EBay: Amazon-ification Takes Hold
BUSINESSWEEK - Technology August 19, 2008, 10:45PM EST
The online auction giant, hoping to boost inventory and revive growth, will imitate Amazon and court users who sell at fixed prices
by Catherine Holahan
The Amazon effect is getting deeper at eBay. The e-commerce giant that built its business around online auctions is stepping up an overhaul aimed at getting more users to sell items at fixed costs. On Aug. 20, eBay (EBAY) will announce plans to slash the upfront fees it charges to list sale items by as much as 75%, while increasing its final sales commission.
The goal is to make it easier to list items for a set, “buy-it-now” price on eBay. That, in turn, would increase the inventory of items for sale and—eBay hopes—attract more buyers seeking the Web’s limitless selection and the convenience of one-click shopping. “We think that this is the biggest, most fundamental change we have made,” says Lorrie Norrington, president of eBay’s global marketplaces business.
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