Friday, January 25, 2008

EBay to change its fee structure and focus more on fixed priced listings



Changes are on the way for Ebay.





With a desire to "power down a bit" Meg Whitman has given up day-to-day control of eBay. Incoming chief executive John Donahoe says that eBay is not growing as rapidly as he would like, and he sees the greatest opportunity for growth in increasing the site’s offering of fixed-price items.

He plans to upgrade the site and change the way eBay charges sellers for listing items. Donahue indicated that they may lower the fees people pay to list an item for sale, but raise the commission that eBay takes on completed sales.

EBay is also going to cut the fees for adding photos to listings because that is more attractive to buyers.

To top it off, an advantage will be given in search results to sellers who offer reasonable and fast shipping — even free shipping. The increased visibility is a reward for those merchants who treat customers best.

Ebay had nearly $60 billion worth of merchandise trading hands last year. Changes in eBay’s fee structure are expected to be formally announced next week.


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