In order to compete with Amazon, eBay has just announced a new fee structure which aims to grow its seller market.
This is the first time in the site’s history that it will allow free listings for non-store and store platforms. They have also lowered their fees structure and made the fee rules easier to understand.
Their old system charged non-stores $.50 per listing and then charged them for “tranches” based on the price of the item they were selling.
Tranches did not include a cap, meaning sellers had to pay higher amounts of fees for items that cost more.
But under this new system, sellers only pay a flat rate of 10 percent, and it is also capped at $250. Non-store sellers can sell up to 50 items and not pay insertion fees if they list them as auction-only or buy-in-now. Other non-store sellers are charged $.30 for each listing after they reach their limit of 50 items.
Sellers will receive a discount on their yearly subscription fees and will also be allowed to list up to 2,500 items each month with no insertion fees.
They are also allowing free listings for buy it now or auction types based on store level. The earlier system did not allow any free listings for store members.
A chart of percentages based on item type and Plus discounts has also been released so the company does not have to rely on tranches for final valuations.
And to make their system appear competitive with Amazon’s, they have released a new chart comparing their own fee structure against their competitor’s.
In Q4 2012, their marketplace business made a record $2 billion in revenue and their active user growth increased after they updated their mobile platform. By lowering seller pricing and removing listing fees, they are attempting to keep up with their growth.