Ebay to Lower Fees for Sellers

Online auction site aims to compete with Amazon

   

eBayNew185 Ebay to Lower Fees for SellersOnline auction powerhouse eBay (NASDAQ:EBAY) announced that it will simplify or even eliminate some of its fees.

The changes — most of which will begin April 16 and all by May 1 — will cover a broad swath of what the company refers to as “final value fees,” reports Reuters.

Most to benefit will be the smaller sellers on eBay. The new program will allow sellers to list up to 50 items per month with no listing fee and a final sales fee of 10%. Previously, sellers — as opposed to auction posters, who had always listed for free — had to pay a 50-cent listing fee in addition to any other fees. For larger volume sellers the cost per sale will now range from 4% to 9%.

The move is designed to allow eBay to better compete with Amazon (NASDAQ:AMZN). The announcement was accompanied by a chart that compared the two company’s prices for online sellers.

“EBay is really coming out swinging against Amazon,” Scot Wingo, CEO of ChannelAdvisor, told Reuters.

Ebay gained 2% yesterday after the announcement.

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Article printed from InvestorPlace Media, http://investorplace.com/2013/03/ebay-to-lower-fees-for-sellers/.

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