With all the changes being made on ebay this year, one looks to be promising for some sellers. E-Bay’s has announced a new listing format – Fixed Price 30 (FP30 for short). Fees varry by category and most sources point towards maximum exposure for these types of listings.
The insertation fee for a 30 day duration of Fixed price will be a flat fee of .35 cents. This is a true bargain for some who are used to paying .50 cents to $4.00 per listing. You also save with multiple quantities that are free where before additional pieces in one dutch listing would result in a higher insertaion fee.
Many of the sources I have spoke to or heard from represent these changes to benefit large volume sellers who have bundles of surplus per SKU. These fixed price 30 auctions will carry what the auction world is now calling “Velocity”.
Example: If a seller is advertising Nintendo Wii’s and has 100 of the same package deals, a Fixed-Price 30 auction would be great. For starters (assuming the same amount of product would sell), he would potentially save about $3.50 per listing X 100 = savings of $350 in insertation fees. The true test of the Fixed Price 30 will base your position in the search results and “best match” by how many sales and traffic are being driven through your auction.
Each auction will theoretically have a ranking of 1-10. If Joe sells 15 of 100 Nintendo Wii’s in the first 7 days, his score could go from a zero to a three. As time goes by in the 30 day listing, ebay will calculate a new score every 5 or 7 days (they are unsure at this time). If every new period you have sold more product, your listings score will increase and will be shifted towards ebays “core” results which normally result in a higher success ration and turn over in sales.
What does this mean for smaller retailers or garage clean out junkies who sell on ebay? This could potentially mean those sellers with a competitive price, lots of stock on hands and a good DSR and feedback score could be stealing sales from you. Your 1 piece Ninetendo Wii auction will not be shown in the core results since your velocity never has a chance to increase.
Ebay will rotate single piece, lower velocity auctions but the exposure to the big guys will steal the show. My thoughts are ebay has a low-level of concern for missed sales from smaller sellers. While ebay values their business, in most of the categories they are rolling FP30 out, the number of sales will not dimenish from the market. Only those with high DSR ratings and large quantities will take a larger chunk of the best match results.
It will be interesting to see how many people make these changes right away. I my self would not be tempted to change large quantity SKU’s to one buy it now. Only time will tell and experimenting for every seller is encouraged.
TAKE AWAY TIP: If you run an inventory based ebay business with large lots, experiment with a signifigant amount of stock in one Fixed price 30. At the same time, try smaller multi-piece BIN’s and run a few auctions close to your sales price.
To The Small Sellers: Try auctions that are close to your buy it now price. These auctions will not be affected by the new best match system and will be visible and sorted by “Ending Soonest”. Only time will tell how ebay will rotate low velocity BIN’s but assume they will be rotated with the big boys.