EBay Announces Incentives, But Sellers Want More
While a University of Maryland study reports eBay saved buyers $19 billion in 2007, the online auctioneer’s PowerSellers want more savings.
EBay announced this week it would lower fees for listing items, raise minimum selling standards and offer its best sellers incentives and discounts.
On the heels of eBay CEO Meg Whitman’s retirement announcement, John Donahoe, president and CEO-elect, announced the changes during his keynote address at the company’s third annual eCommerce Forum.
“Consumers have more choices than ever, and they expect more when they shop online today,” Donahoe said. “We’re serious about making eBay easier and safer to shop.”
Improving the Seller Experience
EBay is making changes in three major seller areas: fee structure, seller incentives and standards, and feedback. The fee changes, which vary by country, aim to encourage sellers to list more items and use more pictures. Starting Feb. 20 in the U.S., eBay is reducing its fees to list items by 25 to 50 percent.
EBay is balancing that change by increasing the fees it charges when an item is sold. Sellers prefer this structure, eBay said, because it lowers their risk if an item doesn’t sell. Donahoe said, “Put simply, we will make more of our money when sellers are successful.”
The company is also eliminating fees in the U.S. for its Gallery option, which it expects will spur sellers to include more photos of the item for sale.
Raising the PowerSeller Bar
Coupled with the fee changes, eBay is shifting the way it works with sellers. The company said it is making its minimum standards more stringent for sellers, primarily to discourage behavior that causes buyer dissatisfaction, such as excessive shipping fees or not describing items accurately.
To this end, eBay will begin decreasing search exposure for the listings of sellers who have high rates of customer dissatisfaction. The company also…