March 15, 2011
EBay Inc., owner of the world's largest e-commerce market, lowered fees for the second time in a year to attract more sellers to its main site and boost a three-year turnaround.
Users may list for free as many as 50 auction items a month on the site beginning in April, the San Jose, California-based company said today in an e-mailed statement. EBay also will charge a smaller commission on items sold, beginning in July.
The company is trying to attract more buyers and sellers, many of whom have fled to Amazon.com Inc. in recent years, according to Forrester Research Inc. EBay also is encouraging merchants to offer free shipping by taking a larger commission from businesses that charge for delivery. The move may help consumers even as it means higher fees for some sellers.
"We think these changes will really improve the marketplace for both buyers and sellers," Todd Lutwak, vice president of seller experience, said in an interview. "We're listening to our customers. We're trying to understand their needs."
As part of the new fee structure, EBay will charge a 10 percent commission in the apparel category on the first $50 of merchandise sold, down from 12 percent. Commissions vary by category. Sellers offering less than 50 auctions a month used to pay anywhere from zero to 20 cents a listing, depending on the initial asking price.
New Shopping Cart
The company also introduced a shopping cart to help consumers keep track of multiple items. Previously, consumers had to buy items individually in checkout carts provided by EBay and by third-party software developers such as Auctiva and ChannelAdvisor Corp. Those independent carts will be eliminated at the end of June.
EBay, whose shares have risen 9.4 percent this year, slipped 33 cents to $30.44 today in trading on the Nasdaq Stock Market.
Chief Executive Officer John Donahoe is two-thirds of the way through a three-year effort to reinvigorate growth after losing ground to Amazon and other e-commerce providers.
As EBay retools the site, it hasn't escaped the ire of some small merchants, who have said changes to seller rating systems and the site's search engine last year hurt their business. Today's changes were no exception, they said.
"It may 'encourage' offering free shipping, but will wind up costing the buyers more by sellers having to build in enough shipping cost," Melissa Arnold, who runs a store on EBay selling china, pottery and other collectables, said in an e- mail.
Still, the turnaround efforts have been largely positive, according to Colin Gillis, an analyst at BGC Partners LP. EBay reported record sales of $2.5 billion in the fourth quarter, helped by growing demand for its PayPal payment service.
Learn more about Search Engine Optimization, the most effective form of online advertising.
Search Engine Marketing is the fastest growing advertising medium in the world, projected to become 10x more powerful and influential than traditional media outlets such as: network television, cable television, local television, network radio, local radio, satellite radio, national newspapers, local newspapers, magazines, billboards, direct mail, telemarketing and more.
Discover the most powerful and effective form of advertising, Search Engine Optimization.
An aside for consideration are the segments of Search Engine Optimization. Clarification is required in terms of paid search marketing, sponsored search advertising, pay per click, email marketing (spam), and the foundation of strategic internet marketing: Organic Search Engine Optimization - Organic SEO in some circles also referred to as Natural Search Engine Optimization - Natural SEO.
Key Organic Search Engine Optimization Facts:
- Keyword search is the 2nd most popular online activity, rapidly approaching the popularity of email retrieval.
- 90% of all new website visitors are delivered by a major search engine and/or directory.
- 98% of all keyword search activity results are powered by the big 4 search engines: Google, Yahoo, MSN and AOL.
- Keyword search results on Google, Yahoo, MSN and AOL are all determined by a search engine spider and/or robot crawler.
- Recent internet marketing studies confirm that keyword searchers prefer the organic results at a 6 to 1 ratio vs. pay-per-click sponsored search advertising listings.
Is your corporate website being found early and often on the keywords and keyword phrases that best describe your products, services and industry?
Harness the power that our proven organic search engine optimization technologies can provide...
Contact the Peak Positions Organic SEO consulting specialists today.
Learn more about our client roster, one of the strongest in the SEO industry, and more importantly discover why our client-focused Organic Search Engine Optimization company maintains the highest client retention rate in the SEO industry.
"Our year over year order anniversary flowers revenues are climbing rapidly in a timid economy. If you are looking for an excellent SEO Company, we suggest Peak Positions" ...
SEO Case Study