My previous post was specifically about Media Sellers and low ASP commodity product sellers whose margins are already as low as they can go. I was a little amped up in my previous post so now that I've calmed down let me give you a more sensible read on the situation.
The changes eBay is making will cause some short-term pain for Media Sellers but they will adjust and either stop selling on eBay or use it strictly as a cost recovery vehicle. In the short-term I see these actions from Media Sellers:
- Fewer media listings in CORE and an increase in store listings. If the reduction in CORE listings opens up store items to buyers (more visibility) this will be a good thing. The reduction in Store listing fees tells me that eBay wants media items to be listed in stores. If I list 100K listings in store today it costs me $5000 on March 1st it will only cost me $3,000. That's a nice savings and in exchange I will pay eBay 20 cents more on every $10 in GMV (10% FVF moving to 12%)
- The problem with that idea. The increase in FVF for stores is now only 3% less than Amazon's 15% FVF but I can list 100K listings on Amazon for free. On eBay I still have to pay $3,000 to list the same number of items. Does this make sense?
- IMO, eBay should adopt category specific pricing for Media and other like categories that ends listing fees and raises FVF to 15%. After all their new Finding 2.0 and Best Match are supposed to be able to handle the increase in listings.
My biggest takeaway and probably why I got so upset when I heard the news. The amount of effort to do business on eBay is 10 times what it takes to sell on Amazon and with the changes that have been made over the last 2 years I certainly wouldn't find it worth it.
First it was re-balancing CORE with the Store fee increase - That didn't work, so now we have a new plan. What is it going to be next year? I'm hoping that the changes are beneficial for other categories on eBay but if I am a Media Seller, I have to ask the toughest of all questions. Is this worth all the pain and aggravation?
Just my 5 cents!