eBay sellers now enjoy the option for the PPC, eBay did launch a promotion that was working better than the Amazon PPC as you are aware in the promotion system eBay only takes a fixed percentage from sales when you actually make a sale.

Unlike Amazon PPC, where Amazon just takes an exorbit amount of money from sellers and many times the ACOS is as high as 500% which effectively means if you spend $100 and you will only get $20 back in sales from Amazon.

It is a bit of sad news for eBay sellers as the promotion was a very fair system where you only have to pay if you make a sale however with PPC, eBay is going on the Amazon path to turn around its business model and effectively triple or may be more, its profit on Ads.

There is nothing wrong with making money but when companies start giving them space to advertisers more than the organic results, it’s a concern, This trend actually sets by Amazon and now eBay is simply following which is beneficial for them.

Let’s take a look at how eBay Advertising listing PPC actually works compared to Promoted sales

As you can see in the above example, the seller has managed to get 5236 sales worth £19994.95 with the promoted listing where he spends around £2241.79. Looking at this data its around a 14% extra fee on top of what eBay generally charges, So you can imagine you really need a profit margin of like 50% if you want to make even 5% from your sales.

It is needless to say that you still need to pay for wages, warehousing fee, tax, VAT & of course shipping charges to make a penny. The only one winning here is either Amazon or eBay.

Now look at the promoted listing

You can check in the above example where the base sales is £28618 and promoted sales is around £13383 , So if you look the right way then you can figure it out that if there is no promoted sales , this seller could have made only half of his current sales and there is no need to explain here that he has either made zero or no profit with promoted sales.

So looking at both the example it is crystal clear that both are hazardous to your financial health so why do sellers use them ?

1. It keeps the cashflow running
2. Amazon actually gives ranking benefit and if your sales is high there is a good chance that you will rank organically higher.
3. liquidiating an old stock
4. quick turnaround of stock
5. Making zero or no profit and just looking to promote its product or brand

There are many reasons but I have seen some strange reasons where the seller has no idea that he is actually losing money by offering this pricing and as they are turning over in millions, it will take them a long time before they realize the impact of the product sales or loss.

Please do let me know what you do you think about these oversevations.