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!
Ben Kepes is an analyst, an entrepreneur, a commentator and a business adviser. His business interests include a diverse range of industries from manufacturing to property to technology. As a technology commentator he has a broad presence both in the traditional media and extensively online. Ben covers the convergance of technology, mobile, ubiquity and agility, all enabled by the Cloud. His areas of interest extend to enterprise software, software integration, financial/accounting software, platforms and infrastructure as well as articulating technology simply for everyday users. More on Ben
I also think that Trademe should waive success fees for a $1 reserve auction.