Tuesday, October 09, 2007

Category Specific Pricing in the Future for eBay Sellers!

Tamebay.com is reporting that eBay UK has changed the fee structure in two categories: Toys and Photography, from now until the end of the year.

"eBay have just announced big changes to fees in the Toys and Photography categories. Insertion fees are down, FVFs are up, and Gallery is now free of charge. The new pricing will run 23rd October and 31st December 2007 inclusive.

As Doug McCallum said last week, the changes are intended to bring fees more closely in line with seller success: more of the fee structure is now paid only if your item sells. With many sellers really struggling with sell-through rates, this was obviously intended to keep the site full of listings in these two high-profile categories in the run up to Christmas."

This is the UK version of the Gallery test conducted by .com in Sept. If the results are successful you should start to see this type of change across each category. I've been saying for years that eBay needs to have a category-by-category fee schedule. This blanket fee structure puts many categories at a disadvantage.

I applaud this move and wonder when the US site will launch something similar. Look for some kind of promotional test on the US site as we move closer to the peak-shopping season.

2 comments:

BILLSTUFF said...

Hello Randy, thanks for sharing this. As a former media seller yourself, I'd be curious to get your opinion on how category specific pricing might affect sellers of CDs, LPs, books, etc. I realize this is just an exercise in hypotheticals, but what's your take? And would you expect this to be applied to eBay store pricing at some point?

Randy Smythe said...

Bill

I think eBay would need to include gallery for free and greatly reduce the listing fee and raise the FVF.

I think Stores should go to FVF only plus the monthly Store rental.

The only problem with this approach is eBay will control the search even more than they do now but sellers would gain cost control a FVF they can figure into their pricing.