| May 12, 2009 |
eBay to Give Sellers 5 Free Auction Listings per Month |
| By: Ina Steiner |
| Tue May 12 2009 15:22:33 |
eBay is giving sellers the opportunity to list five auction-style listings per month with zero listing fees if they use eBay's Sell Your Item form or Simple listing form. Under the new pricing, Final Value Fees will be 8.75% of the sales price or $20, whichever is lower. Any additional items sold during the same 30-day period will have the same Insertion Fees and Final Value Fees as they do currently. (Link to announcement.)
The new listing fees go into effect on June 16, 2009. Sellers who use an eBay tool or third-party listing tools will not receive the special pricing.
According to eBay's announcement, "We're continuing our efforts to lower the upfront costs of selling on eBay. The 5 listings with $0.00 Insertion Fees are especially helpful if you don't sell a high volume, but offer the kind of unique and hard-to-find inventory buyers expect to find on eBay."
eBay has been encouraging high-volume sellers and fixed-price formats, which make up about half of eBay's Gross Merchandise Volume. In the first quarter of 2009, Fixed Price format grew 12 percent, while Auction format listings declined 20 percent.
A CitiGroup analyst commented in March on eBay's move way from the auction format as it became less relevant than in the past, but said he believed eBay would likely benefit for some time from hosting a vibrant, core Auction marketplace. "The operating questions for eBay are: What is the right size for its Auction market? And how does eBay preserve this differentiating feature while still promoting Fixed Price sales?"
By limiting the free auctions to five per month and excluding the use of eBay and third-party tools, eBay is trying to attract unique items in the auction format without diverting multi-quantity, fixed-price listings.
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