Understanding eBay Promoted Listings
eBay’s Promoted Listings program lets sellers pay for increased visibility. But is it worth it? The answer depends on your items, competition, and margins.
How Promoted Listings Work
The Basics
- You set an ad rate (percentage of sale price)
- Your listings appear in promoted placements
- You only pay when the item sells through a promoted click
- Fees are in addition to standard eBay fees
Promoted Listings Standard vs. Advanced
Standard (Cost Per Sale)
- Pay only when item sells
- Ad rate as percentage of sale price
- Lower risk, good for most sellers
Advanced (Cost Per Click)
- Pay for each click
- More control over budget
- Higher risk, requires optimization expertise
When Promoted Listings Work
High-Competition Categories
In crowded categories with many similar listings:
- Organic visibility is limited
- Promotion can make the difference
- Worth testing if margins allow
Commodity Items
Products where buyers search generically:
- “iPhone 13 case”
- “Running shoes size 10”
- Promotion helps you stand out
Slow-Moving Inventory
Items sitting too long:
- Promotion can accelerate sales
- Worth the fee to free up capital
- Time has a cost too
New Listings
Initial visibility boost:
- New listings need traction
- Promotion can jumpstart sales
- Consider temporary promotion
When to Skip Promotion
Unique/Collectible Items
One-of-a-kind items with specific buyers:
- Collectors will find you
- Organic search is sufficient
- Promotion wastes money
Already High-Visibility Listings
Items ranking well organically:
- Check your listing’s search position
- Don’t pay for visibility you already have
Low-Margin Items
When promotion eliminates profit:
- Calculate net margin after promotion
- If break-even or negative, skip it
Niche Categories
Specialized items with limited competition:
- Fewer competitors = easier organic ranking
- Promotion adds cost without value
Setting Optimal Ad Rates
The Suggested Rate Trap
eBay suggests rates based on competition. But:
- Suggested rates are often higher than necessary
- Start lower and adjust based on results
- Your optimal rate depends on your margins
Rate Testing Strategy
- Start at 2-3% for most items
- Monitor impressions and clicks for 7-14 days
- Increase slowly if no results
- Decrease if selling well at current rate
- Find your floor - lowest rate that maintains velocity
Category Rate Benchmarks
- Electronics: 2-5%
- Clothing: 3-7%
- Collectibles: 1-3%
- Home goods: 3-6%
These are starting points—your results will vary.
Measuring ROI
Key Metrics
Impression Share What percentage of impressions come from promotion?
Click-Through Rate Are promoted impressions converting to clicks?
Conversion Rate Are promoted clicks converting to sales?
True ROI (Additional sales from promotion - promotion cost) / promotion cost
The Attribution Problem
eBay attributes sales to promotion if:
- Buyer clicked promoted listing
- Purchased within 30 days
But would they have bought anyway? Hard to know.
Testing for True Impact
A/B Testing (if volume allows)
- Promote half your inventory
- Keep half organic
- Compare sell-through rates
- Calculate true lift
Before/After Analysis
- Track sales velocity before promotion
- Enable promotion
- Compare velocity change
- Account for seasonality
Promotion Strategy by Business Type
High-Volume Commodity Sellers
- Promote aggressively
- Small margins at scale
- Test rates constantly
- Automate where possible
Vintage/Collectible Sellers
- Promote selectively
- Focus on stale inventory
- Keep rates low
- Trust organic for unique items
Part-Time Sellers
- Start organic
- Promote only slow movers
- Keep it simple
- Don’t overthink
ListForge Integration
ListForge helps optimize your promotion strategy:
- Identifies items likely to benefit from promotion
- Suggests starting ad rates based on margins
- Tracks promotion ROI across your inventory
The Bottom Line
Promoted Listings are a tool, not a requirement. Use them strategically:
- Calculate your margins before promoting
- Start with low rates and optimize
- Focus on items where promotion makes sense
- Track results and adjust
- Don’t promote everything - organic visibility is free
The best promotion strategy is selling great items at competitive prices. Promotion amplifies good listings—it doesn’t fix bad ones.