Rumors, Conspiracies, etc.

Rumors, Conspiracies, etc.

by Dennis Yang


Filed Under:
ads, advertising, ebay

Companies:
ebay



Ads On eBay Piss Off Sellers

from the don't-forget-your-primary-business dept

By placing ads on its pages, eBay was able to make approximately $76 million in revenue during the second quarter of this year. However, in doing so, eBay has drawn the ire of it sellers, who complain that the ads distract buyers from placing bids on their listings. eBay claims that their analysis shows that the advertising on the site "does not get in the way of people who intend to buy or sell items on the site." Considering that eBay's advertising revenue has doubled in 2007 as compared to 2006, the ads are a good way to monetize traffic that does not end up making a purchase. Furthermore, since the ads are contextual, eBay argues that the product experience is improved since the ads are relevant to the user's query. eBay's findings make sense; if a buyer really is interested in placing a bid, it seems quite unlikely that they would be derailed simply by viewing an ad. In any case, sellers are not convinced; they continue to fear that the ads distract potential buyers, despite not having any studies that indicate such a trend. Perhaps this fear is actually symptomatic of the true problem that eBay is facing today: sellers are no longer ecstatic to be on eBay. And, there's data to back that hypothesis up: the number of items listed in the second quarter of this year was 2 percent lower than the previous year.

30 Comments | Leave a Comment..

 
 

Reader Comments (rss)

(Flattened / Threaded)

  1. Oct 10th, 2007 @ 9:40pm

    Ads what ads

    by Haywood

    Thank God for FireFox and Adblock.

    (reply to this comment) (link to this comment)

  2. Oct 10th, 2007 @ 10:01pm

    Re: Ads what ads

    by Anonymous Coward

    Amen

    (reply to this comment) (link to this comment)

  3. Oct 10th, 2007 @ 10:11pm
    by AZ

    Solution:

    Ebay drops final value fee like the old days
    gallery drops from 30 cents to 10 cents
    Ebay attracts more sellers brings back the older ones and makes more money.

    (reply to this comment) (link to this comment)

  4. Oct 10th, 2007 @ 10:58pm

    Irritated with Ebay

    by Former Ebay Shopper

    I think the sellers would have more success if they were actually competitive with the market. Those who are drawn away from sellers wares has more to do with their questionable pricing and outrageous shipping fees! Why buy a high priced cell phone which you have to wonder if you'll really get for a "deal" of 20 bucks cheaper than retail and spend 45 dollars for shipping?? Get a grip guys, I'll buy new with a guarantee of replacement/refund if there is damage or a problem with delivery.

    (reply to this comment) (link to this comment)

  5. Oct 10th, 2007 @ 11:02pm

    Ad Options?

    As a user of Adblock Plus on FireFox and AdMuncher on IE, I did not even know there were ads on eBay until I read this and a few related columns.

    I think it would be good for eBay to offer sellers the option to place ads for in their items for sale for a discount, maybe along the lines that AZ mentioned, this way everyone wins. Sellers can get lower fees by allowing ads and eBay reaps the increased revenue fee from the ads - and folks that don't want the ads pay full seller fees

    (reply to this comment) (link to this comment)

  6. Oct 10th, 2007 @ 11:47pm
    by Anonymous Coward

    I suppose if the ads were tasteful and static (I know, wishful thinking), it would be acceptable, if not all that great. As long as the ads stoop to the level of those infamous LowerMyBills-dot-com dancing silhouettes, the annoyance is justified and AdBlock Plus will continue to earn its keep, Danny Carlton be damned.

    (reply to this comment) (link to this comment)

  7. Oct 11th, 2007 @ 1:10am

    Re: Ad Options?

    by Paul

    Typical - FF=free blocking, IE=subscription.

    Good old FF!

    There are ads on eBay? LOL! I have a shop but use FF and never knew. I will have to take a look using IE.

    As for Fees - AZ failed to mention the PayPAl fixed fee that is killing me. On low value items it is a BIG chunk of the FV.

    eBay used to be good but now it is all about their bottom line and bu**er the sellers.

    (reply to this comment) (link to this comment)

  8. Oct 11th, 2007 @ 1:14am

    Not in the UK?

    by Paul

    I checked with IE - No adds in the UK.

    Thinks - as you guys in the USA seem to do nothing but sue each other, how about a class action on the grounds of discrimination?

    If you win, can I get a cut for suggesting it? LOL!

    (reply to this comment) (link to this comment)

  9. Oct 11th, 2007 @ 1:52am
    by Nick

    Well, sellers getting upset seems reasonable to me. Think about it - contextual ads mean similar products, so if you are trying to sell (for example) an MP3 player, and your info is surrounded by ads for other MP3 players, that's competing for the sale - your prospective buyer is unlikely to buy both!

    On the other hand, just maybe ebay commisioned research which show exactly what they wanted it to show? Surely not!

    (reply to this comment) (link to this comment)

  10. Oct 11th, 2007 @ 3:31am

    Ads

    by August West

    Do people actually buy products because of annoying ads that distract them from the things they are trying to see on a website?

    (reply to this comment) (link to this comment)

  11. Oct 11th, 2007 @ 3:32am

    Re:

    by icon Peet McKimmie (profile)

    More profitably, eBay adds a 30-cent surcharge to the listing fee for an ad-free listing. :-)

    (reply to this comment) (link to this comment)

  12. Oct 11th, 2007 @ 3:44am

    Re: Ads

    by John

    If they didn't work, companies would stop using them. People are stupid.

    (reply to this comment) (link to this comment)

  13. Oct 11th, 2007 @ 4:00am

    Nothing wrong with ebay...

    There is nothing wrong with ebay that a healthy dose of credible competition wouldn't cure in a heartbeat. Trouble is, there isn't any credible competition yet; many have tried, many have gone by the wayside.

    The internet presents an interesting phenomenon -- every niche has exactly one dominant player, and #2 is way back in the dust.
    --
    Texas Concealed Handgun License Courses

    (reply to this comment) (link to this comment)

  14. Oct 11th, 2007 @ 5:12am

    Re: Not in the UK?

    LOL! it's pretty sad, but true. I'm moving to Canada.

    (reply to this comment) (link to this comment)

  15. Oct 11th, 2007 @ 5:14am

    ebay sucks

    by djwinch

    it's about time to have Google improving its Google Base and Google Checkout. The "Buy it now" fixed price professional sellers are polluting the auction environment. eBay is becoming another mail order cy.

    (reply to this comment) (link to this comment)

  16. Oct 11th, 2007 @ 5:40am

    Re:

    by Tim

    I agree, contextual = distraction, and it's not surprising people might be prepared to buy something cheaper from a seller that'll be there next week.

    However, minus-points to techdirt for shoddy statistics. A far more useful metric would be the percentage changes in the average number of bids per item (optionally per item successfully sold).

    (reply to this comment) (link to this comment)

  17. Oct 11th, 2007 @ 5:55am

    Oh poor ebay...

    by Danny

    So the sellers a whinning that not as many people may be pulled into their clever scams, knockoff items, miss labeled items, and (OMFG!!) all those !!!!RARE!!!! items that show up on ebay?

    Please. These days I only use ebay as a last resort when I'm looking for something. I'd rather pay that extra $20 (and with shipping that can be outrageous are you really saving by buying it from ebay?) for a new product with warranty.

    (reply to this comment) (link to this comment)

  18. Oct 11th, 2007 @ 6:06am

    Ads within ads

    by comboman

    I expect to see ads on sites that offer free content (like Google or Techdirt). But eBay does not have free content, they are an e-commerce site. The sellers already pay listing and transaction fees. And now, the advertisers pay as well. The next step is probably the charge buyers a subscription fee for the privilege of viewing the site. eBay seems determined to kill the goose that laid the golden eggs by squeezing every last cent out of it.

    (reply to this comment) (link to this comment)

  19. Oct 11th, 2007 @ 6:07am
    by zeb

    The only thing Ebay is good for is finding hard to get items. I don't bother with normal retail stuff for the same reason mentioned before, you only save a few bucks and then make up for the savings in high shipping costs.

    (reply to this comment) (link to this comment)

  20. Oct 11th, 2007 @ 6:13am

    Re: Re: Ad Options?

    by icon Peet McKimmie (profile)

    Typical - FF=free blocking, IE=subscription.


    Actually, it's how I work too, except it's "Adblock Plus" in Firefox on Linux and "AdMuncher" on Windows.

    "AdMuncher" does cost money, but it's a one-off fee, and it works as a transparent proxy, blocking ads in all applications and browsers on the system on which it is running. $40 for life (£20) IIRC, and if you're forced to use Windows I think it's well worth it. It's extremely configurable and can do the jobs of the "Adblock Plus" and "Flashblock" extensions, plus smart image filtering.

    (reply to this comment) (link to this comment)

  21. Oct 11th, 2007 @ 6:47am

    Opera has content blocking capabilities built in

    by MR

    Another option for free ad blocking is using the Opera browser. It has this capability built into the browser and does not require a plug in.

    (reply to this comment) (link to this comment)

  22. Oct 11th, 2007 @ 6:55am
    by Name

    Craigslist is so much easier...if you don't mind collecting money in person...

    (reply to this comment) (link to this comment)

  23. Oct 11th, 2007 @ 8:16am

    Re: Re: Not in the UK?

    by Chronno S. Trigger

    I'm in the US, Using IE with no add blocking software. Just checked eBay, no adds. They may have removed them due to complaints.

    (reply to this comment) (link to this comment)

  24. Oct 11th, 2007 @ 8:21am

    Re: Re: Ad Options?

    by Matthew

    It's ok, you can spell out bugger here.

    (reply to this comment) (link to this comment)

  25. Oct 11th, 2007 @ 8:43am

    Re: Re: Ad Options?

    by Anonymous Coward

    Try Privoxy to filter ads on IE. It seems harder to use than Adblock, but it is free.
    http://www.privoxy.org/

    (reply to this comment) (link to this comment)

  26. Oct 11th, 2007 @ 12:00pm

    Re: Ads what ads

    by inc

    I second that motion and append NoScripts Add-On.

    (reply to this comment) (link to this comment)

  27. Oct 12th, 2007 @ 12:59am

    eBay Hypocrisy

    by Enrico Suarve

    I think part of the reason that this is pissing off sellers so much is the utter hypocrisy from eBay

    For years they have stamped on sellers for even thinking about including links to other sites in their listings, claiming that it would reduce traffic on eBay and be bad for all. They have removed listings for just refering to tech specs on other sites in the past

    My id used to have a _co_uk on the end to encourage people to go straight to this address in future from outside eBay – even though this domain redirected straight to my eBay shop my account was suspended as it encouraged people to look elsewhere (can’t find the mail but it was great reading)

    So basically for years they’ve been saying that any reference to sites outside eBay would reduce traffic for all sellers but somehow now they are doing it, all's good?

    I call bullshit

    I think eBay have forgotten that their actual customers are the sellers NOT the buyers

    (reply to this comment) (link to this comment)

  28. Nov 18th, 2007 @ 7:48am

    Don't they make enough?

    by jeremiah Sherrill

    I am sorry but I sell on there. After what they charge me in listing fees I don't see why in the hell they are selling advertising to begin with. Makes me sick. I wish somebody would just step up and knock eBay down a peg or two.

    (reply to this comment) (link to this comment)

  29. Mar 8th, 2008 @ 6:42am

    Ebay Ads

    The ads are annoying to me as well, I started using Online Auction Exchange Free Online Auction Listings They don't have any ads on any of there pages ... very clean site, easy to use, they also offer No Listing Fees, No Commission or End-of-Auction Fees. List your goods and services for a fraction of what you will pay eBay. Get your own online store for .99 cents a month. Online Auction Exchange.

    (reply to this comment) (link to this comment)

  30. Nov 16th, 2008 @ 1:01pm
    by Anonymous Coward

    I THINK the original concept of the ebay bargain has been lost on the fact that they screw you any which way but loose for a quick and cheap buck, must admit their legal team do a good job of greasing up the seller tho.
    Cheeky buggers should atleast buy us dinner b4 ******g us!!!

    (reply to this comment) (link to this comment)

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