Wednesday, August 29, 2007

The Day After! The eBay Month Long Promo Revisited

After taking some time to think over the promo a little more, I can't see any downside for sellers. Sure their are two price tranches that actually cost more to add gallery ($10 - $24.99 and $25 - $49.99) but i still think it is worth it for sellers to test the use of Gallery.

Some important things to consider regarding this Promo:
  • The 1 week test of this promo was successful so they made it a month long and expanded it to all price tranches to gather additional data.
  • This is a sign that this pricing may go into effect permanently. Many people have said "why not just make gallery free" This approach allows for seller differentiation. The sellers that add Gallery will show up in Best Match and have greater visibility while sellers who do not use gallery will take their chances.
  • By discounting listing fees rather than Gallery fees eBay asserts more control of search. Sellers who do not want to play in this new playground will miss out.
  • Be prepared for a Gallery filled Holiday Shopping season.
  • Now here is my cynical side: The timing and length of the Promo will help eBay's listing numbers and keep Wall Street off their back for another quarter.
I've often complained about eBay's execution and their use of sticks to mold seller behavior rather than carrots but in this case I have to applaud both the execution and the carrot. eBay has managed to improve the Buyer Experience and incentivize sellers in the same move. Now if they will just start advertising again to drive buyers to the new and improved eBay sellers would be happy. eBay, this is a great first step please keep it up.

Notes for Sellers regarding the Promo: (Excerpt from The Seller Evangelist)

If you've never used Gallery before this would definitely be the time to test it. Remember eBay will launch Best Match in September and I'm sure use of Gallery is part of the criteria so if you were considering not taking part in this promo, you might reconsider to give your listings the best shot at being seen.

Just be aware that your total cost will increase in two price ranges:
  • $10 - $24.99 - You will pay .20 cents more to add gallery
  • $25 - $49.99 - You will pay .05 cents more to add gallery
If you currently use Gallery you will be saving the following amounts:
  • $.01 - $.99 - You save $.20 cents per listing
  • $1 - $9.99 - You save $.40 cents per listing
  • $10 - $24.99 - You save $.15 cents per listing
  • $25 - $49.99 - You save $.30 cents per listing
  • $50 - $199.99 - You save $.60 cents per listing
  • $200 - $499.99 - You save $.90 cents per listing
  • $500 - Up - You save $1.20 per listing
So if you are currently using gallery you will save in every price range. Think this through, don't go crazy using your savings to add a ton more listings but where it makes sense add listings that give you the best savings.


toby said...

I believe this is a substantially greater cost increase then most are commenting on when taking into account the relist credit doesn't count for gallery. So by effectively moving listing fees to the gallery line (as opposed to giving a free or discounted gallery fee) they've hidden some of the cost of this.

For those of us in Canada who have grown accustomed to very frequent .05/10 listing days this appears outrageously expensive.

Randy Smythe said...

Toby, on previous listing days you were not able to get a relist credit either.

I would ask any eBay folks who have the info and can clarify this to comment here please. I know you are out there.

The only area I see a problem with the listing credit is with items listed under $9.99 because that listing is actually free. I would think any other relists for the other tranches would get the benefit of the relist credit as long as it is relisted during the month of Sept.

I may be wrong here so if nobody from eBay is brave enough to comment on the blog I will send a request for clarification to PR and a few friends.

I'll let you know what I find out.

Anonymous said...

I sell nothing but items under $9.99, so can see how the sale will save me a nickel per listing...but I can't find information clarity with regard to the RELISTING fees and how they work with this sale....I'm worried that the relist insertion fee won't be free AND then I'll be also paying for the gallery item fee...I'm waiting for an email response from ebay, but I expect that to take a few days or more...

Randy Smythe said...

I have someone at eBay looking into this. I hope to hear back by the end of the day.

I will post an update on the blog as soon as I know something.