| SAN FRANCISCO, March 19
SAN FRANCISCO, March 19 EBay Inc said
on Tuesday it will overhaul fees for sellers on its online
marketplace, stepping up competition with Amazon.com Inc
EBay is scrapping its complex, tiered set of "final value
fees," calculated as a percentage of an item's sale price, and
introducing flat-rate fees based on product categories.
Many of eBay's listing fees, a bone of contention among
sellers, are also going away. Most of the changes kick in April
16, with others taking effect May 1.
Many sellers will pay lower fees after the changes,
especially those who are not volume sellers and list less than
12,250 times per month, according to Scot Wingo, chief executive
of ChannelAdvisor, which helps merchants sell on online
marketplaces including eBay and Amazon.
"These fee changes definitely make eBay more competitive,"
EBay's move comes as sellers on Amazon's marketplace become
increasingly upset with fee increases.
The company's announcement about the new fees included a
table comparing its charges to Amazon's fees, a move that Wingo
said he had not seen before.
"EBay is really coming out swinging against Amazon," Wingo
For consumers who sell only a few items a year, eBay will
offer 50 free listings per month. If the item sells, the company
will take 10 percent of the sale price.
EBay has been using a fee structure that included a listing
fee of 50 cents per item for full-price listings. The company
has been offering free listings only on auctioned items.
For larger-volume sellers, eBay will introduce new final
value fees ranging from 4 percent to 9 percent, depending on the
product category. Fees have varied, depending on the sale price
of the items.
"For most of our sellers the complexity of our fees were
keeping them from being on eBay and preventing them from having
full transparency into their profitability from selling on
eBay," said Michael Jones, vice president of merchant
"There will be some sellers who will pay a little bit more
on eBay, but most sellers will be impacted positively by this,"
EBay shares rose 1.5 percent to $50.85 on the Nasdaq. Amazon
was off nearly 1 percent to $255.75.