eBay cuts charges to attract more fixed-price sales

Online auction giant eBay has announced a cut in the cost of listing products to sell online, from 24th September 2008.

The costs of listing fixed price goods for sale will be cut dramatically. The charges for upfront listings will be reduced, with additional fees only applicable when a product has actually been sold. eBay expects that the majority of sellers will see their overall fees come down as a result.

According to company figures, "buy it now" sales now account for 43% of the company's total sales, suggesting that eBay is evolving into more of a sales "marketplace" than simply an auction site.

The company expects fixed-price sales to become the main part of its business model within 2 years - perhaps a sign that eBay intends to take on more traditional online retailers such as Amazon.

In addition to the reduction in fixed-price initial listing fees, such listings will also be made more prominent on the site, and merchants will no longer have to pay a fee for uploading photos of their products.

A new search engine will also make it easier for customers to access fixed-price goods.

If you use eBay UK for your small business, you can read the full price change details here.