Ebay slashes listing fees to boost revenues

Ebay has substantially lowered its listing fees in order to encourage its customers to list goods and services online; at the same time, Ebay has announced that will raise the commission successful sellers will have to pay.

The biggest increase will hit those with items costing less than $25 (about £13) who will see the transaction free rise 67 percent to nearly 9 percent.

Ebay is also making a big push to get more businesses to join Ebay; although joining Ebay is essentially free, they will have to fork extra for add-ons like Ebay shops, which Ebay is counting on to generate more revenues.

The Auction giant has seen stagnation in the number of people who have been using Ebay over the years; the company is also facing an increase in competition from the likes of Amazon, Play.com and even Google's Froggle.

The changes come as Meg Whitman, Ebay's CEO for the last decade, has announced that she would be stepping down by March.

Bill Cobb, President of eBay North America, has also announced a number of minor changes to the way Ebay handles its sellers, notably the ones most likely to cause problem.

This ranges from having funds delayed to the removal of a buyer, not just de-score, negative and neutral feedback when a buyer doesn't respond to the Unpaid Item process.

Ebay has not said whether it will deploy the changes overseas anytime soon.