Thursday, September 11, 2008

Update: The New eBay Fixed Price Fees are [Permanent]

Rather than give my 15% on Brews post I figured I would just link to it. I think it provides eBay sellers with some valuable information regarding the changes at eBay.

Update: Apparently there is some confusion about this as Lisa has pointed out in my comments section and Richard from eBayInk mentioned in the comments on Brews post.

Further Update: I've received confirmation from eBay that the new Fixed Price fee structure is permanent and not just a promotional price.

Just my 15%


Cliff Aliperti said...

I've been kind of expecting pricing changes in '09 since the get-go, but have been so obsessed with adjusting to current changes that I haven't really thought about it. Really not too shocking considering the big shake-up, I mean, I guess I've been expecting them to have to sit back and see just what exactly they've created here and then adjust pricing from there.

That said, Randy, do you think they'll ever get enough of a grip on what they're doing that we will be able to come to expect smooth-sailing in the future, by this I mean in '09 or even '10? By smooth-sailing I mean the old annual style announcement/adjustments, or should we be ready to jump every quarter from here on out?

Anonymous said...

Ebays ignorance of their own sellers/buyers/marketplace is staggering. How can anyone partner with a business like ebay that changes radically every 3-6 months? Do they not stop to ask themselves that FUNDAMENTAL question? We have been saying over and over for several YEARS what Brew blogged and ebay still can't figure it out.

After 10 years of printing money Ebay just has no clue how to make money like any other business. If they don't get it now they never will.

Randy Smythe said...

Cliff, I honestly see no signs of stability until mid-2009 at the earliest.

They have a strategy but they couldn't just implement it all at once. Ultimately eBay will become a Shopping portal and advertising vehicle and less a marketplace. I may be wrong about this but its the only thing that makes sense to me.

Cliff Aliperti said...

Mid-'09. Hell, Randy, I'd sign up for that if it could be set in stone!

Randy Smythe said...

Cliff, not much chance of that being set in stone. Its just my best guess.

Lisa Suttora said...

Hey Randy, I first heard the buzz about this yesterday (and I also read what Brews wrote) and either something has been changed (and not announced) or it was written wrong in the first place by eBay.

If you look at the original announcment, the .35 cent listing is not referred to as a promotion. There is a .05 cent holiday promotion rate for for Buy It Now™ fixed price listings in the Media categories.

Here's the original announcement:

If you look at the details chart - it does not refer to this .35 cent fixed price promotion as temporary

(It does refer to the .05 cent holiday media promotion.)

In her original post about it, Ina referred to it as a new listing format.

And in one of the eBay Certified Provider meetings, we were told this was a new listing format (not a promotional one).

And I took quite a few notes in that meeting.

So I don't know what's really going on... I'm waiting for clarification from eBay as well.

I'm certainly hoping this is a big misunderstanding and not a policy reversal.

Randy Smythe said...

Lisa, there seems to be some confusion, go figure.

If you hear anything before I do please let me know.


Lisa Suttora said...

Interesting. After my last comment, I was Googling around this afternoon and found this one eBay checklist (updated 8/26) which states that the .35 cent listing fee goes through the end of the year.

But nothing else I researched refers to it as a promotion.

In fact I'd never even heard about the existence of this checklist until I happened to see it in the Google search.

However, this checklist doesn't even refer to the .05 cent holiday listing media promotion!

Another interesting tidbit in this checklist - it says that in 2009 all email addresses will need to be removed from listing descriptions.

We were told by eBay (and also told this was public knowledge) that the initiative to remove email addresses from listings had been dropped completely.

And that email addresses could continue to remain in listing descriptions.

Maybe the checklist writers didn't get the updated policy information?

Maybe this was a rough draft?

The mystery continues...

Anonymous said...

Confusion over something eBay might or might not possibly be doing?

Wow, who would have imagined such a thing.

nadine said...

Ultimately eBay will become a Shopping portal and advertising vehicle and less a marketplace

Randy, could you expand a little on what you think their end state goal will look like? Because they are plainly hacking their way blind through the wilderness to try to get there.

Randy Smythe said...


This is pure speculation, but it looks to me that eBay's long-term goal is to become a shopping portal, basically a Google Base on steroids.

Banner ads,
Sponsored Ads
Featured Fees

Adds for seller's across the web, they just can't take a direct approach.

Just my wild rantings at this point.

Tony P. said...


Perhaps ebay didn't get the memo?

Ad Farms are not just passe and verbotten by all reputable Search Engines, but most peeps absolutely despise them.

Besides.. without my Old Crap to 'scent the trail', no one will purposefully go there!

OMG! Can you imagine all of the malicious code/crap that ebay would attach to your 'puter?!

My Ad-Aware anti-sleaze software would have a frickin' meltdown.


nadine said...

Randy and Tony,

"Ads for sellers across the web" does beg the question a little, of what is going to be the "get" that continues to bring eyeballs to the Ebay site. I side with Tony, it will be our Old Crap, which is why they dare not give us a quiet corner to let us continue to do our successful and high-margin thing for Ebay.

What do you think of this theory? Because as far as I can see, if you sell anything new on Ebay, their customer "loyalty program" amounts to unannounced 16-ton weights dropping on the heads of their loyal customers, as non-fee-paying Diamond Sellers take up residence in one category after another.

Who will be their customer base once their plan is in? Big box stores (& probably 2nd tier ones at that) & whoever can fit in the cracks in between.

nadine said...

The Nielsen ratings for August 2008 YoY unique visitor counts for top internet shopping sites are out:

Online shoppers turn to as they seek to stretch their dollars

Traffic to grew 17% year-over-year to nearly 26.17 million in July as budget-conscious consumers looked to low-priced retailers in an effort to get more for their money. But the jump wasn’t enough to top eBay Inc. The online marketplace took top prize for traffic to online retail sites last month, despite falling 6% year over year. Other web sites experiencing high traffic growth include: NexTag Inc. with 22%; Yahoo Shopping, 19%, Netflix Inc., 18%, The Home Depot U.S.A. Inc., 20% and Sears Brand LLC, 27%.

The top 13 online shopping destinations in July with unique visitors in millions this year and last and growth from prior year, according to Nielsen Online were:

eBay Inc., 56.11, 59.83, -6% Inc., 45.14, 43.09, 5%, 28.36, 25.11, 13%
Wal-Mart Stores Inc., 26.17, 26.31, 17%
Shopzilla Inc., 18.99, 19.63, -3% Network, 16.39, 18.39, -11%
Dell Inc., 16.18, 17.48, -7%
Yahoo Shopping, 15.73, 13.26, 19%
NexTag Inc., 14.42, 11.87, 22%
Best Buy Co. Inc., 13.89, 13.25, 5%
Netflix Inc., 13.82, 11.75, 18%
The Home Depot U.S.A. Inc., 13.44, 11.23, 20%
Sears Brand LLc, 12.84, 10.14, 27%

Unique visitors count only once each shopper who came to a site, no matter how many times the shopper visited. This is a custom list compiled by Internet Retailer of the top online shopping destinations based on Nielsen Online data. Rankings may contain multiple web sites from the same retailer or manufacturer.

Anonymous said...

Isn't owned by ebay? Those folks in SJ sure are on a roll.

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