Friday, March 2, 2007

eBay Store Sellers! How Would you Like This?

I normally use The Digital Napkin to discuss new ideas but since this idea directly affects eBay Store Sellers I thought I would bring it up here. Okay here goes:

Since eBay wants to increase listings in CORE and disadvantage Stores in search, how about if they provide store sellers with a new referral credit? The credit would be 50% off of the sellers store FVF on purchases that began with a link from a CORE listing , Store Bookmark, Watched Item or Return Customer -- The Watched Item credit may be a little too much to ask.

A great many store purchases start with a CORE listing that the customer thought was interesting but before purchasing they decided to look in the Sellers store for something else. This credit would serve two purposes. It would reward Store Sellers for listing in CORE and possibly increase the number of CORE only sellers that would open stores.

Blogs are a great way to get feedback for this type of idea so please add your comments regarding the CORE referral credit.

Additional comments: The idea is not an all-or-nothing concept. For instance if you think sellers should get a FVF credit for purchases made by return customers let me know.

6 comments:

Mountie said...

I have to have a downer on this idea, but for the vast majority of eBayers the only way they get buyers to their shop (I'm in the UK, we don't have stores ;-)) listings if via an auction or BIN on core. Most sellers do no email marketing and do little advertisement for their shop. Very few buyers use shop search as opposed to site search.

If eBay gave your suggested discount they'd be giving it on almost EVERY shop sale. They'd be better off giving the discount for sales that didn't originate from core because that means the seller has done some work to drive traffic (and they do... it's called commision junction - they just changed the affiliate compensation scheme! :-))

Randy Smythe said...

Thanks for the Store/Shop reminder. I actually like Shops better.

I'll wait until we have a few more comments before I add my 5 cents/pence

Frank Ross said...

Since the store FVF hike last year, it's been more difficult to make profit from the store. Every one of my listings has a link to buy from the store with free shipping as an enticement. But the price I have to charge in the store to make up for eBay gouging on the FVF and the free shipping ends up on high side, and that only results in a trickle of sales - usually on the day of the listing end. So yes, anything that reduces the painful FVF would be a welcome idea.

However, let's get down to reality here? eBay do something like this for their sellers? What's in it for them? Sellers are already more or less forced to use Core listings to generate traffic to their stores. Would eBay being the company they are (have become) see this as a win win?

Randy I do wish you worked on eBay's board of directors! Or at least somewhere in their organizations.

Randy Smythe said...

Frank, I think the point both you and Chris make is valid. Why would eBay give away something (FVF) for listing in CORE when store sellers are already doing that and eBay gets the full FVF?

If adopted, I believe eBay would see an increase in CORE listings from store sellers because the reduced FVF would allow them to budget more for CORE listing fees. There would also be a residual effect, as more CORE only sellers would open stores to take part in the program, and it would be a great PR move. The increase in full price listings would encourage investors who are getting concerned by all the listing sales and the expanded CORE exposure would increase sales for sellers.

In my view this is a win/win for both eBay and sellers.

Cliff Aliperti said...

Sounds great for us, Randy, but I get the idea that eBay kind of wants the eBay Stores to just go away, so I can't see them ever adopting it. I say this because I took Bill Cobb's core announcement to mean they wanted to clear the cheaper stock and the dead stock -- your idea, which I do agree with, would bring it all back, and then as the other posters said/suggested: What's in it for them?

Randy Smythe said...

Cliff, what eBay management doesn't understand is that Stores are the key to eBay not the problem. Until they look at Stores from a different perspective nothing will change and eBay will continue to alienate sellers.