SAN FRANCISCO (Reuters) - EBay Inc said on Tuesday it would stop charging upfront fees for some people who sell low-priced items and change other parts of its fee system in the United States to spur more transactions on its site.
Starting on March 30, the electronic commerce website will eliminate fees on items with an auction start price of 99 cents or less, allowing sellers to list 100 items a month. EBay would take 9 percent of the final price or $50, whichever is less.
For sellers who list items often, new “eBay Stores” tiered subscription rates offer insertion fees as low as 3 cents per listing for 30 days. That amounts to a 90 percent reduction over current rates, eBay said.
The company has rolled out similar changes in Europe, with Chief Executive John Donahoe citing the success of that system during eBay’s earnings conference call last week.
Buyers would get eBay’s protection program, which offers more customer support and money back in case of problems.
EBay has introduced many changes in the last year, including lower upfront listing fees, to lure more buyers and sellers to the site after a protracted slump in its main marketplaces division, which connects buyers with sellers through the auction and fixed-price e-commerce formats.
EBay shares were up 1.7 percent to $24.10 on the Nasdaq.
Reporting by Alexandria Sage. Editing by Robert MacMillan