Online Stores

Best Solutions When eBay Sales Are Down

Have you ever noticed your eBay sales are falling? No matter it is an economical issue or a regular seasonal decline, there is one question that sellers ask more than any other: “why are my eBay sales down?”

One month your orders are at the level of the sky and then, all of a sudden, sales just fall off a cliff. You didn’t change anything on your account, so it seems all the process is happening instinctively.

In this article, we will discuss underlying reasons for this phenomenon and also some simple solutions to overcome the situation as soon as possible.

Seven top reasons for the dropdown of eBay sales

  • improved search ranking by competitors

You should always keep your eyes on your rivals; anytime they optimize their titles or use eBay’s keyword research, their search rankings will rise and you will lose the game. A more complex idea is that feedback could be playing a part. If your competitors have favorable feedback to have effectively “got over a bad patch” in their eBay sales history, the algorithm will see their performance heavier and raise their rankings.

  • new competitors in the market

If you see your competitors have no new changes on their listings, that will be a sign of new rivals have started their businesses. Your sales dropdown could be due to the better ranking of your competitors or their less expensive prices.

Another reason could be overseas sellers have entered the market, who can offer your product at a much lower price, because their costs are minimal. Both labor and shipping can be cheaper for foreign sellers.

You also have to watch out for your wholesaler entering the market. Their costs are massively lower than yours and have a bigger margin to play with.

  • The searching algorithm is changed

Algorithms are always updating, with no stop. The algorithm of eBay, Cassini, is also facing new minor or major changes which can result in slow sales for the sellers in a period.

The important thing is Cassini is more buyer-oriented than seller-oriented, so it’s important to approach changes while always keeping the buyer in mind.

  • A gift from eBay

You may think eBay will give each sale for the seller on that specific field but it is wrong and eBay’s algorithm works exactly the opposite.

There are three possible reasons for this. The first reason is, eBay wants the competition to be healthy. If the majority of the market belongs to just a few sellers, they will decide to raise the price of products and this is not good.

The second reason is, eBay’s strategy is to attenuate the main powers of the market and fade the differences. This is because powerful sellers one day will decide to leave eBay, so the value of the platform would be heavily broken.

The third possibility is that eBay is trying to give a chance to new sellers or the sellers with new material to grow up.

  • Competitors have started advertising

It seems your rivals are trying to take a step further and increase their shares of sales using eBay’s Promoted Listings.

For those of you who aren’t familiar with eBay’s Promoted Listings, you bid between 1% and 20% of the sale price in return for enhanced visibility in search results. If you are not using Promoted Listings, fill this gap as soon as you can. But if you are using it and still behind your competitors, this could be because they are offering a larger percentage of the sale price than you are.

 

  • Your feedback is damaged

The impact of bad buyers is not as easy as you think; it is not just limited to lost revenue or bad feedback. It can affect also your metrics and search ranking too.

It is widely thought that your key performance metrics are also taken into account by the search ranking algorithm. So there are some bad buyers which claim “item not as described” or “item has never arrived”, its impact will be even bigger.

  • Systemic bugs

It is clear that eBay is not always infallible and it will make trouble for the sellers, respectively.

The most significant examples are two 2017 and 2020 outages. In 2017, the result of the outage was disabling sellers to list items from the new Seller Hub. If you can’t list your products, you also can’t sell them. The next massive outage in 2020 was more tangible in the UK due to “technical difficulties”.

What should we do?

Although in some cases there is no shortcut for resolving the problem, there are some common tips that you can use to replenish your reduced value in the market as the following;

  • Know your fees

You should always know your math and have your bookkeeping in order. If you have any unessential charges, it is better to ban them immediately. Remember, making a correct correlation between input and output is the golden strategy.

  • Don’t give up

Any trade has ups and downs and “nobody” can remain on the top level for an indefinite time. So you should ways be alert for upcoming difficult days.

Starting a new business from scratch is usually much harder than continuing to run one that is already established. So forget about abandoning your current eBay business account especially when the whole market is in a restrictive position.

  • Keep up your standards

If you are on a tight budget, you should know the first thing to concern about is being a good seller.

  • Be honest with your users in the description

You should know nothing will kill the profit when trustworthiness fades. No matter what you have written below the product, customers will receive it and know the truth. So, it is better to give true information about your goods and avoid confusion.

Conclusion

I hope this article could be useful. Firstly, try to identify why your sales are dropping. If it is a financial matter, try to manage your earnings and lower your costs.

But if the downturn is related to new competition, consider how you can either diversify or demonstrate more value for your products.

 

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