In an effort to attract more sellers andlistings to its online marketplace, eBay announced pricingchanges that reduce listing fees for fixed-price items and do away withlisting fees for sellers who occasionally auction items on its site.

The moves reflect eBay’s realization thatit has two main types of sellers—professional merchants andhobbyists—on its online marketplace, says Scot Wingo, CEO ofChannelAdvisor Corp., a provider of e-commerce technology and servicesthat help retailers sell through multiple online channels. “The movesreflect a win for both types of sellers,” he says.

Starting March 30, eBay is introducing afour-tiered price structure for its fixed-price listings. There arethree monthly subscription levels—basic ($15.95), anchor ($49.95) andpremium ($299.95)—that offer discounts on listing fees. The ratesreduce the fixed-price listing fees per product from 50 cents forsellers without a store, to 20 cents for basic, 5 cents for anchor and3 cents for premium stores. Subscribers also can insert eBay-hostedpictures for free.

“Lowering the threshold to list an itemmeans that merchants will increase the number of items they put on thesite,” says Wingo. “Those merchants could see significant savings onupfront costs.”

EBay also says all of the site's fixed-priced inventory will appear in eBay's main search results.

Starting March 30, sellers will be able toauction up to 100 items for free every 30 days. When an item sells,eBay will take 9% of the sale price or $50, whichever is less. EBaycurrently allows sellers to auction up to five items for free every 30days and charges 8.75% of the sale price or $20, whichever is less.

After sellers exceed the 100 free listings,they are subject to new listing fees and commissions that varydepending on the item’s starting and sale prices. The fees range from15 cents to $2, depending on the item’s starting price. EBay’s currentrange is 15 cents to $4.

EBay made a similar change to fees in someEuropean markets in 2008, and those changes nearly doubled the numberof listings on eBay in those countries, CEO John Donahoe told analystslast week.

EBay is also expanding its buyer protectionservice to all buyers. The service gives buyers and sellers access tocustomer service representatives to resolve disputes. If a sellercannot resolve the issue, the service, which excludes categories likereal estate and vehicles, will refund a buyer’s money. Previously theservice was only available for transactions that used eBay’s paymentservice, PayPal.

“With eBay buyer protection, customers canshop with confidence as they take advantage of the great deals andselection eBay sellers offer,” says Lorrie M. Norrington, president ofeBay Marketplaces. “We’ve now got you covered on eBay every day.”

Details here: http://pages.ebay.com/sellerinformation/news/FeeUpdate2010.html
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