From the 1st of June, eBay will be changing the way that Promoted Listing Fees will be calculated. This will likely mean that the programme is more expensive for sellers. Hopefully, longer term, this will mean sellers will adjust their bid rates down to compensate as they see their bills increase.
eBay have emailed sellers using the programme to inform them of this change.
What’s changing with Promoted Listing Fees?
Currently Promoted Listing Fees are based on the final price of the item. From June the fees will be calculated based on the total amount of the sale. This will mean Promoted Listing Fees will be aligned with the way eBay calculate final value fees, which is charged on the invoice total including any taxes, shipping, and other applicable fees.
In certain markets, any applicable VAT may be applied to your advertising fees.
Ad Fees estimation
Another change is that the Ad Fees estimation will no longer be available. The new ad rate calculation will include variables, such as buyer location and shipping costs, that are not determined until the sale is complete. This means that, for example, if you have free standard shipping but a buyer upgrades to express shipping for a premium, that your ad fee for that sale will also increase.
You’ll still be able to view your ad fees from the Transactions section of your Payments tab, or in your sales report. If you’ve been using Promoted Listings regularly, you should have a feel for roughly how much it costs you, just bear in mind that from June it will be slightly more… unless you are a seller who’s products are low cost with relatively high shipping costs in which case your ad fees will rise significantly.