Online Workshop on changes in Mobiles & Accessories category, Feb 3, 4 PM

[sapana@ebay.com]

Dear Sellers,

As part of our continuous effort to improve user experience for our members, we are making some important changes in the Mobile & Accessories category:

1. Mobiles & Accessories category will be divided into two categories called Mobile Phones and Mobile Accessories. This will give mobile accessories increased exposure. It will also improve search experience in Mobile Phones category, which today is compromised due to presence of related accessories.

2.The Final Value Fee (FVF) for Mobile Accessories category will be 5%. The FVF for Mobile Phones will continue to be at 1%. This new FVF structure will help in better aligning the eBay pricing structure to the seller’s margin structure in Mobiles Accessories category.

These changes will apply from February 7th 2010. In the new Mobiles Accessories category, all listings that sell successfully post February 7th 2010 00:00:01 IST will be charged 5% FVF. For example – If the item was listed on 6th February, and it sells successfully on 7th February, the FVF will be charged at 5%. The successful listings in Mobile Phones category will continue to be charged at 1%. There will be no changes to the Insertion Fee or Final Value Fee for any other category.

All the current or scheduled listings of Mobile Accessories sub-category will be automatically migrated to the new category of Mobile Accessories. The listings created on or after 7th February 2010 will need to be created under the new category, Mobiles Accessories.

We understand that you will need to make some changes to your current business plan to accommodate these changes. If you wish to discuss any concerns you might have about the impact of these changes, please join the Category Managers for a Mobiles & Accessories workshop on 3rd February 2010, 4 PM on this thread. You can also contact our Customer Support Team for any help.

Regards

[rajelectroniks]

OMG, FVF raised directly to 5% from the present 1% level. Ebay you are out to kill me and my family. This is not good at all how many poor sellers will be effected by this irrational and irresponsible action by ebay and by the way please explain what do you mean by "This new FVF structure will help in better aligning the eBay pricing structure to the seller’s margin structure in Mobiles Accessories category." what does this mean in simple words ???? *************************
Regards.
Raj Electroniks.

[madmahesh2009]

5% FVF for mobile accessories is a bit high.I have been a seller before and i sell no more in eBay.It is sellers and buyers both going to be affected.Sellers raise the price,buyers pay more naturally sales come down.Who gains because of this except eBay???

[gsmprince]

5 % FVF is too high I don’t understand policy behind this, why u kept luxury item (Mobile phones) FVF 1 % we already doing very competitive pricing in mobile accessory category, and this way you are putting more burden on us, how will we survive. you are not thinking about us at all

rajiv

[mobilesstores]

There is no way memory cards can sell on ebay now with 5% margin structure.... Offline market is to competitive these days.

[snrama]

Hi,

This is a very bad move who are dealing under technology category.

I deal with most of the branded products (like Plantronics Bluetooth Headsets, Nokia Accessories, Blackberry accessories etc) which comes under Mobile Accessories.

Now sellers are paying approx 5.5% PaisaPay and FVF (excluding Store fee and Listing fee) for technology categories. Now Mobile Accessories is the starting category where they charge 10.5% and as per my view, it will be implemented on other tech categories very soon.

Most of the branded products comes with 8-10 % margin and if eBay makes the percentage so high, with all the fees, seller will remove most of the products selling under Mobile Accessories as any seller cannot sustain with paying a lot of amount one or the other way to the portal.

Better Aligning of the eBay pricing structure to the seller will only be help full if the FVF fee is low. ---------------
With Regards,
Navaneeth (snrama) 😉

[sapana@ebay.com]

Hi,

On behalf of the Technology Category Team, I am posting the following responses.


Thanks for your replies and appreciate your feedback! At the outset, allow us to set the context, after which will address the specific queries. We believe there is large untapped potential in Mobile Accessories. Take the example of any offline mobile store – the number of transactions (and inventory) of accessories far exceeds that of handsets. It’s true that mobile handsets has grown into a very strong product line on eBay, but we feel we haven’t done justice to Accessories. Creation of a new meta for Mobile Accessories is a step to address this. This will have various benefits – the listings will receive higher visibility and sales (the creation of Memory into a new meta in 2008 is an example). We will also be promoting these products aggressively through various merchandising initiatives.

The fee structure on eBay is arrived at taking into account product margins & seller profitability to allow for sustainable business for sellers & value deals for buyers. The drastic reduction of FVF across all Technology categories to 1% in 2008 is an example. We believe that this increase in FvF to 5% accurately reflects the higher margin structure that exists in accessories versus handsets. However, please note that this increase applicable only to Mobile Accessories, and all other categories within Technology continue to have an FVF of 1% only.

Regards,
Tech Team

[sapana@ebay.com]

Hi rajelectroniks,

We understand your concern. However, we hope that the above context will give you a better window on why the decision was made.

The added visibility to accessories & the increased merchandise push should result in higher sales for Accessories category. Also, equally important is that we will significantly improve the user experience in Mobiles cateogry which will improve business for sellers listing in Mobiles Cateogry.

We see it as a win win for both sellers (increased business) and buyers (improved experience and access to more products).

Regards,
Sapana

[sapana@ebay.com]

Hi madmahesh2009,

Given the margin structure of Accessories category and the strong competition that is inherent to a marketplace like eBay, we believe the item price will continue to remain very attractive for our buyers. Also, the increase in visibility should lead to increased sales for Sellers

Regards

[sapana@ebay.com]

Hi gsmprince,

While you described mobiles as a luxury item, the margins in mobile handsets are very thin...possibly the lowest across all of Technology products. Mobile Accessories provide higher margins, and the creation of a new meta, coupled with our efforts to promote these products will surely boost sales for these accessories. We will encourage you to increase your range of Accessories to benefit from the increased demand that will follow once the changes roll out.

Regards,
Sapana