Ebay to Lower Fees for Sellers

by Nate Wooley | March 20, 2013 11:44 am

eBayNew185 Ebay to Lower Fees for Sellers[1]Online auction powerhouse eBay (NASDAQ:EBAY[2]) 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[3].

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[4]). 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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Endnotes:
  1. [Image]: http://investorplace.com/wp-content/uploads/2012/09/eBayNew185.jpg
  2. EBAY: http://studio-5.financialcontent.com/investplace/quote?Symbol=EBAY
  3. reports Reuters: http://www.reuters.com/article/2013/03/19/us-ebay-fees-idUSBRE92I0UH20130319
  4. AMZN: http://studio-5.financialcontent.com/investplace/quote?Symbol=AMZN
  5. Amazon Scores $600M Cloud Deal With CIA: http://investorplace.com/2013/03/amazon-scores-600m-cloud-deal-with-cia/
  6. Amazon Trims Price of Biggest Kindle Fire: http://investorplace.com/2013/03/amazon-trims-price-of-biggest-kindle-fire/
  7. Barnes & Noble Chairman May Take Retail Stores Private: http://investorplace.com/2013/02/barnes-noble-chairman-may-take-retail-stores-private/

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