Why eBay changes commission fees
San Jose, Calif.-based eBay, which is struggling to compete with Web retailers such as Amazon.com Inc. (AMZN), said sellers would be able to list five products for auction every 30 days without having to pay up-front listing fees.
But the move could prove ineffective because the new pricing structure may actually cost sellers more in commission fees than under the previous pricing structure, depending on the auction starting price and final selling price.
EBay has in the past year come under intense criticism from small sellers who have grown disenchanted with fee changes that made it easier and cheaper for bigger merchants to list products in large quantities.
Critics have argued those changes, part of the company’s ongoing turnaround strategy, have transformed eBay from a quirky online auction market into a high-volume fixed-price retail site.
The company said it hoped Tuesday’s changes would attract new sellers to try the site without upfront costs.
“By eliminating the upfront costs of selling on eBay, we hope this new structure will encourage all sellers – new, occasional or experienced – to use the offering as a cost-effective way to sell on our site and earn a little extra cash,” said Lorrie Norrington