6. Why is eBay raising some fees and lowering others?
We believe that careful management of prices ensures the long-term health of the marketplace. On February 22, 2006, we will raise the Final Value fee for the middle tranche, but will lower or remove fees entirely in other areas. These changes are part of the ongoing process of managing the marketplace's growth and development and also help ensure that we continue to deliver top notch, high quality products such as Message Center, Want-it-Now and Best Offer.
7. How are Insertion fees changing?
We are decreasing the Insertion fee for one segment of listings which start between US$0.01 - US$0.99 to US$0.20 and listings which start between C$$0.01 - C$0.99 to C$0.25. Currently listings which start between US$0.01 - US$0.99 are charged a US$0.25 and listings which start between C$$0.01 - C$0.99 are charged a C$0.30 insertion fee. No other Insertion fees are changing.
8. How are Final Value fees changing?
The middle tier of Final Value fees will change. Listings that are listed in US$ which close at US$25.01-US$1,000.00 will be assessed 5.25% of the initial US$25.00 ($1.31), plus 3.00% of the remaining closing value balance (US$25.01 to US$1,000.00). This is changing from 2.75% of the remaining closing value balance (US$25.01 to US$1,000.00).
