Pay-to -Promote

[brightfuture50]

I'm newer at selling (long-time buyer), and I'm testing the waters with the whole pay-to-promote thing. My question is this, isn't it likely that a seller will increase the price a little if they chose to pay-to-promote? I mean, that's what I feel like doing if it comes to that. Yes, I know it depends on what you're selling. I'm selling collectibles with a known following, so I know I don't necessarily have to pay-to-promote to get found. But, I may sell other things, so I'd appreciate knowing opinions across the board. 

[slippinjimmy]

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@brightfuture50 wrote:

Raising prices somewhat to compensate for advertising costs is standard practice with all retailers worldwide, so why should it be different here? Ever notice in life how the longer an ad is the more the bottom line is? 

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It's only different here because it's a place unlike any other, eBay sellers (who are not sellers of brand new goods) are the most price raising merchants I have ever encountered, I saw similar stuff at B&M dealers decades ago before the internet.

If you have to pay more for shipping, you raise your shipping rates, if the cost of whatever you are buying to resell goes up you raise your prices, but if you spend more on eBay fees you do nothing except whine about how you can't make any money.

I suspect the reason is that the profit margins, especially for collectibles and used goods is so high that small increases are not an absolute necessity as they are for slim margin goods.

I admit that I am hesitant to raise prices but my prices are governed by market forces and I like to be at the lower end (not the bottom) when there is direct competition. I was checking a few of my listings earlier today and was surprised to find that on a couple that seemed to be selling better recently it  is probably because I'm the only one on eBay with the specific item and/or condition (I wasn't a year ago) I adjusted those prices upward for no other reason than I like money.

Somebody upthread posted: "Ebay frowns upon the idea of raising your prices to offset the difference"

This is absolutely incorrect, what eBay frowns upon are Sellers that jack up their prices 25% and then do a Markdown  Sale of 20%. In some jurisdictions this is an illegal practice. You might fool some buyers with that strategy but smart ones know what you are doing and won't be fooled. Some of those will switch to other more honest sellers, and those sellers might be elsewhere and not on eBay at all. Personally as a consumer, false discounts are one of my most despised practises, if I detect it I am gone.

eBay assumes that when legitimate expenses increase prices go up by a comparable amount.

[mam98031]

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@brightfuture50 wrote:

I'm newer at selling (long-time buyer), and I'm testing the waters with the whole pay-to-promote thing. My question is this, isn't it likely that a seller will increase the price a little if they chose to pay-to-promote? I mean, that's what I feel like doing if it comes to that. Yes, I know it depends on what you're selling. I'm selling collectibles with a known following, so I know I don't necessarily have to pay-to-promote to get found. But, I may sell other things, so I'd appreciate knowing opinions across the board. 

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@brightfuture50 

Welcome to selling on Ebay.  I hope you build yourself a nice little business.

IMHO you really should not even be considering this at this time.  You are a new seller and you have so much to learn.  You may not think you do, but selling on Ebay and staying within the rules is a complicated process.  I highly recommend you learn HOW to sell first.  Then in a few months look at considering Promoted Listings.  

One of the biggest issues I see new sellers run into is that the assume too much.  Maybe because something seems logical to you so you handle a situation within your beliefs.  But that often is not the way the Ebay process is or the rules.  I've seen good sellers seriously hurt the health of their selling accounts because of it.  Honest mistakes for sure, but still serious stuff.

I know you may think you have a handle on this, but I assure you that you don't.  We will be here for you as you run into things you need to learn about but you should do your own homework too.

Here are some important links to areas you should really take the time to learn about as a new seller.

https://academy.ebay.com/student/catalog?locale=en


https://www.ebay.com/help/selling/selling/selling?id=4081

https://pages.ebay.com/seller-center/get-started/seller-fees.html

https://pages.ebay.com/seller-center/service-and-payments/funds-availability.html

https://www.ebay.com/help/selling/getting-paid/getting-paid-items-youve-sold/pending-payments?id=415...

https://www.ebay.com/help/listings/creating-managing-listings/creating-listing?id=4105


And make sure you know this policy extremely well.

https://www.ebay.com/help/policies/ebay-money-back-guarantee-policy/ebay-money-back-guarantee-policy...

[meme6253]

Yep, It's what is currently Killing the collectibles market, Way to much Desperation for a sale,any sale!

[mam98031]

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@meme6253 wrote:

Yep, It's what is currently Killing the collectibles market, Way to much Desperation for a sale,any sale!

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This happens with all kinds of things for sale, not just collectibles.  

[pls-consignments]

Sounds simple, but which expense do you think eBay is giving the most exposure to?  I've personally tried many things since PL began. I can't speak for others, but I've noticed that seller-offers, store discounts and coupons no longer impact sales since PL started. 

[reallynicestamps]

@mam98031 One of the biggest issues I see new sellers run into is that the assume too much.

Another is thinking like a buyer instead of a merchant.

Many sellers here have never worked retail, even as a clerk or cashier. They have a customer mindset.

This leads to an unwillingness to raise prices, even when it is necessary, and to a race to the bottom.

@pls-consignments  I can't speak for others, but I've noticed that seller-offers, store discounts and coupons no longer impact sales since PL started. 

That is also the (very preliminary) results that a Canadian seller, with decades of experience in mail order, even pre-internet, has found.

He isn't ready to publish any results, but has spoken about his data collecting on eBay Canada.

The difference, in my opinion, is that without PL those discounted prices were found, and with PL those listings are lower on the Search.

Not everyone uses "Lowest Price " as their Search. It would be interesting to know how many buyers even know there are other Searches available and also how many settle for the default Best Match.

[ebeths_eclectic_collectibles]

I think in most states it is illegal to raise the price just to put it on sale. Usually an item has to be at the higher price for a set amount time before it can be on sale. The fine print usually is something like “reg price may not have resulted in actual sales”. 

Some categories like furniture and mattresses that absolutely no one pays full price on are required to be regular price for a specified amount of time each year. 

[ebeths_eclectic_collectibles]

The collectibles market has been depressed for years. Lack of demand is killing this market. First eBay was a gods end. If you owned an Antique or collectibles shop you could all of a sudden sell off things that sat on the shelf for eternity. Instant access to national and global markets. Then, of course, your local customers found they could also find what they were looking for without shopping with their local dealer and this probably brought prices back down. 
Of course things like Hummels and beanie babies will never recover and some categories got depressed due to authenticity issues.

The ultimate best scenario would be if some powerful influencer took a liking to a certain kind of collectible

[kraftique]

I use to use to get top exposure. I look at completions price and lower mine just a little.   I would get the sales and people would look at my other items.  You can just do some select things. I did it with some pricey craft kits and it worked.

[thelongball]

If you despise false discount practices - Where do you buy Furniture at?

I spent 35 years in that industry and whenever a customer would ask me when our sale started - I would just reply saying 35 years ago. That way I did feel like I was part of the lie.  How they kept it legit was when a item was advertised they would drop off the .95 on the price, So 399.95 turned into 399.00 and they could legally advertise it as on sale because the price was lower than the day before. 

Ever wonder how come your luck was always so good that you always seem to need something and when you walk into a store it just happens to be on sale that day. How Amazing. Welcome to the Retail World.

First thing you learn in retail is you can say whatever you want, but it's in how you say it. 

[thelongball]

Abve was supposed to go top Brightfuture50 - My bad

[5594shelleys]

Succinct!  Thank you.

[mam98031]

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@ebeths_eclectic_collectibles wrote:

The collectibles market has been depressed for years. Lack of demand is killing this market. First eBay was a gods end. If you owned an Antique or collectibles shop you could all of a sudden sell off things that sat on the shelf for eternity. Instant access to national and global markets. Then, of course, your local customers found they could also find what they were looking for without shopping with their local dealer and this probably brought prices back down. 
Of course things like Hummels and beanie babies will never recover and some categories got depressed due to authenticity issues.

The ultimate best scenario would be if some powerful influencer took a liking to a certain kind of collectible

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That is likely mostly due to younger people not collecting the same things as older people have in the past.  As your buyer group ages out, you don't have younger ones to take their place.  You need to research and see what younger people are collecting and adjust as needed.  That would likely be helpful.

[meme6253]

Short & to the point!, Your Welcome!

[mam98031]

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@meme6253 wrote:

Ebay frowns upon the idea of raising your prices to offset the difference, But I do it & you should to, Actually everyone should!, They don't care about our profit margins, Only Theirs, So we have to look out for ourselves!

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I've been here a very long time and I've never had Ebay "frown" at me for raising pricing.  No emails, nothing has been sent to enlighten me as to their desire to have me lower pricing.  I raise pricing every time carrier costs go up.  USPS as a slight change happening later this week and then again in January.  My prices will be adjusted accordingly.

It isn't that Ebay doesn't care about our profit margins, it is that they do NOT set the prices we sell stuff for, they leave that to the Sellers.  Not everything is Ebay's fault.

Now certainly as vendor pricing goes up which causes sellers the need to raise pricing at some point it may not be cost effective to sell those items on Ebay.  This is something a seller has to keep track of and do what is best for their little business.