
02-28-2017 10:22 AM
02-28-2017 12:23 PM
Since I live on .COM, I've been using the seller hub etc for some time.
I've also been using the "promoted listings" (under Advertising) for almost a year now. Aside from the fact that the automagic rebates don't work properly yet (but they are manually crediting me for them) I am selling stuff because of the promotions. Also because the promotions increase the visibility, and views and sales, it also makes the regular version more visible etc too which also increases regular sales too.
Now my bottom line hasn't gone up 20% because of them or anything, but I am acquiring new regular customers because of it (over half my sales are to repeat customers) and so far it has been "free" because I've not yet sold more than the allotment's worth. I've adopted an approach where instead of putting them on sale, I divert the same % to the advertising. This seems to be an effective approach so far and would be even if I did not have the allotment.
Hopefully they'll bring the promoted items stuff to .CA ASAP for you regular folks!
My category FVF goes up 0.15% so that's no so bad.
The drop of TRS from 20% to 10% is unfortunate, however it now means that losing the TRS discount becomes less dramatic (I outlined what losing the TRS means to me in a different thread, losing it totally costs me about 1.5% of sales, now it would be .75% more because I've already lost the .75%). So this costs me about .75% of sales, and makes the "fear" of losing the other .75% becomes less now.
It looks like they've finally outlined what happens when one falls to the 5% late shipping level (AKA below standard), FVFs go up 4%. I'm surprised it is that little. Personally for me the thing I'd be more worried about is what happens to one's item visibility. The likely loss of visibility would be much more problematic for me than the 4% increase I expect.
I'm not going to count the anchor store coupon going from $75 to $150 as great yet, because I'm still working to find stuff that I can physically use. That is getting better and I suspect over time they'll add more stuff that is of use to me. Time will tell on that.
It will be interesting to see if anything changes for us legacy Canadian folks that live on .COM in terms of changes to what we qualify for or not (I've been wondering if that's why my promoted listings rebates don't work).
Anyway so far it looks like when all is said and done, my cost of sales is going to go up 1%
I'm sure there will be nay-sayers to this, but I sell on several sites and in my wee world and how I do things, even with this increase, my total cost of sales on eBay is still lower than it is on the other places I sell (including non-online).
So I'm not jumping for joy that I'm losing another 1%, but I'm also not going to freak out about it either.
02-28-2017 12:37 PM
Yes, most of this Update is depressing, if not infuriating. Although this is the .com link, I don't expect the bad news in the .ca Update to be much different.
After raising store subscription fees by 25%, clearly eBay still has a cash flow problem. Now they're looking at other places they can snag money, and -- as I expected would eventually happen -- chipping away at the other end of the equation (TRS). A 10% drop in TRS discount is a big deal for a lot of us who use those discounts for other purposes, like subsidizing buyer shipping costs.
I see the quarterly $30 promoted listings credit as just another "pacifier" like the free shipping coupons were to soothe our anger over store fee hikes. Extra promoted listings will simply make more money for eBay, so it's not as if it's a hardship for eBay to give some of them away. Let's hope they work better than the shipping supplies programme did.
An extra 0.15% in store fees in my category is neither here nor there for me, but the reduced TRS discount is a serious matter. I presume the 95% tracking requirement won't apply to Canadian sellers with Global TRS (I hope!).
The one (and pretty much only) positive thing I see in this Update is the 4% fee penalty for below standard sellers. I don't know why eBay didn't do this long ago.
One other thing I noticed: In eBay's usual double-speak, they say they'll be removing 3rd party product listing ads across the site on May 1, 2017. Ummm, sorry, partly accurate but not quite the whole truth (see bold typeface below)....
"We’re removing third-party product listing ads across the eBay platform effective May 1, 2017. We will begin replacing the ads with eBay promoted listings at that time, with additional placements coming over the course of the year. Sellers have asked for increased visibility and for removal of ads which take buyers off eBay. With these changes, we are taking strides to provide sellers more opportunity to get added visibility and velocity for their items and to reduce competition from external ad sources. Limited third-party advertisements will continue to be displayed."
The thing I mostly resent about these Updates is how eBay presents them in such glowingly, supremely positive terms, stressing how much we sellers will benefit from these changes. Horsefeathers! I wish they'd just give us the bad news as if we were adults.
A slap in the face and a little pat on the back... there, there, it's not so bad is it?
02-28-2017 12:47 PM
Here is the Canadian version which I have not read yet
http://pages.ebay.ca/sellerinformation/news/2017spring/index.html
02-28-2017 12:52 PM - edited 02-28-2017 12:53 PM
@ricarmic wrote:
The drop of TRS from 20% to 10% is unfortunate, however it now means that losing the TRS discount becomes less dramatic (I outlined what losing the TRS means to me in a different thread, losing it totally costs me about 1.5% of sales, now it would be .75% more because I've already lost the .75%). So this costs me about .75% of sales, and makes the "fear" of losing the other .75% becomes less now.
That's certainly one way to look at it that hadn't really occurred to me, but here's my take: I've managed to hang on to TRS since the very beginning of the programme. I've relied on that 20% (sometimes more with occasional FVF promos) to be able to keep my shipping costs down (I sell mostly to the U.S.). Having it drop to 10% will make it a lot less meaningful as a discount that can be applied elsewhere. I actually don't think of the TRS in terms of marketing or as a sales booster because there are still so many TRS sellers around. I feel, like you, that it may have a slightly positive, but mostly negligible effect on sales.
The point that really upsets me is that now we're getting "dinged" from all sides -- higher FVF, lower TRS, and higher store fees (last year's hike). So it isn't just one factor squeezing our margins, but many. And of course we have to add higher Canada Post costs to the list. What it says, in my view, is that eBay is cash-strapped, and subscribers are the easiest target to solve that problem, especially those who are locked into yearly contracts.
On the positive side, I'm happy to hear that Promoted Listings are working for you. Now that I more or less "live" on .com, I'll be trying them out. The one thing that's not clear is whether Canadian sellers listing on .com will get that $30 voucher for Promoted Listings. I suppose I'll find out by trying.
02-28-2017 12:52 PM
It doesn't appear they have changed the requirements and exemptions for Canada TRS status
02-28-2017 12:54 PM
Don't forget the Paypal cross border increase
02-28-2017 12:56 PM
Here's the part of the announcement re Promoted Listings for Canadian sellers:
All Canadian Store subscribers now eligible to use promoted listings on eBay.com
Canadian sellers who have Store subscriptions on either eBay.ca or eBay.com may now use the promoted listings feature for listings created on eBay.com.
In summer 2017, we'll launch promoted listings on eBay.ca. Look for details in future announcements.
02-28-2017 12:57 PM
Hi Rose, yes we do!
(anchor store subscribers could qualify for both - I won't because of my 2 day handling time)
02-28-2017 12:57 PM - edited 02-28-2017 01:01 PM
Its not saying ebay is "cash strapped", its saying things are going well enough they know they have the power to take more and not lose anyone. The stock price is up more then 50% from its post split low
02-28-2017 12:59 PM
@dutchman48 wrote:It doesn't appear they have changed the requirements and exemptions for Canada TRS status
No, thank goodness, especially not with respect to tracking, but they are reducing our TRS discount:
02-28-2017 01:01 PM
@dutchman48 wrote:Don't forget the Paypal cross border increase
Huh? I must have missed that one. Do you mean an increase in the currency conversion fees? When did that happen?
If so, I don't recall even getting an email notification about that from Paypal.
02-28-2017 01:02 PM
The US discussion board on the changes have opened and they are not being quite so kind.
http://community.ebay.com/t5/2017-Spring-Seller-Update/bd-p/2017SpringSellerUpdate
02-28-2017 01:08 PM
@rose-dee wrote:
@dutchman48 wrote:Don't forget the Paypal cross border increase
Huh? I must have missed that one. Do you mean an increase in the currency conversion fees? When did that happen?
If so, I don't recall even getting an email notification about that from Paypal.
Here is the fees section, increased from 2.9% to 3.7% for international payments which is on the total including shipping charges.
https://www.paypal.com/ca/webapps/mpp/ua/useragreement-full?locale.x=en_CA#8
02-28-2017 01:14 PM - edited 02-28-2017 01:15 PM
That increase was for payments from the US as we lost our preferential treatment.,
We always paid the international rate for elsewhere
02-28-2017 01:20 PM
@toby**bleep**zu wrote:Its not saying ebay is "cash strapped", its saying things are going well enough they know they have the power to take more and not lose anyone. The stock price is up more then 50% from its post split low
I see it differently. EBay has several billion dollars tied up overseas (for years now) that it hasn't been able to repatriate. I think stockholders are probably feeling assertive in anticipation that Trump may change all that. If and when that money can be brought back to the U.S., eBay will have an enormous cash injection that will make stockholders even happier.
In the meantime, eBay is probably looking for whatever means are readily available to plug the gaps, and subscribers really are the easiest target. If it weren't a cash issue for the corporation, why not reduce the TRS discount by 2% or even 5%, rather than 10%? That's a big chunk of change across the board. Why raise store subscription fees (was it last year??) by 25% rather than 5% or even 10%? If they've been doing so well, and have the power to take more without hurting, why didn't they introduce a fee penalty for bad sellers earlier?
Taken together with eBay's desperate scheme to try to get our government to raise our de minimus, I still think the whole picture says cash flow crunch.
02-28-2017 01:26 PM
@dutchman48 wrote:Here is the fees section, increased from 2.9% to 3.7% for international payments which is on the total including shipping charges. https://www.paypal.com/ca/webapps/mpp/ua/useragreement-full?locale.x=en_CA#8
Thanks for that link, but I'm thinking this does not affect me personally, since I maintain a $USD account on Paypal and receive the vast majority of my buyer's payments in $USD. I also use those $USD to buy supplies (except for Canada Post, where conversion is necessary).
Sorry, slighty off-topic, I know, but part of the whole fee hike picture really.
02-28-2017 01:39 PM
Oh yes, and about those Promoted Listings credits -- what eBay didn't bother to say:
So basically a next-to-useless handout for Canadian sellers listing on .ca, or selling single-quantity items. Big commercial sellers on .com will probably be quite happy though.
To quote a remark I noticed on the .com board: "Why offer a credit on something which is still not fully implemented and does not function very well?" (And this is coming from a U.S. seller).
02-28-2017 01:48 PM - edited 02-28-2017 01:50 PM
Hi Rose, it does say that it is coming to .CA land this summer which is a quarter after.
The time limit is the same as for our supplies coupons, they only pertain to the given quarter and unused can't be carried over. That's why I've never exceeded my allotment in a give quarter (so far).
Ebay has always rewarded multi quantity items in terms of visibility etc. Despite my non-enthusiasm for multi-item listings, years ago because of the increased visibility aspect, I converted my style/selling approach in some cases to take advantage of that. My "millions" lots are an example, I hate offering those because they are off the scale risk wise of problems afterward, but it's what one has to do to get noticed.... those are the blasted lots that show up on the first page in google searches too.... for sure the promoted listings (for some of them) has a significant positive impact. For some it doesn't . As with most things eBay, I don't know why.....
02-28-2017 01:55 PM
eBay will have an enormous cash injection that will make stockholders even happier.
Why?
It does a stockholder no good for the company to have more cash available, since eBay does not distribute its profits (or excess money) to shareholders as dividends.
The only way those shareholders make any money is by selling their stock.
Which neither helps nor hurts the business, since they didn't give the company any money to get the stock either. They bought it from some other gambler who wanted to take his money out of the stock. And so on and so on back to the IPO, when eBay did get paid for shares.