Posts filed under ‘Ebay’
On September 16, Ebay will cut fixed-price listing fees by 70% to lure more sellers to the site. As Ebay seems to be going into hand-to-hand combat with Amazon, this move comes as no big surprise — particularly amidst all the complaining that accompanied multiple price increases over the last few years.
With the new pricing structure sellers will be charged a flat rate of 35 cents to list an item for 30 instead of seven days. They will also be allowed to list multiple quantities of the same item for a one time listing fee of 35 cents. Listing fees in popular categories like movies, music, games and books will be lowered to 15 cents.
Prior to this, sellers paid between 35 cents and $4 to list an item for one week. The huge range is dependent on the item’s listing price. Commissions at the close of sale are also changing with most items like computers and electronics going down. However, books and DVD’s will go up.
Pricing for items sold in eBay stores (which are separate from the company’s core listings), will not be affected.
Today Ebay has over 430,000 ‘mom and pop’ stores that account for over 95% of the $60B plus transacted. Those are some big numbers to top!
According to information provided at the 2008 Amazon Seller Conference back in July 2008, there are 79 million active user accounts on Amazon. That’s a whole lot of buying going on. And, what continues to amaze me is that I’ve spoken with countless people who aren’t aware that they’re buying from individual merchants, not the ‘Amazon company’.
With over $14.9 in revenue in 2007, Amazon now has 1.4 million seller accounts. They’ve just surpassed Ebay that reportedly has 1.3 million. These numbers were reported at the conference and also confirmed in an article published by TheStreet.com, which states that worldwide active seller accounts were up 14% in 2008, as compared to 11 percent in 2007.
In an analyst note, Piper Jaffray analyst Gene Munster estimated that Amazon has sold $6 billion in goods by third parties in the last 12 months. That tally is still well behind eBay’s $62 billion worth of goods via third parties, but Amazon is poaching market share.