eBay Providing $0 Fee Auctions

eBay is adopting a new pricing structure and is providing auctions with a $0 insertion fee. Any individual seller can now pay no insertion fee if the bidding for an item starts under $1.00 and the item does not sell. There is a limit of 100 per month of these auctions that will not incur a listing fee. This is quite attractive to sellers in certain segments that can place auction items on the site for such a low starting fee.

Another great feature of the new pricing structure is the cap on insertion fees. For items that sell for over $25.00, there was no cap on the insertion fee rather it was determined as a percentage of the selling price. Now there is a cap on all auctions of $50.00. This will make more expensive items much for attractive to sell on the #1 online auction system.

The company is also taking steps to increase fixed price selling on their site which has been steadily growing over the years. Now the items that are being sold at a fixed price will be featured on many landing pages and listing fees can be as low as 3 cents an item when a seller list a larger quantity of merchandise.

This is new fee structure is similar to one it has used internationally. Larger merchants appear to be very excited about the pricing changes while some smaller merchants fear their fees will increase.