The promoted listings, which are intended to provide more visibility to listings on eBay, will be available starting in June for sellers with an eBay stores subscription. Select sellers in the U.S., United Kingdom, Germany and Australia will be invited to use promoted listings at first and then the program will be made available to other sellers later in the year.
The new product will be offered under a cost-per-sell model, meaning the sellers will only have to pay for the ad after a purchase is made, as opposed to paying up front. Based upon the sale price, sellers can choose a percentage of the cost of the good (from 1% to 20%) and if they are the highest bidder, their listing will be promoted. Only if the seller sells the item will he or she pay the percentage from the sliding scale.
"On cost-per-click the seller takes all the risk," said Alex Linde, eBay marketplaces vice president of advertising and monetization. "On a cost-per-sale we're actually taking some skin in the game there as well -- shared risk and shared reward."
"You could argue it's more expensive for us, [but] the reality is because of the unique data we have it gives us end-to-end visibility of the funnel. Launching a cost-per-click model where sellers waste money doesn't help them, doesn't help us."