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EBay is taking a page out of the wireless phone competition playbook and simplifying its rate structure in an apparent bid to be more competitive with Amazon.com.
A big part of what’s different is the word “free.”
Currently, eBay charges sellers a listing, or insertion, fee per listing, per category, regardless of the quantity of items being sold. If the item sells, you’re charged a final value fee. The value fees are calculated based on the total amount of the sale and are charged per item. Fees for eBay Motors vehicle listings and eBay Real Estate listings are calculated differently.
Starting May 1, eBay is offering up to 2,500 free listings a month if you have an eBay Stores subscription. Subscriptions cost from $16 to $200 a month depending the plan, and final fees will range from between 4 percent and 9 percent. Without a subscription, starting April 16, sellers will get 50 free listings a month and pay one flat 10 percent fee when an item sells.
CNET.com notes the fees are designed to be more competitive with Amazon.com, which sells merchandise directly to consumers and also lets anyone – individuals, small businesses or larger retailers – sell almost anything on its platform. While eBay charges insertion fees, Amazon takes a small percentage of the sale price of items sold on its website, usually between 6 percent and 15 percent, according to CNET.
An eBay rep told CNET its new pricing structure “is part of eBay’s ongoing commitment to be the most competitively priced commerce platform in the U.S. today.”
What’s been your selling experience on eBay, and will the new push of “free” listings prompt you to do more business on the auction site?