I’ve always said that EBay could do even more business if they ditched listing fees and derived most of their revenue from add-ons and success fees.
In New Zealand, the largest online auction business, TradeMe, accounts for over a third of total web traffic here! This on the back of zero listing fees.
News just in that Ebay will cut its listing fees by around 50% and make the lost revenue up by increasing success fees. They should have done it earlier!
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I also think that Trademe should waive success fees for a $1 reserve auction.