Online auction sites are a great way to buy and sell things online. Many of us find it a way to add to our income part-time, while others have made it a full-time occupation. But, what's in it for the auction site?
Well, besides the advertising revenue that is generated by a site with high traffic, there are generally listing fees and commissions. Do all of these 25 cent fees add up to a profit for the online auction site? Well, actually, not so far. eBay is the only major auction site that has earnings in the black with a modest .04 cents per share. But activity has increased on ALL of the major sites over the past year, and it's only a matter of time before well-managed auction sites start to show a healthy profit.
The fee structure is similar among all sites, except for Yahoo, which charges no listing fees and no completion fees. eBay charges a 25 cent listing fee for any item under $10, and Amazon.com charges 10 cents for all items. (Amazon says it will increase its fees in the future.)
Take a look at the table to see exactly how the fees are determined, including Featured Auction Fees.
About the author:
Ina Steiner is co-founder and Editor of EcommerceBytes and AuctionBytes.com and has been reporting on ecommerce since 1999. She's a widely cited authority on marketplace selling and is author of "Turn eBay Data Into Dollars" (McGraw-Hill 2006). Her blog was featured in the book, "Blogging Heroes" (Wiley 2008). Follow her on Twitter at @auctionbytes and send news tips to ina@ecommercebytes.com.
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