AuctionAds / eBay affiliates - expect lower revenue

[Joeychgo]

eBay is going to lower it's fees in 2008. Since affiliates get a % of those fees (and if you use auctionads/shoppingads, your part of an eBay affiliate) you can expect to make less.

EBay plans to cut the fees it charges sellers across auctions in its three biggest markets -- the United States, Germany and Britain, executives told investors. Next week, eBay will announce changes in the pricing of its services and improvements in the way buyers can rate sellers, Donahoe said.
http://www.cnbc.com/id/22808450/for/cnbc

[Peggy]

Gonna be alot of unhappy campers out there.

[LdyG]

A bit of it may depend on how eBay does the "lower fees".

My board is mostly made up of long time eBay buyers and small and hobby eBay sellers (past and present, myself included) that sell used, collectibles, vintage, antiques more then brand new. Although they're hopeful there's a lot of concern that the lower FVF (final value fees) may be based on tiers so that the ones that benefit will be the high volume sellers that flood the market with lots of "stuff".

If that happens, depending on how it's set up, the drop in income from ShoppingAds could potentially not drop at all or only slightly depending on what keywords (or specific sellers or even prices) a publisher uses.

~*~
Hi Peggy.

[Joeychgo]

I dont see how. Affiliates get a % of the total ebay fees applied to an auction

[Peggy]

Hi Peggy.

Hiya!

[WoodiE55]

Unless that cut the costs by more then half then I'll still be very happy with Shopping/AuctionAds.

[LdyG]

I dont see how. Affiliates get a % of the total ebay fees applied to an auction

Okay... here's the new fee structure..
http://pages.ebay.com/sell/update08/basic/index.html

Lower insertion fees by a bit..
Free Gallery
3.5% (I think) HIGHER FVFs for many sellers

I have a copy of the old fee structure as well.

This has just hit.. so I haven't had time to do the math yet. I have a feeling my board members are not going to be happy about this though.

[Joeychgo]

Lower insertion, but higher final value fees - so maybe it'll be a wash for us (or maybe an improvement)

For example. I did a quick look at some numbers.

For a auction that starts at $0.01 and sells at $25 and has a gallery feature

Old Fee Structure Total Fees: $1.86
New Fee Structure Total Fees: $2.34

So it looks at first glance that total fees are going up, not down.

Lets do another for an item that sells for $100

Old Fee Structure Total Fees: $4.30
New Fee Structure Total Fees: $4.96


So looking at it at first glance, it appears that sold items will have a higher fee and unsold items will have a lower fee then currently. To us, thats good because we dont get paid on unsold items, only sold items, so our revenue should go up.

[qryztufre]

So looking at it at first glance, it appears that sold items will have a higher fee and unsold items will have a lower fee then currently. To us, thats good because we dont get paid on unsold items, only sold items, so our revenue should go up.

it's even doubley good for us.

I'm sure there are people out there not liking the fees involved with not selling things so they hold off on some of the things they could be offering. With lower fees for things not being sold, they may be more inclined to put more on the market.

Win/Win?

[Joeychgo]

Maybe - Time will tell...