Promoted Listings Standard - Ad Rate Minimum Increasing (1% to 2%)

[wastingtime101]

Got this e-mail from eBay:

We're continuously evaluating the performance and impact quality of Promoted Listings Standard as a tool to drive seller success. As part of this work, effective July 11, we’ll be changing the minimum ad rate for Promoted Listings Standard from 1% to 2%. While we recognize this impacts your business, this change will ensure your campaigns remain competitive in reaching buyers in our growing marketplace, and also allow us to deliver products and services that drive best-in-class returns for eBay sellers.

Just in the past year, we’ve added new Promoted Listings Standard features like an all-in-one campaign dashboard and downloadable reports that provide sellers with a convenient way to review important campaign data. On July 11, we’ll be rolling out a new feature that’ll allow sellers to edit multiple listings at once for both Bulk and Simple campaigns. This’ll make it quicker to adjust ad rates versus having to make manual changes for each campaign.

And there’s more to come.

Next steps

We’d encourage you to adjust your ad rates that are below 2% on or before July 11 to 2% or higher so that your promoted listings can continue to appear in advertising placements across the eBay network. If you decide not to make any changes, those listings will still be active but won’t be promoted.

[nuclearomen]

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@ittybitnot wrote:

 so it's really that ebay should looking for ways to help buyers keep coming to make purchases..

@nuclearomen 

They had one...it was called eBay Bucks.   Unfortunately, the drawback was that it was funded by eBay.  

Presently, eBay is moving to the "funded by the seller" model.  Wait for it, eBay is NOT finished. 

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i guess, even though ebay bucks was worthless in it's own unless buyer purchased a lot money wise. And of course they aren't finished, they are never "finished" they manage to crowbar more insults every few weeks now, use to be every quarterly update but i guess all that covid time out of office gave all those ebay employees time to brain storm entire lists of how to reap every possible cent from it's member sellers. This is why I said further in this thread that the raise to the PLS of 1% minimal is likely pre-course to raise of FVF's coming by end of the year again. 

[amricons]

All in all, it is just a fee increase with no benefit. If every seller stops, nothing changes via the position and if everybody pays the extra fee nobody gains via your position ie results.   None of the recent revenue grabs will help the top line but designed to help bottom line at the expense of the seller.   

[nuclearomen]

@valueaddedresource @wastingtime101 
An additional thought, was thinking (lol, sometimes that's a dangerous area) but wondering how ebay's latest take to social media apps like tiktok etc... and them obviously paying those companies to run ads on their networks is partially contributing to fee increases to their sellers (flipping that cost onto us)...any thoughts to that? 

[amricons]

But if it does sell w/0 promo from eBay do you still pay the 1%. We asked but did not get an answer.

[byrd69er]

EBAY now gets zero of my sales.  ZERO!!!  They pushed the wrong buttons too many times.

There is greener grass outside the fences....much greener.

[my-cottage-books-and-antiques]

@amricons Admittedly, this is just a guess, but I'd say the 30 day rule will continue to apply. So, on and after July 11th, your 1% listing simply will not be shown as a promoted listing, but will only show as an organic listing. However, as an example, if your 1% promoted listing was clicked by a buyer on July 10th and purchased on July 20th, I'd guess you will be charged the 1% promo fee. 

[the-hook-and-the-loop]

Maybe Jamie Iannone is retiring from Ebay soon and just getting his severance package in order. I think the last guy walked away with somewhere in the high tens of millions of dollars. $75,000,000 possibly. I think they call it a golden parachute in business.

I would **bleep** on it.

[jewelsofnature]

I am guessing that Ebay examined the numbers and too many people are using the 1% ad boost and they figure that they will make more money by moving the minimum to 2%. They know many will stop using this feature, but as long as at least 51% of the 1% ads accept this and move to the minimum of 2%, the results of this are profitable to Ebay.. Either way.. this doesn't help Sellers/Ebay relations..

Almost all my listings are at 1%, but I do have a couple that are 2% to 3%. All of my items using the 1% advertising will be changed to 0% advertising. Ebay should give an in-depth explanation to this policy change, because without one, this looks like it was motivated by nothing but Greed...

[nuclearomen]

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@the-hook-and-the-loop wrote:

Maybe Jamie Iannone is retiring from Ebay soon and just getting his severance package in order. I think the last guy walked away with somewhere in the high tens of millions of dollars. $75,000,000 possibly. I think they call it a golden parachute in business.

I would **bleep** on it.

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a CEO's role in a company is always in question, but usually when things are winding down for a CEO and their time is coming to an end there is quite a bit chatter prior....and I haven't heard anything "official" in that area so doubt it's that. 

[d-k_treasures]

I suspect those will also be slow to catch on with sellers so....they've decided to milk the one cash cow that has done all the heavy lifting (PL Standard) even more.  Unfortunately old Bessie can only take so much and I'm afraid eBay may be nearing that tipping point.

Cow tipping has become a national pastime.

[amricons]

We asked over 30 days ago and the final answer was the later with no answers on many other questions we asked.  Note that it comes after they decided that they are also promoted your shipping and sales tax etc.  On shipping it becomes a 3rd slice of that pie. They get a cut from USPS, the FVF , and now the promotion fees. They automatically get a cut on any cost increases and I think a cut from many states ie CA on the sales tax.  Lastly, what eBay has done is to add more time to the entire process which most sellers do not account fpr as time is your most limited resource and therefore most valuable.  Best example are the listing changes etc .   Sellers really need to add what amount of time it takes to do an entire eBay transaction from start to finish, the finish is not when the buyer gets his item. For example, we had to take care of 3 return cases this week. One was a package that 12 shipped 6/1 by priority mail, was delivered  6/14 after the pkg took 2 trips across the country , buyer was NARU'ed and filed a chargeback.  It took at least 3 hours ti finally resolve that one.

[amricons]

PS

There is another USPS rate increase coming in July 2022 I think.

Note: The NFT FVF rate is 5%. eBay in joint ventures in several NFT'S.

[ryryjedo]

Ebay should be asking, "How do we bring more traffic and more eyes to our sellers' products? How do we increase revenue through more sales without increasing seller fees?"

Ebay is actually asking, "How can we make more money off the sellers? What ways can we charge sellers more without making it look like we are charging them more? What creative excuses can we come up with to charge the sellers more?"

[simply-the-best-for-you]

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@ryryjedo wrote:

Ebay should be asking, "How do we bring more traffic and more eyes to our sellers' products? How do we increase revenue through more sales without increasing seller fees?" 

 I agree with this AND a very obvious way to do that is to sell items for HIGHER prices!  This race to the bottom price-wise that they've had going on for several years now is seriously misguided.  Some people like to shop the cheapest, others like to shop for convenience & don't mind paying more.  There is room for higher priced sellers on eBay & they s/b encouraging that b/c they get more fees when items sell at higher prices.  

[flyingmvp]

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@jewelsofnature wrote Ebay should give an in-depth explanation to this policy change, because without one, this looks like it was motivated by nothing but Greed...

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Here is an in depth ebay explanation for the recent fee increase:

Ebay wants  more of your money!

Since ebay is shrinking in sellers and buyers, they figured that  increasing the fees  once again on the sellers who chose to stay is the way to go.

That's it.