Etsy revenue, eBay performance standards and Amazon makes free shipping expensive

A summary of the most important 3P Third Party Marketplace news for the week ending 21 February 2016.
22
Feb

Third Party Marketplace News – Etsy revenue, eBay performance standards & Amazon increases free shipping

The last week has been interesting. Etsy seemingly makes more money from sellers now without raising fees. eBay has unveiled new performance ratings for sellers and Amazon has increased the minimum total of goods sold that would enable free shipping.

Sellers now give Etsy more money than they did 4 years ago but without the marketplace raising transaction fees. That’s because Etsy has created a new revenue stream through a line item called Seller Services that didn’t exist 4 years ago. Remarkably it now generates half of Etsy’s revenue, according to CEO Chad Dickerson. As a marketplace operator Etsy has to ensure that they generate revenue for shareholders and ensure that they dont over charge sellers. It is a tricky situation but it seems that Etsy are managing it well. Read more here.

eBay’s new seller performance standards went live on Saturday (20 February). The company also announced that – for the moment, at least – UK sellers will not be marked down for any late deliveries they may incur when using Royal Mail’s Tracked or Signed For services, as long as they have uploaded the tracking number to My eBay. UK and US sellers are about to be given some slack by eBay.eBay calls the new standards for sellers “more objective” and “not based on opinions,” and says they are truly reflective of sellers’ level of service. Read more here and here.

Less than three years after Amazon increased the minimum purchase threshold from $25 to $35 for customers to qualify for free “Super Saver Shipping,” the world’s largest e-retailer is hiking the minimum purchase requirement again—this time to $49. Amazon has increase the minimum purchase threshold to drive customers to subscribe to Amazon Prime. Sellers should keep an eye on whether this change leads to a drop in sales of low value items. Read more here.

Till next week.

Every week, Hendrik Laubscher will be providing third party sellers with a selection of news stories that they need to be aware of. As a Prosper Show participant we strive to ensure that you can focus on your business while we handle all the industry news.