Home  >  Community  >  The eBay Outlook  >  Interesting post about DSR discounts..


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 neglus
 
posted on February 8, 2008 01:57:40 PM new
Steve Grossberg, 1busyman on eBay, posted the following on the IMA Blog http://imamerchant.org/blog/


eBay Fee Changes… Look At Your Own Numbers!
February 2nd, 2008

written by Steve Grossberg

Anyone who lowers shipping in my own opinion, is foolish. Look at your own economics. Remember if you obtain the 4.8 Detailed Seller Rating on all 4 you get back 15% of your FVF. Look at me for example.

Items listed 40,000
Items Sold = 8,000
ASP = $14

So $14 x 1.23 FVF x 8000 items = $9800 FVF paid

$9800 FVF paid x 15% discount = $1470

$1470 savings divided by 8000 items = 19 cents per item

So in essence I have to say to myself will a 19 cent reduction in my shipping and handling move my DSR from 4.4 to 4.8? The answer is hell no it will not. Even if it did the ebay discount is not guaranteed as it is a 30 day rolling average and some months I may get it and some not.

However I could simply raise my shipping and handling by 25 cents and guarantee my only bonus better then the bonus ebay will pay out. Also remember this will not affect you in search unless DSR is 4.2 or lower. So ebay is not providing enough incentives to sellers here and putting the entire burden of fixing the problem on sellers. So in summary I would think most sellers would be best doing the math as I showed above for their own sales and raising your shipping and handling to provide you the same bonus or better then the 4.8 would have got you.

So ebay sellers, please look at your own numbers!

-------------------------------------


http://stores.ebay.com/Moody-Mommys-Marvelous-Postcards?refid=store
[ edited by neglus on Feb 8, 2008 01:58 PM ]
[ edited by neglus on Feb 8, 2008 02:00 PM ]
 
 CBlev65252
 
posted on February 8, 2008 02:07:30 PM new
I charge exact for Priority Mail and maybe 50 cents over exact for First Class. My shipping stars are not 4.8. I don't expect them to ever be. This guy has it right. You can't go by Ebay's one-size-fits-all math. It doesn't work. I refuse to budge on my shipping costs. I don't intend to lose money over it. What little I'd save in Ebay fees isn't worth it. JMHO.


Cheryl

 
 hwahwa
 
posted on February 8, 2008 02:47:26 PM new
Why does 1busyman have 1-3 days auctions?

*
Lets all stop whining !


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 hwahwa
 
posted on February 8, 2008 03:05:35 PM new
There is a UK seller who has 100% positive and his DSRs are 4.9.4.9.4.8.4.8.
Whenever he runs an auction on Ebay,he grosses 10-12k for 50 prints.
His shipping fee for US customers is 15 dollars.
His FVF under the new system will be 415 dollars.
With the new system ,he will get a 15% discount which comes to $62.
So it does work for some sellers who sell high end items.
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Lets all stop whining !


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 TheFamilyBiz
 
posted on February 8, 2008 03:44:49 PM new
That example is perfect to illustrate the inherent flaw in the 5-star measurement of satisfaction with shipping time and cost. If you're paying that price for prints, how can $15.00 shipping to the US be anything but 5-stars?

You see the same thing with Free shipping only getting 4.8s or below. It's a flaw in the education of buyers. We have to do it if eBay won't -- if it matters to you, that is.


Wayne

Never explain -- Your friends do not need it and your enemies will not believe you anyway.
~ Elbert Hubbard
 
 hwahwa
 
posted on February 8, 2008 05:07:04 PM new
It is not Ebay,it is the bidder mentality,they derive no value from shipping ,so why should they praise us for our shipping efforts?
I guess if someone asks me to rate the mail order catalog house I bought from say Spiegel,Sierra Trading ,AMZN,what can I say,a box is a box,what do you expect me to say about a box and tape?
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Lets all stop whining !


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 merrie
 
posted on February 8, 2008 06:05:35 PM new
Great post neglus, I was thinking the same thing. Why should I break my neck "chasing" stars when it is put of my control (don't tell me it is, you know who you are)? I cannot control the subjective views of anonymous reports of buyers.

I think Ebay knew it was an unattainable goal for the vast majority of us.

 
 fluffythewondercat
 
posted on February 8, 2008 06:21:47 PM new
you know who you are

I was just thinking, for once it's not me.

I think Ebay knew it was an unattainable goal for the vast majority of us.

Never attribute to malice that which can be adequately explained by stupidity.

Fits eBay to a tee.


fLufF
--
eBay changes mean fewer choices for buyers. Here's why.
 
 merrie
 
posted on February 8, 2008 08:04:17 PM new
"I know who you are"
You're right, it was not you.

 
 MAH645
 
posted on February 8, 2008 10:34:12 PM new
I get rated worse for communication than I do on shipping rates. The only thing I can think of is that sometimes I am slow responding to questions to the seller because I work nights and sleep mornings. I charge $4.50 on DVDs to ship First Class,many sellers charge more than that.
**********************************
Just wanted to let you know about this new website that pays us up to 36% of the seller's fees whenever we buy something on eBay.

We can also get cash back at other retailers and earn extra cash when other people shop.

Just use the link below to check it out and let me know what you think!


http://www.bigcrumbs.com/crumbs/frontpage.jsp?r=moviehut
 
 ST0NEC0LD613
 
posted on February 10, 2008 09:30:24 AM new
There is one point that is being forgotten here.

Look at his sell through rate. It's 20% folks. Which I am finding to be more typical than the exception.

Under the current system, he will pay more in fees than the new method if his STR stays at the same rate.

Just something to consider.
 
 glassgrl
 
posted on February 10, 2008 09:40:35 AM new
what happens if you just leave the feedback and no stars? computer nubes might not know to click on them since they are so grayed out. I doubt my DH would.



 
 niel35
 
posted on February 10, 2008 10:05:47 AM new
What if I sell i.e. 6 items. Does only one item count when you use the stars as it does with Feedback?

 
 
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