Yahoo! No More Auction Fees
Revenue from advertisers in its paid search placement service has been so good that Yahoo has ended auction fees on its US site.
Yahoo will still charge fees on auctions on its other sites, like its top site, Yahoo Japan. The change comes as Yahoo seeks to find more sellers willing to use its auction site instead of market leader eBay.
The new pricing model begins June 6. Yahoo had been planning the move for six months, according to an executive with the company. It was not in response to eBay’s purchase of comparison-shopping site Shopping.com.
Yahoo said it would generate revenue from its U.S. auctions by continuing to have paid search listings. Paid search ads are triggered by keywords related to their product or brand.
The previous pricing model had Yahoo charging a small fee for listing an item for auction, and a percentage of the final sales price. EBay charges similar fees for insertion of an item into the site for auction and a percentage of the final value, plus fees for additional services like Buy It Now or reserve auctions.
David Utter is a staff writer for WebProNews covering technology and business. Email him here.