eBay Moving Away From Auctions
eBay is tinkering with the very core of its business model. The company is planning to start focusing more on its fixed-price sales as opposed to its auction-oriented sales. The shift is expected to be announced sometime today, The New York Times says.
The change, of course, positions the site right in line with straight-forward Web retailers ranging from Amazon to Barnes and Noble or Borders. And it’s no surprise: eBay’s auction sales have been underperforming compared to the fixed-price alternative, The Times reports, meaning the auction boom of eBay’s early days may be reaching its end.
The specific changes will include lower upfront fees to encourage sellers to put their stuff online for a fixed price. Such a sale will only cost $0.35 for a month-long listing as of next month — a huge drop, almost 70 percent, from the current fee.