arXiv — Machine Learning · · 3 min read

Marginal Expected Revenue for Jointly Ranking Auction and Fixed-Price Listings in E-Commerce Sponsored Search

Mirrored from arXiv — Machine Learning for archival readability. Support the source by reading on the original site.

Computer Science > Information Retrieval

arXiv:2609.01628 (cs)
[Submitted on 8 Aug 2026]

Title:Marginal Expected Revenue for Jointly Ranking Auction and Fixed-Price Listings in E-Commerce Sponsored Search

View a PDF of the paper titled Marginal Expected Revenue for Jointly Ranking Auction and Fixed-Price Listings in E-Commerce Sponsored Search, by Greg Kocher and 1 other authors
View PDF HTML (experimental)
Abstract:E-commerce search ranking must balance multiple objectives--relevance, user engagement, and platform revenue--when allocating impression slots to competing listings. Estimating the expected revenue component is well understood for fixed-price items, but becomes challenging when marketplace inventory includes mixed listing formats such as pure auctions and hybrid "Auction with Buy It Now" (ABIN) items, where prices evolve dynamically and the final transaction value is unknown at ranking time. Yet auction and ABIN listings account for a meaningful share of inventory and transaction volume on platforms such as eBay, and are a popular format for individual sellers and for unique items with unclear value. We extend the standard Expected Cost-per-Mille (eCPM) framework to auction and ABIN listings by deriving a marginal eCPM (meCPM) that captures the incremental value of showing one more impression of an item whose price is still evolving. The resulting formulation extends the familiar fixed-price eCPM--which is already inherently marginal--to auction dynamics, allowing unified ranking of fixed-price, auction, and ABIN listings under a single objective. We then describe a practical production implementation that approximates this objective, addressing cold-start challenges by bootstrapping from existing engagement models. Online A/B tests at a large e-commerce platform showed positive revenue gains and statistically significant improvements to user metrics, and the system was deployed to production.
Comments: Accepted at the SIGIR eCom'26 Workshop, July 24, 2026, Melbourne, Australia
Subjects: Information Retrieval (cs.IR); Machine Learning (cs.LG)
Cite as: arXiv:2609.01628 [cs.IR]
  (or arXiv:2609.01628v1 [cs.IR] for this version)
  https://doi.org/10.48550/arXiv.2609.01628
arXiv-issued DOI via DataCite

Submission history

From: Greg Kocher [view email]
[v1] Sat, 8 Aug 2026 17:15:34 UTC (43 KB)
Full-text links:

Access Paper:

    View a PDF of the paper titled Marginal Expected Revenue for Jointly Ranking Auction and Fixed-Price Listings in E-Commerce Sponsored Search, by Greg Kocher and 1 other authors
  • View PDF
  • HTML (experimental)
  • TeX Source

Additional Features

Current browse context:

cs.IR
< prev   |   next >
Change to browse by:

References & Citations

Loading...

BibTeX formatted citation

loading...
Data provided by:

Bookmark

BibSonomy Reddit
Bibliographic Tools

Bibliographic and Citation Tools

Bibliographic Explorer Toggle
Bibliographic Explorer (What is the Explorer?)
Connected Papers Toggle
Connected Papers (What is Connected Papers?)
Litmaps Toggle
Litmaps (What is Litmaps?)
scite.ai Toggle
scite Smart Citations (What are Smart Citations?)
Code, Data, Media

Code, Data and Media Associated with this Article

alphaXiv Toggle
alphaXiv (What is alphaXiv?)
Links to Code Toggle
CatalyzeX Code Finder for Papers (What is CatalyzeX?)
DagsHub Toggle
DagsHub (What is DagsHub?)
GotitPub Toggle
Gotit.pub (What is GotitPub?)
Huggingface Toggle
Hugging Face (What is Huggingface?)
ScienceCast Toggle
ScienceCast (What is ScienceCast?)
Demos

Demos

Replicate Toggle
Replicate (What is Replicate?)
Spaces Toggle
Hugging Face Spaces (What is Spaces?)
Spaces Toggle
TXYZ.AI (What is TXYZ.AI?)
Related Papers

Recommenders and Search Tools

Link to Influence Flower
Influence Flower (What are Influence Flowers?)
Core recommender toggle
CORE Recommender (What is CORE?)
About arXivLabs

arXivLabs: experimental projects with community collaborators

arXivLabs is a framework that allows collaborators to develop and share new arXiv features directly on our website.

Both individuals and organizations that work with arXivLabs have embraced and accepted our values of openness, community, excellence, and user data privacy. arXiv is committed to these values and only works with partners that adhere to them.

Have an idea for a project that will add value for arXiv's community? Learn more about arXivLabs.

Discussion (0)

Sign in to join the discussion. Free account, 30 seconds — email code or GitHub.

Sign in →

No comments yet. Sign in and be the first to say something.

More from arXiv — Machine Learning