posted on April 30, 2008 03:04:07 AM new
Is this what's coming for us?
eBay Italy Eliminates Store Inventory Format
eBay Italy is eliminating Store inventory format while keeping the eBay Stores ("Negozi eBay" concept. The site is introducing a new duration for Buy It Now (BIN) listings - 30 days in addition to 3, 5, 7 and 10 days - for all sellers. Store owners may list in the new BIN format, and all BIN listings will appear in core eBay search, unlike listings in the Store inventory format that is being eliminated.
Currently sellers who operate an eBay Store pay a monthly subscription fee and pay special listing and commission fees for Store fixed-price listings. eBay Italy will keep the monthly subscription fees for Stores, and owners will pay very different rates for BIN items - which attain greater exposure through their appearance on eBay Italy search results. It appears eBay Italy will keep the Stores search engine for buyers looking for Store listings only.
According to a page on the eBay Italy website translated (roughly) into English by Google's language tools:
The introduction of this new structure will allow Stores sellers to reduce the risk of listing can be sold large volumes of objects. Will be reduced or nearly disappeared (for the Premium level) charges listing for the format Buy It Now , While commissions on the value of the final will be particularly advantageous for owners of a shop and Premium Plus that will also have a dedicated tariff for sale in auction or fixed price of Hi-tech products.
eBay Italy has three levels of Stores - Base, Plus and Premium. Beginning June 3, insertion fees for Base Stores will range in price from 15 cents to $2.80 (EUR). Insertion fees for Plus Stores will be a flat rate of 25 cents, and insertion fees for Premium Stores will be 1 cent (free through August 31, 2008).
Commission fees (FVFs) for non-Store owners will have a base starting rate of 7.75%, the same as Base Stores. Commission fees for Plus and Premium Store owners will have a base starting rate of 6.75%. For Plus and Premium Store listings in the "Hi-Tech" category, the commission fee will start at 5.25%.
The monthly subscription fees for Stores remain the same for Base Stores ($9.95/month), increase from $24.95 to $29.95/month for Plus Stores, and increase from $69.95 to $99.95/month for Premium Stores.
In the FAQs section, eBay answered the question of why it was making the changes to Store inventory:
We believe that through these changes vendors will be encouraged, economically and through increased visibility of listings, to increase sales and turnover. Consequently will also improve the satisfaction of buyers who receive better service and a market with ever greater choice and convenience. In addition, buyers will be able to choose the best sellers and more easily find what they want.
posted on April 30, 2008 05:07:58 AM new
Thanks so much for posting, Queen. I couldn't figure out what changes people who took the store survey were referring to. Edited to add, while in many ways, I'd be delighted with many of the changes, I can't help but wonder if they won't be catastrophic to eBay as a marketplace. It sure will ding the part-time seller and I can't see how it will improve the buying experience. It will greatly increase the number of listings for those who are keeping count. Is that what this whole excercise is about?
[ edited by pixiamom on Apr 30, 2008 06:07 AM ]
posted on April 30, 2008 07:00:24 AM new
Based on the recent store surveys, that may be what they plan to do in the US.
I can't see how that will really be a benefit to anyone but ebay because it will increase their listing numbers greatly.
Although I like the fact that my 1500 store listings will show in core, I realize that so will all the other stores. Just in my category, listings almost doubled just from this past Power Seller listing sale. Many stores in my category have 6,000 to 10,000 listed in stores. If all these were now listed in core, how would the buyer really find what they are looking for without being frustrated and overwhelmed. And with no clear way of figuring out Best Match, even though I have good DSR's, how will I know that the majority of my listings will ever even show on the first page. From the survey, it appears that GTC listings would just keep rolling over as they do now so sellers could just list junk listings and they would continue to flood the market. Even in my store, I keep some listings that are more common thinking that at sometime a buyer might come in and find it.
Ebay numbers will be great for the stockholders. But I can't see it benefiting either the buyer or the seller. At a time when I am working on really putting more inventory into my store, this has me concerned. I am a small seller compared to many in my category.
If anyone sees this from a different view,please present your view because I see this only as disaster for smaller sellers.
posted on April 30, 2008 07:11:51 AM new
Also, I doubt if the US equivalent of premium store will be $99 USD/month - more likely they'll raise the $295/month anchor store fee.
posted on April 30, 2008 09:45:02 PM new
After seeing this, and taking the recent store survey, I believe this is coming for us as well - Ebay is really wanting to push their "core" business and getting rid of stores is probably going to happen. I've seen the writing on the wall with the previous store change, going from 2 cents to 5 cents. While I do appreciate they reduced the price to 3 cents, I thought it was probably not a long term thing. The 12% FVF is ridiculous (considering I paid 5.25% not that long ago) - I knew with the last fee change a year ago that I had to really not be so dependent on ebay to make a go of it, and so far that strategy has worked. I did a soft launch the past couple of weeks with my own site, and results have been ok so far...I have a lot of marketing ideas to really make a go of it...plus I have my mailing list of hundreds of ebay customers which doesn't hurt either.
posted on May 1, 2008 11:20:51 AM new
I really don't think this is designed to make stores go away. I think it's designed to encourage fixed price listings and yes, make eBay more like Amazon. I also see it as making sellers who want a price break commit to a level of listings each month, by paying different levels of subscription fees. Makes perfect sense to me.
posted on May 2, 2008 10:54:33 AM new
I just read this on the announcements.
Hi everyone...This is Rich Lee with the eBay Stores marketing team. In March, we ran a special offer to give new sellers a chance to try a Basic or Premium Store at no charge. The promotion was a hit, so I'm happy to tell you that we’re extending the offer.
From now through the end of July, first-time subscribers will enjoy a 30-day free trial to a Basic or Premium eBay Store. If you've ever thought about opening an eBay Store, this is the perfect time. With an eBay Store you’ll be able to:
Surely if they wanted to end Stores, they wouldn't be trying to get new subscribers.
posted on May 2, 2008 11:34:19 AM new
Nope... but it would be in line with eBay to try to get more subscribers right before raising rates...
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posted on May 2, 2008 01:18:23 PM new
I don't expect ebay stores to go away, they are just going to be much less affordable but for all the biggest of sellers. Seems to me that if you are willing to pay an anchor store fee of several hundred dollars a month, then your listing fees will probably go down. I would need to evaluate, but that model probably won't work for me. I currently have the middle level store, and I will most likely be downgrading in the near future to the basic store.
posted on May 2, 2008 03:02:03 PM new
I am not sure only the largest stores will benefit from the Italy model. Of course it depends on how they structure pricing - both subscription and listing. It also depends how crowded core will be with all the store listings and what Best Match does to search (not to mention any other Playground crap they toss in the mix). I am not throwing in the towel just yet.
I imagine this summer is going to be a bumpy ride as eBay (hopefully) implements the changes before the holiday selling season.
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posted on May 2, 2008 08:56:45 PM new
From the eBay stores board, the break-even points for the anticipated plan for store subscriptions: 250-500 fixed price listings/month for a premium or featured store (depending on which poster you agree with). 3,000 fixed price listings per month for an anchor store. Plug your own numbers in. I really think this is good for eBay. Through subscription fees, it gives them good, anticipated income. For sellers who can adapt, list truly unique items on auction, list the rest as fixed priced, it is a price break.
posted on May 3, 2008 08:55:21 AM new
Ebay did a study once and found out it takes too long for a store item to be sold,like 10 months on the average.
In the mean time,Ebay is carrying a huge load of slow moving inventory ,bandwidth is not free and when EBay does its regular maintenance ,it has to wade through all these items .
Ebay should start another website for stores only and the Ebay auction sellers who want to promote his stores can use email or Me page to drive traffic there.
It will make Ebay auction site runs more efficiently without all those deadweights.
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Lets all stop whining !
posted on May 3, 2008 09:14:08 AM new
I think eBay has changed its mind about stores and that crazy story about taking up too much bandwidth was just that - a crazy story.
I think eBay can't figure out how to handle "Stores". While recognizing that the unique part of ebay's business is auction, eBay understands that there is a huge market for fixed price commodity type listings that needs to be addressed if eBay is going to remain relevant.
Problem is, I don't think they have it figured out yet.
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posted on May 3, 2008 04:17:10 PM new
AMZN has zshop and Yahoo and MSN both have shops.
Why cant Ebay figure out 'store' since it is not exactly a babe in the woods when it comes to etailing?
Ebay stores compete with Ebay auction and as long as auction starting bid is lower than store listed price,shoppers will always try their luck first with auction.
If they lose ,thats okay,another one will show up in auction format sooner or later,in the mean time while they wait,they have so much fun ogling and bidding on something else.
Every second,every minute of the day,7 days a week,365 days a year,someone from somewhere is listing something,where else can you find a place like Ebay auction?
You wanna Ebay store to succeed,thats easy,GET RID OF EBAY AUCTION !
They both have the same kind of merchandise !
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Lets all stop whining !
concept. The site is introducing a new duration for Buy It Now (BIN) listings - 30 days in addition to 3, 5, 7 and 10 days - for all sellers. Store owners may list in the new BIN format, and all BIN listings will appear in core eBay search, unlike listings in the Store inventory format that is being eliminated.
