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EBay Slashes Listing Fees 75% to Lure Back Sellers

The online auction giant sees 'Amazonification' as a path to profit

By Jim O'Neill,  Newser User

Posted Aug 20, 2008 9:18 AM CDT

(Newser) – Looking to compete more aggressively with Amazon for users who want to sell items at a fixed cost, eBay is changing its pricing model, lowering listing fees by up to 75% and increasing its final sales commission, BusinessWeek reports. The goal is to increase inventory of items listed at a "buy-it-now" price, increasingly popular with buyers weary of waiting for auctions to play out.


Listing items on Amazon is free, while eBay has made as much as  60% of its shopping revenue from upfront fees charged whether or not an item sells. The new system will mean 80% of its income will come from commissions. Amazon's fixed-price business has been surging, as eBay's has slumped. "From 2000 to the end of 2007, eBay kind of fought the trends—they tried to keep auctions the focus of the company," says one software executive. "And buyers voted with their wallets."


Jeff Bezos, Amazon.com founder and CEO.
Jeff Bezos, Amazon.com founder and CEO.   (AP Photo)
Posed photo shows a visitor grabbing the logo of internet auction house Ebay at the trade fair for digital marketing OMD, 25 September 2007 in Dusseldorf.
Posed photo shows a visitor grabbing the logo of internet auction house Ebay at the trade fair for digital marketing OMD, 25 September 2007 in Dusseldorf.   (Getty Images)
an eBay employee waits outside a building on the eBay campus.
an eBay employee waits outside a building on the eBay campus.   (AP Photo/Tony Avelar)
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