On the heels of John Donahoe’s admission today (see previous post) that eBay is likely going to change pricing in Q108, eBay, via TSAMs, quietly sent out what appears to be an ‘invite only’ special eBay motors promotion that basically has zero listing fee, but a higher FVF.
Here’s the text of the invite (edited to protect the source – who BTW is NOT a ChannelAdvisor customer):
eBay Motors Stores Parts & Accessories Promotion
Beginning Sunday December 2nd, Motors will be offering a special Store Holiday Promotion, where we increased the store final value fee while removing the insertion fee.
This promotion will be running through December 15th. Please use this promo only if you feel this will help you.
Advantages: Free insertion fees = limitless potential to list all inventory in the store format for 30 days during our holiday season. (If you list between the dates of 12/2 – 12/15)
Disadvantages: Final Value Fee is 10% during this promotion. Advice:
Increase sale price of listing to offset increased FVF.
If you have any questions please feel free to email me.
This is VERY interesting as of course as a seller you would jump at this opportunity. What I don’t get is why on earth the TSAM would suggest you raise prices as the take-rate is actually lower/the same as the listing-fee model. In fact, we’ve seen via Amazon, in a FVF-only world, sellers feel better about lowering prices, because their risk profile is reduced (listing fees+no conversions = risk). Hopefully sellers will ignore this as it will result in a flood of overpriced items, which I’m sure is not the intention of the promo.
So, while misinformed on the advice of raising prices, I do think this is an interesting Store promo for Motors parts sellers and hopefully a hint at things to come in 08.
Note: this may be more broadly announced, but as of now it appears to be invite only/selective.
It’s also important to note that in Q3+ Amazon has been hammering top eBay motors parts sellers to come to the Amazon platform, with a great deal of success, so this could be a countermeasure to stop the bleeding in that part of eBay’s business.