Dynamic Ad Rate

[meme6253]

Is anyone using the new dynamic ad rate, Or intend to?

[my-cottage-books-and-antiques]

I'm using it. Been using it since back when it was called something else.

[myfrugalboutique]

This is “pay per view”.  ??i would love to know how it works for you. Have not tried it.

[slippinjimmy]

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@myfrugalboutique wrote:

This is “pay per view”.  ??i would love to know how it works for you. Have not tried it.

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It is not "pay per view", it's simply an automated way to ensure that the rate you are using will always be as high or higher than what other sellers are offering to pay.

Unfortunately on eBay there are too many sellers that are willing to pay outrageous percentages which drives up the suggested rate which will affect YOUR Dynamic rate.

[chapeau-noir]

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@myfrugalboutique wrote:

This is “pay per view”.  ??i would love to know how it works for you. Have not tried it.

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Pay per click is a different program (they're multiplying!) - this is a variation on PLS, only instead of setting a static rate, one's rate is indexed to trending. I've been fiddling with it and have not noticed my return on investment to have been lowered using it, but jury is still out as far as I'm concerned.

[redlinear]

The issue with Dynamic add rate:  
eBay says for this item, today, right now...the trending rate is 9%.   Dynamic makes sure you are where everybody else is that's doing it.  (might be a little more than 9%).
BUT, you want to be more visible than everybody else.
So, you set it up at 1% more than dynamic.   Now you're at 10%.
  BUT, everybody else thinks the same as you.  
Now we are climbing.
You better have set a limit, because it will be on that limit quickly.

[my-cottage-books-and-antiques]

Pay Per View is Promoted Listings Advanced.(PLA) This is NOT PLA.

This is Promoted Listings Standard (PLS) : pay only if the item sells , and the sale is attributed to Promoted Listings.

You can set up PLS as a flat rate. (The minimum is 2%, you choose the rate) Let's say you choose 10%. Your item sells via PLS, ebay charges the 10% on the total sale amount (item price, shipping and sales tax) just as with the FVF (which, of course, you will also be charged).

ebay provides daily suggested rates for items. The rates can go up or down, but they are just suggested, you don't need to use them.

Let's say, instead of flat rate, you choose this newfangled Dynamic Ad Rate (DAR). The DAR means you authorize ebay to use the ebay suggested rate each day. So if the suggested rate today is 5%, ebay uses 5%, if tomorrow it is 6%, ebay uses 6% tomorrow, if the following day it is 4%, ebay will use 4% that day, etc.

What seems to alarm people who have not taken the time to understand how this works is, they look at this and say, but what if ebay's suggested rate the following day is 80%!!!!!! I could end up paying 80%!!!!!

And yes, that could theoretically happen IF you don't do what common sense tells you to do: you set a cap. So, let's say you set your cap at 10%. That means ebay is authorized to use the suggested rate each day, but IF the suggested rate exceeds 10%---let's say it is 15%----ebay will use the capped number instead (10%). So, no matter what the suggested rate is, your rate will never exceed 10%. It can be lower, but it can't be higher. 

If you were going to use a flat rate of 10% (which would mean every day is the same, 10%), but instead you go with a dynamic rate capped at 10%, that will mean that some days will be 10%, some days might be LESS than 10%, and you will never be more than 10%.

[hollysfinds]

As I have said many times, promoted listings in any form is just a money grab.

If everyone is promoting then NOTHING is promoted.

I don't use it now at all.

When I did try it I saw no significant difference.

If it works for some people good for them.

[my-cottage-books-and-antiques]

There's one other facet to this:

You can cap the rate, but you can also set a percentage for ebay to add or subtract from the suggested rate. So, you cap at 10%, but you also tell ebay to add , say, .1% to the daily rate. So, if the daily rate is 6%, you are authorizing ebay to go a little higher, to 6.1%. Or you can set it to be less, so , for example , -.1%, in which case ebay will use 5.9% rather than the full daily rate of 6%. 

And, since you are capped at 10%, if , for example, the daily rate IS 10%, ebay will NOT add the .1% (but will subtract .1% if that's what you instructed.)

Whether you want to add or subtract depends on whether you think its important to be above the daily rate, or whether you think for your merchandise you will likely do just fine with something less than the daily rate.

(Here it is important to remember that the rate is NOT the ONLY thing ebay looks at when deciding on placement, so having a higher rate is NO guarantee that you will do better with the higher rate...as some sellers who have tried rates like 50% have discovered...

[meme6253]

It's The Theoretically That Alarms Me!

[my-cottage-books-and-antiques]

@meme6253  NOT if you use a cap. 

Do you understand that?

I can set my cap at, say, 5% and that means I won't be charged MORE than 5%. Period. 

There is nothing alarming about this.

[meme6253]

Well It is a preference, & I prefer not to!

[my-cottage-books-and-antiques]

Well, that is up to you.

I have explained how it works.

You can use it or not, same as regular PLS.

[theteamsetguy]

@slippinjimmy ,

If 10% is good 20% must be twice as good. 

[shar_27]

So what happen if eBay trend rate for certain item is 10% today. and My Cap set to 9%.
Does that means my item would not get promoted at all today?