eBay Slashes Listing Fee in Half

Company hopes to drive growth with new policies
By Kevin Spak,  Newser Staff
Posted Jan 29, 2008 1:33 PM CST
An eBay employee waits outside a building on the eBay campus in San Jose, Calif., on Wednesday, Nov. 14, 2007. Ebay announced today that it will drastically cut its listing fees in an effort to increase...   (Associated Press)
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(Newser) – eBay is chopping its listing fee in half and will take a bigger chunk out of the price of sold items, a change that should lower risk for sellers and encourage more listing, the AP reports. The online auction giant is also changing the way its search results work, the company announced at a gathering today of its top 200 sellers: Negative feedback will hurt sellers’ placement.

As other e-commerce sites like Amazon have stepped up competition, eBay has seen its growth sputter to a stop. Listings rose 4% in the fourth quarter but had fallen for two quarters before that. Site traffic rose an anemic 2% last year. Incoming CEO John Donahoe has promised sweeping changes in everything from the product to the business model.