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eBay Offering Free Shipping Incentives

Posted on 3.21.2011

Good news and bad for eBay sellers this week.

Under a new pricing structure that begins on April 19, the first 50 auction listings per month will be free. The online marketplace also announced that sellers can add the fixed-price Buy It Now tool for free, which previously cost 5 to 25 cents to use.

That was the good news.

The potentially bad news for nearly three-quarters of eBay sellers was that the company reduced its commissions structure by 1 to 2 percent to provide incentives for free and low-cost shipping. The commission fees will now be based on a product’s final sale price plus the shipping costs.

That will reward sellers of higher-priced items that can withstand free and low-cost shipping, while those sellers of lower-priced items that have no free-shipping options will most likely experience severe fee increases.

Currently, 30 percent of products sold on eBay in the U.S. ship for free.

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