TBO.com - TBO is Tampa Bay Online

EBay To Lower Listing Fees, Raise Commissions

ADVERTISEMENT

By AMANDA FEHD, The Associated Press

Published: January 30, 2008

SAN FRANCISCO - EBay Inc. said Tuesday that it will cut by up to 50 percent the fees it charges sellers to list their goods online, in an effort to boost listings and keep pace with other burgeoning e-commerce sites.

To balance the fee cut, the company plans to increase its commission on items that do sell - a method eBay says sellers prefer because it lowers their risk if items do not sell.
EBay will also increase fees on some items, including auctioned goods selling for less than $25. EBay's fee for those transactions will rise 67 percent, to 8.75 percent of the final sale price.

Incoming Chief Executive Officer John Donahoe told 200 of eBay's top North American sellers in Washington that a majority of sellers' fees will go down, and that the new fee structure is going to be driven by the success of sellers.

"EBay is at a crossroads," Donahoe said. "To maintain our leadership position in e-commerce, we can no longer make incremental changes. We need to redo our playbook and we need to do it fast. We need to take bold action to meet the expectations of buyers and sellers around the world." EBay has struggled with flattening growth and a temporary drop in the number of items for sale on its site. As part of the changes, photo fees also will disappear. The new fee structure goes into effect Feb. 20 in the United States. Along with changes to the fee structure, eBay said it will change how sellers show up on customer searches. Those with high rates of customer dissatisfaction will get lower exposure in a search, the company said.

EBay's top sellers will also receive a discount. Bill Hamilton, a Georgia-based "power-seller" who specializes in collectibles, wasn't optimistic that the changes would be well-received.

"Most sellers will go ballistic over the feedback changes and power seller discount. I don't see any real incentive for the average seller to list more with this new fee structure. I think their 'bread and butter' core auction listings will continue to diminish as a result," Hamilton said in an e-mail.

Share this:

Loading Comments...

Email Print

ADVERTISEMENT