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EBay cuts listing fees as competition increases

Online auction giant under pressure from Amazon.com and other rivals


SAN FRANCISCO (Marketwatch) -- EBay Inc. said Wednesday that it would cut some listing fees "dramatically" as the online auction giant responds to increasing competitive pressure from such rivals as Amazon.com.


Starting Sept. 16, eBay will charge a flat rate of 35 cents to list an item for sale under a new "Buy It Now" format, which eschews the traditional auction model and allows buyers to pay a fixed price for an item. That fee would cover a 30-day listing and could include multiple items; sellers had previously paid fees between 35 cents and $4 per item for a week.
"We aim to be the most competitive marketplace online, and this new, incredibly low pricing helps us achieve that goal," said Lorrie Norrington, president of eBay Marketplaces, according to a statement.
The change by eBay does not affect items listed under its more traditional auction format. The company slashed fees for that category earlier this year.
The move comes as eBay is under growing threats from rivals -- particularly Amazon.com.
The e-tail giant has built a substantial business with third-party sellers, who market items under a fixed-price format that are often advertised alongside the same, new item offered for sale by Amazon.

Colin Sebastian of Lazard Capital Markets said eBay's price cut will not likely cause "a significant immediate shift of momentum" from Amazon, as the company's platform is still attractive to buyers and sellers.
"However, eBay's announcement today clearly raises the stakes in e-commerce, and it will be important for investors to pay close attention to marketplace trends through the holiday period and into next year," Sebastian wrote in a Wednesday note to clients.


This is good news - never was a fan of Ebay and their hidden fees - nothing beats Craigslist however