In a move that the company wisely decided not to announce via a press release to investors, eBay (NASDAQ: EBAY) has lowered the listing fee for fixed-price items on its site to 35 cents, down from as high as $4, depending on the price. The listing duration will also jump from 7 days to 30; those changes will be at least partially offset by an increase in the commission on sold items but eBay did not break down any details on that.According (subscription required) to The Wall Street Journal, "The company is playing catch-up to other Web sites that have focused on fixed-price sales."
That may be true for now but the fact that eBay feels a need to court that market with aggressive price cuts indicates that the company recognizes the many sellers are opting for that over its own flagship auction business. Almost since inception, eBay has miraculously managed to avoid a price battle with competitors, and has been able to steadily increase its fees while much-hyped and well-funded imitators like Auction Universe fell by the wayside. It may be that sites like Amazon (NASDAQ: AMZN) are finally posing a serious threat.
It also may be that eBay is just messing with people's minds. Back in February when eBay announced its last "fee cut", sellers protested, alleging that the increase in the commission more than offset the decrease and accused eBay of fuzzy math.
Details of the new fee structure will tell us whether eBay is desperate of just manipulative.
Reader Comments (Page 1 of 1)
8-21-2008 @ 11:38AM
Barbara said...
I knew it! Nothing eBay does makes the reporters happy! This latest news is fantastic! It will save sellers tons of money, while encouraging more listings and consequently more sales -- a win-win situation for everyone. So why not cheer the move, instead of putting on another sour face? And as an investor in eBay, as well as a buyer-seller, I'm confident that in the long run investors will win out as well.
8-29-2008 @ 1:04AM
formerebayer said...
Oh please, IF you are a seller, the math still doesn't add up. Greedbay continues to take more from the seller so it is no longer profitable, lower listing fees or not.
I no longer buy or sell on the site. Talk about manipulation, I can get that from a REAL boss and I have the choice to leave or put up with it. I chose to leave.
Good Riddance Ebay!
9-01-2008 @ 2:24AM
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9-01-2008 @ 2:28AM
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9-01-2008 @ 2:33AM
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9-22-2008 @ 12:49PM
Pickers Parts said...
Certainly a bad omen. Ebay for years has never had to compete with anyone. How did they get here? The creep affect. Creeping fees has slowly detered sellers and have sent them with open arms to its largest competitor. The new fees are bad news for sellers. When a $10 item sells, you can expect to pay approximately 20% in fees to ebay and paypal. The numbers don't lie.