m60driver]

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@luckythewinner wrote:

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@m60driver wrote:

 I suspect that the next seller update will include a significant fee increase for one and all to compensate for the lost revenue.

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That's a bit vague - eBay has increased fees almost every year.

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 Yes, a bit vague but the point was that Ebay will have lost revenue that will need to be replaced.  I do not know exactly what the amount of protected revenue loss might be nor what fee increase would be needed to replace the lost revenue.  I highly doubt that it would be anywhere close to 5%, probably just an additional 1/4% spread across all sales, maybe less, but I expect more than the standard fee increase.  Some may have the margins to absorb the increase without blinking.  For others it may be fatal. 

Iannone came from Walmart where they have no problems putting immense pressure on vendors.  I talked to one of my former vendors who spoke to Walmart and he was basically told how much they were to charge Walmart with Walmart setting their wholesale prices.  There is plenty more room for Ebay to squeeze seller's margins.

[slippinjimmy]

Not so sure about a fee increase for this particular reason. No doubt about it "adult" has contributed greatly to the bottom line especially in the early years and although ignored by most it's still very profitable. No way to know but it's likely their has been no growth in that Category for many many years.

As far as incremental fee increases, doubt there will be any in 2021 but I won't be surprised if we see some twiddling in 2022.

Or maybe the foray into NFT's will bring in so much cash eBay will give the rest of us a break from "good news!".