Sunday, November 04, 2007

eBay Just Got Much Cheaper for Sellers!

Following the 33% discount on listing fees through Monday Nov. 5th, eBay has announced that beginning Tuesday Nov. 6th Gallery will be free through Dec. 12th. This is a great deal for sellers who already use Gallery and a smart move to improve the buyer experience on the site because most sellers will be using Gallery on their listings.

In the announcement, eBay suggested that sellers "list more items with the savings". I think much like the 33% discount on listing fees eBay will find that listings will not improve dramatically. Sellers will most likely just take the savings and run. There may be a slight increase in listings from sellers who already use Gallery but I don't believe it will be substantial.

It is clear that eBay is heading towards free Gallery on the site which will take away a huge revenue stream for the company but the move will improve seller economics and make the site nicer for buyers. It won't increase listings IMO. This is a good deal for sellers and buyers. I wonder what investors will think.

Just my 5 Cents!


chipseo said...

I am not sure about the discounts eBay keeps offering. It just looks like they are digging around looking for something and just haven't found it yet.

I agree, the sellers will love the discount. When we were selling full time a gallery sale like this would have saved us $100's if not $1,000's by the time it was over.

I still think it sounds like they are up to something?

Randy Smythe said...

I agree. I think they are testing the 3 separate promotions to see which works best and then they may make the winner the default on the site.

1st Promo - Gallery - Free listing.
2nd Promo - 33% discount on listings
3rd Promo - Free Gallery.

Each of them for an extended period. They will look at the data and make another test or decide which of these worked.