Overstock is making hay while the sun shines–its auction site is capitalizing on eBay’s announcement last week that it will raise its listing fee for eBay and eBay Motors by reducing its own listing fees for one month, starting Feb. 18, the day eBay’s rate increase goes into effect.
Overstock says it will drop its listing fee for the month by 52%, to offset the fee increase at eBay, where a 10-day listing will jump to 40 cents per item from 20 cents and eBay Store subscription services to $15.95 per month from $9.95 per month. At eBay, Buy It Now fees will move from a flat rate structure to a graduated scale ranging from 5 cents to 25 cents per time based on the Buy It Now price set for the item.
Overstock Auctions, which had already advertised listing fees it says were 30% lower than eBay’s current fees, says the number of listings on Overstock Auctions has increased by 50% in the week since eBay’s announcement. “That’s a significant jump. Clearly there’s growing rancor among eBay’s community of sellers,” says Holly MacDonald-Korth, Overstock’s vice president of Auctions.
Overstock also will offer each person who visits or registers with Overstock.com Auctions on the day eBay’s new fee structure takes effect a free $10 credit toward Overstock.com auction listing fees.
Overstock Auctions launched in September. It’s seeking to build a marketplace by giving buyers and sellers an alternative to eBay, and it differentiates itself from eBay on a number of factors beyond a lower rate structure for listing fee. In December, MacDonald-Korth said its target goal is to have about 100,000 items on offer at any given time, a number still dwarfed by eBay’s larger offering.
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