eBay announced new pricing Tuesday that gives sellers the opportunity to list up to 50 items per month for free, but the auction giant will now calculate its final value fees after the seller’s shipping cost is factored in.
Effective April 19, 2011, the new pricing builds on a series of free-listing promotions in 2010 that drove significant increases in both new listers and listings.
“As we look toward the future of commerce, eBay is positioning small sellers and larger merchants alike for growth, and connecting them with shoppers excited about their great deals and terrific service,” said Christopher Payne, senior vice president and head of eBay North America. “We are listening to our customers and continue to tailor pricing to ensure the success of our sellers, and make eBay more convenient, accessible and relevant to their customers.”
eBay is reducing Final Value Fee rates for Store and Fixed Price sellers, and will apply the Final Value Fee to the total amount of a sale – including shipping – to encourage sellers to give buyers more of what the company says they want: free and low-cost shipping. This new pricing structure – consistent with other marketplaces – rewards sellers who offer the types of shopping experiences buyers have said they expect when shopping online. The company also believes the move better aligns pricing with activities that contribute to sellers’ success.
However, it could cause some sellers to refuse to ship overseas because of the added shipping cost and those who offer items at a very low starting bid but try to make up for it by tacking on a little extra for shipping.
The updated Final Value Fee structure takes effect for non-store sellers on April 19 and for Store and Fixed Price sellers on July 6.
eBay’s new pricing eliminates the upfront cost for consumers to list auction items on eBay and aligns incentives for eBay sellers to offer free and low-cost shipping. The pricing changes expand on updates announced in January.
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