Lycos to Launch Net Auction Service

Lycos, the No. 3 Internet search service, is introducing an online auction service as it seeks to tap the popularity of such sales to boost revenue from electronic commerce. The move places Lycos in competition with top online auctioneer EBay, as well as with rival Yahoo, which already runs its own auction service.

Lycos said in May it would purchase a stake in closely held online auctioneer FairMarket, which is providing technical services for the auctions. Lycos will charge sellers a percentage of the cost of any item sold through its site, although the service is free for buyers. The auctions will be run on Lycos’ Web site as well as on Tripod, a Lycos Web site that lets people set up free home pages.

The auction service will waive its fees for the first three months but then will charge sellers 5% of the cost of any item priced at $25 or less, 2.5% of the cost of an item between $25 and $1,000 and 1.25% for any item above $1,000.