Yahoo! to impose auction transaction fee
Published: 06 Nov 2001 15:41 GMT
Yahoo! is changing the way it charges for its auctions, introducing a transaction fee for the first time.
In a statement on Tuesday, Yahoo! executives said the change was made after consulting with the company's auction users. As part of the change, which will go into effect 20 November, the portal giant said it will also reduce its listing fees.
Yahoo! saw its listings plunge after it began charging listing fees for its auctions in January. Many sellers complained at the time that while they were willing to share in their success on Yahoo! by paying a transaction fee, the close rates on their auction did not justify the company's listing fees.
Similar to what eBay does, Yahoo! will charge sellers a tiered transaction fee depending on the closing price of the item. The company will charge 2 percent of the purchase price on items that sell for up to $25.
For items that sell up to $1,000, Yahoo! will charge sellers 2 percent on the first $25 and 1 percent on any amount over $25. Yahoo! will charge similar fees for items more than a $1,000, adding a 0.5 percent fee for any amount over the $1,000.
Meanwhile, Yahoo! is decreasing its listing fees. Currently, the company charges 20 cents to $1.50 per item depending on its starting price. Under the new policy, Yahoo's listing fees will range from 5 cents to 75 cents per item.
In both cases, Yahoo!'s fees are considerably lower than online auction leader eBay. EBay's listing fees range from 30 cents to $3.30 depending on the price of the item. And the company charges a closing value fee of up to 5 percent of the final price of an item.
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