Ebay goes for Pricing and Policy changes

When it comes to offering a tough fight to each other in the competitive business domain, Amazon has Ebay as its toughest competitor. Ebay has made a mark in the minds of the buyers and sellers and it is his much coveted reputation which has made it a favored online destination.

Ebay’s marketplace update

In the first marketplace update that eBay has come up with, is all about empowering the sellers. There is stiff competition in the online marketplace and in order to direct the stream of traffic to Ebay, it got to play its cards right. The marketplace needs to be more attractive, so that Ebay is able to provide more traffic and divert the loyalists who have the inclination to flock to Amazon.

 The Merchants gaining more Strength

The nature of competition in the online business domain often unnerves the sellers who want optimum level of exposure of their products. In an era where exposure is the key, it is multi-channel marketing and listing products in the best platforms is what is required. The merchants have ample reasons to incorporate the new changes that EBay has come up with.

“We believe the new pricing structure makes Ebay the most competitively priced commerce platform in the US today,” quips one of the reigning leaders. Michael Jones, the head of merchant development for Ebay has opined that “And we don’t compete with sellers. We are not a retailer, we don’t buy product and we don’t make products. We are solely here to help sellers succeed and compete on a global basis."

How it is working?

Since the mid week of April, the e-sellers will get their first 50 auction listings at zero cost, per month. They can also add the fixed-price “Buy It Now” as one of the effective sales tool without the need to shell out anything. EBay has been getting cosier with sellers by reducing the prices. The giant online marketplace used to charge five to 50 cents per listing when the sellers wanted to opt for ‘Buy It Now.” In the existing list of items, the sellers only need to offer the dough after they are done with the first 50 listings.

Restructuring the Commission

Ebay also opted for restructuring its final value fees. It has sobered down on the commissions it used to extract from e-shoppers. EBay will now put the shipping cost in the total sale value. In terms of the commission, it has not come up with any fixed policy. However, the commission rates have gone down lowering overall commissions by 1% to 2%, approximately. It varies from item to item.