eBay Slashes 'Buy It Now' Fees For SellerseBay Slashes 'Buy It Now' Fees For Sellers

eBay has cut its listing fees for fixed-price items by up to 91%.

The online auction Web site announced the reduction Wednesday, saying it is decreasing listing costs for those offering a "Buy It Now" option.

Sellers can now pay a flat rate of 35 cents to list an item for a month. The fee covers any quantity of identical items. For instance, if a bookseller has several copies of one title, the seller can list all copies for one 35-cent fee.

In the past, eBay has charged between 35 cents and $4 for each item and listed the items for just one week.

The change represents eBay's growing emphasis on fixed-price sales over pure auctions. eBay said it expects the change in seller fees to increase inventory, attract more buyers, and ultimately boost sales.

Auctions drove 57% of eBay's revenue in the last quarter but growth in that area has slowed. Still, the company's net revenue grew by a healthy 20% to $2.2 billion in the second quarter, year over year.

eBay said that overall the new system will reduce sellers' initial costs. The company, however, has no plans to abandon its hallmark auction format.

eBay is facing growing competition in the E-commerce market. Amazon focuses on fixed-price sales for new and used items but does not charge listing fees. Google's shopping feature lists items from multiple sellers and offers users a chance to rate merchants.

By mid-October, eBay plans to phase out all payment methods other than electronic payments by credit card or through PayPal, which will afford buyer protection for the full value of purchases and shipping costs with no additional fees.