Marketplace
Hey guys, thought I would share some info with you all regarding all those 20% off eBay deals. The "who funds the discount" question seems to come up a lot in the comments etc. My eBay store received an invite to participate in one and I was pretty excited for the extra promotion until I read the following:
"The cost of funding the Discount Amount will be divided as follows:
eBay: 5%
You: 15%"
Not surprised really but was hoping for a bit better, I seem to remember they had a 10% off one last year which eBay funded completely but unfortunately not this time around. Maybe some of the big players get some better deals (The Good Guys etc). There also doesn't seem to be any way to have select products included, it's the whole store or nothing. Considering some of our products barely have 15% profit margin after costs and clearance items even less, I can see why stores pump some of their prices 10-15% (not that I am condoning it but food for thought nonetheless).
Thanks skinner for letting us know about how this works as I always get worked up about price-hikes when the sales come along but am glad that I have a clearer picture of what is going on behind-the-scenes now.