EBay to slash listing fees, revamp commissions

EBay Inc. said Tuesday that it would cut by as much as 50% the fees it charges sellers to list their goods online, in an effort to boost listings and keep pace with other e-commerce sites.

To balance the fee cut, the company plans to increase its commission on items that do sell -- a method EBay says sellers prefer because it lowers their risk if items do not sell.

EBay will also increase fees on some items, including auctioned goods selling for less than $25.

EBay’s fee for those transactions will rise 67% to 8.75% of the final sale price.

Incoming Chief Executive John Donahoe told a gathering of 200 of EBay’s top North American sellers in Washington that a majority of sellers would see their fees go down, and that the new fee structure would be driven by the success of sellers.

“EBay is at a crossroads,” Donahoe said. “To maintain our leadership position in e-commerce, we can no longer make incremental changes. We need to redo our playbook and we need to do it fast.”

As part of the changes, photo fees also will disappear. The fees were considered a deterrent to sellers posting pictures of their goods.

The new fee structure goes into effect Feb. 20 in the U.S.