eBay Increases Minimum Promoted Listings Rate To 2%
UPDATE 6-30-22
Canada apparently didn't get much if a reprieve - sellers are now receiving notices that the minimum rate for Promoted Listings standard will be increasing to 2% there as well, also effective July 11.
Update: Apparently this was only temporarily delayed for Canada. See attached. See response post 2 referencing the sites it would applicable to.
We're continuously evaluating the performance and impact quality of Promoted Listings Standard as a tool to drive seller success. As part of this work, effective July 11, we’ll be changing the minimum ad rate for Promoted Listings Standard from 1% to 2%. While we recognize this impacts your business, this change will ensure your campaigns remain competitive in reaching buyers in our growing marketplace, and also allow us to deliver products and services that drive best-in-class returns for eBay sellers.
UPDATE 6-15-22
eBayUK sellers have also received this notification and eBay community staff have confirmed the increase will apply to US, UK, and Australia but oddly, not Canada...at least for now.
As of right now the only sites where this will take effect will be the US, UK, and AU. At the moment .ca is not a part of the promoted listing change.
eBay is increasing the minimum ad rate for Promoted Listings from 1% to 2% effective July 11.
Got this e-mail from eBay:
We're continuously evaluating the performance and impact quality of Promoted Listings Standard as a tool to drive seller success. As part of this work, effective July 11, we’ll be changing the minimum ad rate for Promoted Listings Standard from 1% to 2%. While we recognize this impacts your business, this change will ensure your campaigns remain competitive in reaching buyers in our growing marketplace, and also allow us to deliver products and services that drive best-in-class returns for eBay sellers.
Just in the past year, we’ve added new Promoted Listings Standard features like an all-in-one campaign dashboard and downloadable reports that provide sellers with a convenient way to review important campaign data. On July 11, we’ll be rolling out a new feature that’ll allow sellers to edit multiple listings at once for both Bulk and Simple campaigns. This’ll make it quicker to adjust ad rates versus having to make manual changes for each campaign.
And there’s more to come.
Next steps
We’d encourage you to adjust your ad rates that are below 2% on or before July 11 to 2% or higher so that your promoted listings can continue to appear in advertising placements across the eBay network. If you decide not to make any changes, those listings will still be active but won’t be promoted.
This move comes after eBay already granted themselves a de facto ad fee increase effective June 1st by changing the way fees are calculated to now include shipping and sales tax.
Liz Morton ~ Founder
Change to Promoted Listings Standard ad fee calculation methodology
On June 1, 2022, the Promoted Listings Standard ad fee calculation will change to align more closely with how we calculate final value fees.Specifically, the ad fee will be calculated in all markets based on the total amount of the sale for each attributed sale, using the same basis we use to calculate final value fees (including applicable taxes, shipping and other applicable fees described here).
That change has left many sellers confused and frustrated with the lack of transparency - since there is no way to know in advance where the eventual buyer of an item is going to be located, it is now impossible to know ahead of time how much the ad fee will be for Promoted Listings Standard.
Liz Morton ~ Founder
One seller in the community very aptly stated:
So, on June 1st they pushed up their PL revenue by making a HUGE change from item price calculation to total price calculation, generating more revenue for ebay while reducing my net. Now they want even more, so they are telling me I can no longer use less than 2% as my rate.
One does have to wonder: when does ebay start to focus on increasing GMV, rather than increasing ebay's revenue by taking more and more from its remaining sellers?
I do hope someone in the executive suite can explain the concept of "tipping point" to Jamie, because if ebay keeps this up, that tipping point might not be very far off.
I couldn't have said it better myself. 👏👏👏
What do you think about eBay increasing the minimum ad rate to 2%? Will it impact how you use Promoted Listings? Let us know in the comments below!
