Exploitation of the Current eBay Plus Model

Associatedshinichiduy @ eBay Australia on 26/06/2018 - 10:47
Last edited 26/06/2018 - 11:42

Hi guys,

First, we would like to offer our sincere thanks to the community for your support for our store. We could not still be here without you guys.

We would like to know your opinions about the current eBay Plus model.

As you can see here, it does not cost sellers extra to participate in eBay Plus and eBay will automatically (and at their discretion) choose which listings are eligible for the eBay Plus badge.

Therefore, it is so tempted to inflate the shipping price in order to get the most out of the current eBay Plus model. Good sellers (like us) will try to pass on the benefits to the buyers (like us) while bad sellers will pocket the money (as in the case for $19.95 postage for a small SSD)

We only decided to take out our actual shipping cost and pass on the saving to eBay Plus members while having separate listings that have shipping cost included for non-eBay Plus members. For example, for our Back Roller Classic, we have eBay Plus listing and non-eBay Plus listing. We also have an eBay Plus listing with express shipping

We fear that further exploiting the model will lead eBay to revise the model and everyone loses out.

Are we doing the right things or are we too nice for not exploiting further? If you were a seller, what would you do?

Poll Options

  • 1
    Further inflate the shipping cost.
  • 34
    Keep doing the same. The way we are doing is right.
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Comments

  • pernunz on 26/06/2018 - 11:02
    +1

    In the past there has been a tendency for sellers to absorb the shipping price into their item price and include 'free shipping'. It now seems like there's an incentive for sellers (who have items on eBay Plus) to properly break out this pricing structure, which can only be a good thing.

    • dcep on 26/06/2018 - 11:08

      "absorb the shipping price into their item price and include 'free shipping'"

      good for 20% code

      "properly break out this pricing structure, which can only be a good thing."

      only good for PLUS members

      • pernunz on 26/06/2018 - 11:20

        Good for PLUS members, and in theory no effect for non-plus members.

  • tsunamisurfer on 26/06/2018 - 11:10
    +9

    1. This opening post reads to me as a quasi advertisement thinly veiled as a moral dilemma.

    2. Inflate you shipping costs because eBay are getting paid subscriptions for eBay plus so they are collecting money so that they can absorb shipping costs.

    • HighAndDry on 26/06/2018 - 11:27

      The Poll is a classic false dilemma. They can have actual shipping costs charged to eBay, and charge buyers the actual product price without shipping.

      • Associatedshinichiduy @ eBay Australia on 26/06/2018 - 11:36
        +2

        The real issue would be the amount of shipping cost is determined by sellers. eBay does not check it (presumedly to a certain threshold). Sellers can say their shipping cost is $50 while it is actually only $20. Therefore, they would list an item for $100 + $50 postage whereas before, they would have only listed as $120. eBay Plus will become unsustainable having to pay sellers for the $30

        • HighAndDry on 26/06/2018 - 11:52

          eBay is a big company. I'm sure they can figure it out - e.g. like putting a cap on shipping reimbursements to sellers or having a sliding scale of shipping depending on the product.

          As I said - you should just have one listing, with shipping shown separately (and accurately) and use the system as it's designed.

        • D C on 26/06/2018 - 14:11

          eBay does not check it

          They do, just probably not as much as they used to. In the olden days you'd buy a $1 item with $19 shipping (if that sounds familiar thay's your dodgy 'Plus' model), you complain the item was fake and promptly get your $1 back.

          eBay added rules against 'excessive shipping' and would take a bit more notice again once the complaints started to roll in.

          That's one reason they also pushed hard on the 'free shipping' stuff in the first place.

  • HighAndDry on 26/06/2018 - 11:14
    +2

    Are you saying that people are inflating their shipping costs so that eBay pays them more for that shipping and that the end-price to the consumer is the same?

    I also don't understand why you have two listings. It should be the one listing, with one shipping price. eBay Plus members get the benefit of free shipping, non-eBay Plus members don't. Otherwise there would be no incentive for anyone to join eBay Plus, and the scheme dies.

    Plus, your "non-eBay Plus" example seems to be misleading - why not charge the same price, add shipping separately? Instead of marking it as "Free Shipping" when really shipping has just been included in the price? Having a breakdown of how much the buyer is paying for the product and how much they're paying for shipping is more information to the buyer, which is a good thing.

    I refuse to answer your poll - your options are too limited. I'd pick: "You're using eBay Plus wrong."

    • Associatedshinichiduy @ eBay Australia on 26/06/2018 - 11:31
      +1

      Thanks for your opinions.

      We have a Free Shipping listing for the benefits of buyers as below:

      (1) when eBay has a sitewide discount code like now. The discount only applies to the item price and not shipping so buyers receive more discount with listings that have shipping built into the item price. I.e. using "PIZZAZZ" with a $100 delivered item. If the listing is $100 free shipping, the final cost to buyers is $90 while with a $90 + 10 postage, the final cost to buyers is $91.

      (2) Free Shipping listings are better for buyers when returning orders as they receive the whole cost back while some may think that the amount they pay for shipping will not be refunded when returning an item.

      (3) eBay does also reward and prioritise free shipping listings with eBay Premium Service badge.

      To us, it does not make any difference at all.

      • HighAndDry on 26/06/2018 - 11:53

        Actually good points, fair enough. Maybe that's what the eBay Plus system was designed to discourage.

  • ronnknee on 26/06/2018 - 11:23
    +1

    Yep, that's exactly eBay Plus is doing - same eBay experience but will cost more. Refer to my previous comment for my take.

    Assuming people continue with the eBay Plus subscription, sellers no longer have an incentive to list items as "Free Shipping" when they can be compensated for the postage again. This means non-subscribers will have no choice but pay for postage OR pay for the subscription since now many items have a delivery fee.

    • HighAndDry on 26/06/2018 - 11:25
      +1

      Nothing actually comes with "free shipping". The cost of shipping is just factored into the price. EBay Plus allows sellers to actually only charge the real price without factoring shipping, because eBay is covering the actual cost of shipping.

      • ronnknee on 26/06/2018 - 11:32

        Yes I am aware of that. For a very long time, there has been no incentive to separate the item price and postage. It's better to factor the postage into the price because you get the "Free Shipping" tag, and your listing will be ranked higher.

        Now it's changed. Why list an item for $100 when the seller can list an item for $100 + $20 delivery and get $120 instead?

        • pernunz on 26/06/2018 - 12:01

          I'd assume non eBay Plus members can buy eBay Plus items. By setting a price like you have described, they will be unlikely to receive any sales from non eBay Plus members.

        • ronnknee on 26/06/2018 - 12:25

          @pernunz:

          If and when all the sellers think the same, then you won't have much choice. It's a matter of time.

        • HighAndDry on 14/08/2018 - 21:01

          Why list an item for $100 when the seller can list an item for $100 + $20 delivery and get $120 instead?

          Because someone else can list it for $80 +$20 shipping and steal all your customers.

  • easternculture on 14/08/2018 - 16:50
    -1

    Ebay have picked up on those taking advantage of eBay plus

  • andyken on 19/08/2018 - 01:09

    My ebay plus account has been terminated. I am not a seller. the only thing I remember is changing my address to US for a discount once. here is the message

    We’ve determined that you have not followed our eBay Plus Terms and Conditions. As a result your eBay Plus membership has been terminated, your subscription fee refunded and you are no longer entitled to eBay Plus benefits. This decision is final and appeals will be automatically declined. Your ability to buy and sell on eBay is not affected by this decision.

    Opening new accounts to purchase a new eBay Plus subscription is not allowed. For more information about the eBay Plus program, terms and conditions, please go to:

    https://pages2.ebay.com.au/plus/terms-and-conditions

    Thanks,

    eBay

  • dins on 28/08/2018 - 14:40

    I bought a couple of $20 WW GCs with my eBay Plus account from a seller with just 100 odd feedback and realised that even though shipping was free for me the seller has $15 postage for each GC (which btw were just emailed to me so obviously no actual postage costs) for non-Plus members. Now I guess eBay pays the $30 in postage (2 x $15). So the seller gets $70 for what probably cost them $38 (assuming they purchased the GCs for 5% off) or $40? Do they pick eBay plus items/sellers randomly or something. I see the same seller has listed a fair few of them now. Geez eBay better wake up.

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