Ebay has announced that they are cutting their fees by 50% which will start as of Feb 20th. They also have cut out the picture fee as this should be included on ecommerce sites. Where they are picking it up is on the sale end as a commission. If the product sells for under $25.00 it will be 8.75% but will be less on higher priced products.

They will also use customer ratings of the process to determine the rank in the searches so someone who has many dissatisfied customers will be lower in the searches. This has come about as the market on ebay is flattening due to all the cost and sellers are pulling out. They only had a small 4% increase of the last year and are now needing to compete with companies such as Amazon who charges $0.00 to list a product and you pay the commissions when something is sold.Not sure how long ebay will be able to hold on with the shift in the seller market, but they are looking to make a complete platform change in hopes of not going under. This all came to a head last year when Chief Executive Meg Whitman announced she would retire at the end of March. That is when Donahoe, president of eBay Marketplaces decided he needed to aggressively change eBay’s product, customer approach and business model.