EBay to cut seller fees to take on Amazon.com

EBay to cut seller fees to take on Amazon.comGlobal online giant, EBay has said that it is planning to reduce its seller fees and also make them simpler for the users to understand.

Ebay might be looking compete better with giant online retailer Amazon. com. The company said that it will replace its complicated tiered pricing mechanism and will introduce simple flat-rate fees based on the types of products being sold on the site. The company has also indicated that it will no longer charge listing fees for most sellers on its site.

The announcement from Ebay comes soon after Amazon users criticised the retailer for raising fees and holding up payments. Amazon, which is world’s largest Internet retailer, is also being sued in a class-action lawsuit at District Court in Seattle for holding customer’s money for more than 90 days, which violates its own terms.

Amazon’s marketplace has been able to attract several sellers including many from Ebay in recent years. Ebay believes that this is an opportunity for the company to attract sellers on the site. The percentage of total products sold by third party merchants rose to 39 per cent from 30 percent in two years, during the fourth quarter.