EBay Takes on Amazon with Lower Fees, Local Offer App and Big Data Sales

new-ebay-logo,9-C-352848-13eBay is preparing to do battle with Amazon for the title of Top Shop. They made several announcements this week that were both smart and surprising.

First, AdWeek says that eBay is now prepared to open up their big data box to advertisers. With both buyers and sellers and their parental link to Paypal, eBay has access to an enormous amount of customer data.

eBay’s head of digital display in North America, Stephen Howard-Sarin spoke about the change at AdExchanger’s Programmatic I/O conference;

Someone might be OK with—and even appreciate—eBay knowing who they are and what pair of shoes they’ve bought or are looking to buy. However, “they expect eBay not to tell anybody else who they are. But that doesn’t mean we can’t create segments of shoe shoppers and let someone like Zappos—or actually not Zappos [which is owned by Amazon]—to target against those shoe buyers.”

As always, privacy will be an issue but come on people, this is the new world. . . time to let that fear go.

TechCrunch is reporting an upgrade to eBay’s RedLaser shopping app. The app started out as a bar code scanner. People used it to easily find the best “online” price while shopping for items in a physical store. eBay bought the app in 2010 and soon expanded it to include coupon deals through RetailMeNot. The latest upgrade adds on a Local Deals tab. They’ve also created profile pages for stores so the user can follow their favorite brands. It also includes push notifications so you get deal alerts when you’re near the store.

Basically, they’ve taken this app from a showrooming gadget and turned it into a full-feature shopping and deal app.

The biggest news is the upcoming change to seller fees on eBay.

As of March 16, they’re virtually eliminating the cost of listing an item for sale on the site. Basic users have been able to upload 50 free auctions a month for awhile, but eBay was still charging around .50 for Buy It Now listings. These listings are the ones that compete with Amazon’s marketplace – which is free to list. It’s not a lot of money, but you had to pay it even if your item didn’t sell so it kept people (like me) from listing a lot of iffy items.

eBay is also changing their post-sale fee structure. Instead of a sliding scale based on final value and category, they’re moving to a flat 10% of the final value up to $250. That makes it so much easier to calculate the profit prior to listing an item. It’s a huge change. It means people will be paying less per auction, which should encourage them to list more items – thus increasing eBay’s profit margin.

They also made extensive changes to the store programs. You can read about it here.

I’ve always been an eBay fan, as a buyer and a seller, so I’m very excited by the changes and I’m anxious to see a positive effect in my bottom line as well.

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  • http://www.danieljamesphotography.net/midlands-wedding-photography Wedding Photograpy Birmingham

    That’s two big companies going head to head, might bring the listing prices of things down on both sites I guess :)

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  • PhilipCohen

    Oh No, Not Another “Reduction” in eBay Fees … http://bit.ly/YvxFEg

  • Krizz Gonzalez

    Oh well, I still prefer shopping at Amazon. I got frustrated at ebay when I ordered a playset for my kids and it took them over a month to deliver my orders!!
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  • Joe

    If you are looking for an eBay fee calculator, especially since the Rolbe one went down, then check out the new one that I created! It’s very similar to the look and feel of the old calc. Check it out and let me know what you think! You can also contact me contact@feensap.com

    http://www.feesnap.com/ebay.html

  • ebaysucks

    Cynthia Boris, you are a total doofus. The fees are going up for everything $100 and over, and more than double! Example: a $2000 item used to cost you around $85 in fees. Now it will cost you $200. And that doesn’t include the paypal fees! They are trying to get rid of casual sellers. The solution is to go with a an ebay store at $20. But you have to pay that monthly and the final fees are for a $2000 item will be over $100. Still higher than before. For casual buyers and sellers in the $100-$2500. Ebay is history!

  • http://bit.ly/11F2eas Philip Cohen

    “EBay Takes on Amazon with Lower Fees …”—LOL … http://bit.ly/YvxFEg

    Yes, in fact, the fees are going up for everything $100 and over, and more than double! Example: a $2000 item used to cost you around $85 in fees. Now it will cost you $200. And that doesn’t include the paypal fees! They are trying to get rid of casual sellers. The solution is to go with a an ebay store at $20. But you have to pay that monthly and the final fees are for a $2000 item will be over $100. Still higher than before. For casual buyers and sellers in the $100-$2500. Ebay is history!

    And, eBay is demonstrably the greatest calculated facilitator of auction fraud on consumers that the world is ever likely to know … http://bit.ly/11F2eas

    And, the clunky PayPal at physical point of sale—LOL … http://bit.ly/UVXx53

    Hello “MasterPass”, goodbye clunky PreyPal—it has not been nice knowing you …

    And, always remember, whenever an eBay spokesperson’s lips are moving, they are invariably being disingenuous …

    But, “The band continued to play on, even as the bow dipped lower and lower.”—The Titanic/eBay Story …