Competition for customers between eBay (EBAY) and Amazon (AMZN) is heating up. In an attempt to win market share EBay Cuts Fixed-Price Fees More Than 70%, Maintains Forecast.



EBay Inc., the world's largest Internet auctioneer, lowered fees for listing fixed-cost items by more than 70 percent to attract additional sellers and compete with Amazon.com. EBay said the changes won't affect its annual earnings projection.



Sellers will pay 35 cents to list multiple quantities of the same item for 30 days, the San Jose, California-based company said today in a statement. Previously, sellers paid between 35 cents and $4 per item listed for seven days.



Chief Executive Officer John Donahoe's strategy of removing most upfront fees is designed to boost listings and grab market share from Amazon.com, the world's largest online retailer. EBay's sales growth in the second quarter slowed the most since 1998 as consumers, hurt by rising energy and food costs, reduced purchases. The new prices take effect Sept. 16.



"The news signals EBay's renewed focus on competing with Amazon.com and other e-tailers in fixed price," said Benjamin Schachter, a New York-based analyst with UBS Securities LLC. "While these changes will increase listings, impact to the demand side of the equation remains to be seen."



EBay also eliminated the use of check and money orders and shifted to electronic checkout solely through its PayPal service. Last month, Amazon.com introduced an electronic-payment system to compete with PayPal.

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