Buy It Now™ Fixed Price Listing Fee to Drop More Than 70 Percent; Sellers’ Fees Will Be Based Mostly On Successful Sale Of Items

SAN JOSE, Calif. - In time for the holiday shopping season, eBay is dramatically lowering - by more than 70 percent - the cost to list an item in eBay’s Buy It Now™ fixed price format. Sellers will now enjoy a flat rate of 35 cents for a 30-day listing period, up from the previous seven-day standard. Sellers also can now list multiple quantities of the same item for a single 35 cent listing fee; previously, multiple quantities resulted in higher listing fees. This pricing change significantly reduces the upfront cost of listing fixed price items on eBay and bases fees primarily on the successful sale of items.

The change, which takes effect September 16, 2008, is the most competitive pricing eBay has ever offered sellers. Final value fees also have been rebalanced on a category-by-category basis. In most cases, the combined listing and final value fees paid by sellers will be lower, and during this holiday season eBay PowerSellers can benefit from an additional discount by offering buyers free shipping.

“We aim to be the most competitive marketplace online, and this new, incredibly low pricing helps us achieve that goal,” said Lorrie Norrington, president of eBay Marketplaces. “A 35 cent listing fee virtually eliminates the upfront cost for sellers to put more of their great inventory on eBay and creates more opportunity than ever for sellers to build successful businesses.”

Prior to this pricing change, sellers paid between 35 cents and four dollars per item listed per week. Under the new pricing plan, sellers will pay just 35 cents for a 30-day listing, regardless of listing price or quantity of identical items. The lower insertion fees and longer listing duration will create substantial savings for many eBay sellers. For example, using the Buy It Now fixed price format:

* A $200 digital camera that sells after being listed three times for up to 21 days would currently cost a seller $17.31 in total fees ($9.00 in insertion fees plus $8.31 in final value fees), with 52 percent paid upfront for the listing. Under the new pricing, the total cost would be only $11.10 (35¢ in insertion fees plus $10.75 in final value fees), a savings of 36 percent, with only 3 percent paid upfront for the listing.
* A $25 collectible item that sells after being listed three times for up to 21 days would currently cost a seller $5.19 in total fees ($3.00 in insertion fees plus $2.19 in final value fees), with 58 percent paid upfront for the listing. Under the new pricing, the total cost would be only $3.35 (35¢ in insertion fees plus $3.00 in final value fees), a savings of 35 percent, with only 10 percent paid upfront for the listing.
* A $50 clothing item that sells after being listed three times for up to 21 days would currently cost a seller $9.06 in total fees ($6.00 in insertion fees plus $3.06 in final value fees), with 66 percent paid upfront for the listing. Under the new pricing, the total cost would be only $6.35 (35¢ in insertion fees plus $6.00 in final value fees), a savings of 30 percent, with only 6 percent paid upfront for the listing.
* A $500 laptop that sells after being listed only once for up to seven days would currently cost a seller $22.81 in total fees ($4.00 in insertion fees plus $18.81 in final value fees), with 18 percent paid upfront for the listing. Under the new pricing, the total cost would be only $20.23 (35¢ in insertion fees plus $19.88 in final value fees), a savings of 11 percent, with only 2 percent paid upfront for the listing.

Over the course of a year, the low listing fee and rebalanced final value fees can result in substantial savings for sellers. For example:

* An average fixed price seller who previously spent $5,000 in fees per year on eBay would now spend only $4,450 - a savings of 11 percent, or over $500. The seller’s upfront fees would drop from 41 percent of total fees paid to only 6 percent.
* An average consumer electronics seller who previously spent $5,000 in fixed price fees per year on eBay would now spend only $4,013 - a savings of nearly 20 percent, or $987. The seller’s upfront fees would drop from 32 percent of total fees paid to only 5 percent.
* An average computer seller who previously spent $5,000 in fixed price fees per year on eBay would now spend only $3,239 - a savings of over 35 percent, or $1,761. The seller’s upfront fees would drop from 34 percent of total fees to only 7 percent.

Sellers can still choose to list items in eBay’s auction-style format, which, with a low start price, remains the most cost-effective way to offer many kinds of items. The already competitive pricing for auction-style listings remains unchanged. Auction-style listings will continue to be featured prominently in search, sorted primarily based on “time ending soonest” and appearing towards the top of search results as the listing comes to a close.

“We love auctions. Auction-style listings remain the ideal choice for sellers who are uncertain about the value of their item, have a scarce item in high demand, or are willing to start at a low price and let bidding determine the final value,” Norrington said. “With these changes, we’re making sure sellers have competitive opportunities in both formats-auction-style and fixed price.”

While the pricing changes take effect in September, other improvements to the buyer experience on eBay will occur in phases through November. Buyers shopping for a great deal on eBay can expect to find greater selection at better prices than ever before. Improvements to eBay’s product search will make it easier for buyers to find the best deal on the product that’s right for them. Buyers who complete their purchase with PayPal, the safer way to pay and be paid online, will enjoy buyer protection. PayPal will offer protection for the full purchase price and original shipping costs on eligible transactions paid with PayPal at no additional cost to the buyer.

Pricing changes and improvements to the buyer experience also will take effect on eBay’s Marketplaces in the United Kingdom and Germany during the same period.