eBay to cut listing fees but boost commissions
Tuesday Jan 29 - eBay Inc. announced that it would cut listing fees by up to 50 percent,
in an effort to boost listings and keep pace with other burgeoning e-commerce sites.
However,the company plans to increase its commission on items that do sell, as a move to
“balance” the fee cut. The greatest fee increase will come for goods selling for less than
$25. EBay’s fee for those transactions will increase by 67 percent, to 8.75 percent of the
final sale price.
The new fee structure will go into effect on February 20 in the United States. More pricing
changes are coming shortly in the United Kingdom and Germany.
EBay’s various fees have long been a point of contention for its sellers.
The company has been facing increasing competition from other e-commerce sites such as
Amazon.com, which does not charge a listing fee.
These changes came as outgoing chief executive Meg Whitman announced she would retire at
the end of March. Incoming CEO John Donahoe said he would aggressively change eBay’s
product, customer approach and business model.
Leave a Reply