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***Important Information for eBay .co.uk Sellers***

20 July, 2006 | 07:10AM BST


Earlier this year, we announced changes to the way Search and Browse results display Shop Inventory Format (SIF) listings on eBay.co.uk. At the same time, we made some changes to the Shops fees structure. Bringing the millions of Shop listings offered by sellers into the main site’s Search was a bold move, and we expected it to boost sellers’ sales and profitability and be a welcome change greeted by buyers.

Since we launched the changes in February, we have been keeping a close eye on how it has affected the marketplace. We’ve monitored how it has affected sellers and your sales, as well as how it has affected buyers and their shopping experience. Over this time, we’ve also spoken to many buyers and sellers to understand how the changes have been received on an anecdotal level.

Although there is a huge spectrum of opinion from sellers of all kinds and differences across categories, it has become clear to us that the buyer experience has been impaired by the huge number of Shop listings that are made available to them when they Search or Browse. Many buyers have explained to us that they simply cannot find what they want to buy easily and quickly.

Changes to Shop Listings (SIF) Visibility
It’s vitally important – to your business and ours -- that we maintain a healthy balance between listing formats on the eBay marketplace. From the 2nd August 2006 we will be reducing the visibility of Shop Items in the main search results on eBay.co.uk. As it stands at the moment Shop items are displayed at the end of all Search and Browse results. After the change Shop Items will be still be displayed in results but only when the main site has returned only a small number of relevant items.

For more details, you can read our Information Page here.

Changes to Shop Fees
Aside from some category specific exceptions noted below, there will be no changes to non-Shop basic insertion fees, final value fees or Shop subscription fees. However, it is necessary to redress the balance between Shop items and ‘core’ listing formats. Auctions are the foundation of eBay: auctions and other core formats made eBay what it is today – and they’ll always be a vital part of eBay.co.uk.

To this end from 23:59:59 BST on 21st August 2006 we’ll be making the below changes to Shop Item fees.

New Shops Listings Insertion fees from 21st August 2006
Shops Listings Insertion Fees
Insertion price tranche 30 day listings 90 day listings Good 'Til Cancelled listings
£0.01 - £4.99 £0.03 £0.09 £0.03/ 30 days
£5.00 - £9.99 £0.05 £0.15 £0.05/ 30 days
£10.00 - £49.99 £0.07 £0.21 £0.07/ 30 days
£50.00 - £499.99 £0.09 £0.27 £0.09/30 days
Over £500 £0.11 £0.33 £0.11/30 days

Shops Listings Final Value Fees
Insertion price tranche 30 day listings 90 day listings Good 'Til Cancelled listings
Item not sold No Fee
£0.01 - £4.99 10% for the amount of the selling price up to £4.99
£5.00 - £9.99 10% of the initial £4.99 plus 8% of the remaining selling price balance
£10.00 - £49.99 10% of the initial £4.99 plus 8% of the initial £5.00 - £9.99 plus 6% of the remaining selling price balance
£50.00 - £499.99 10% of the initial £4.99 plus 8% of the initial £5.00 - £9.99 plus 6% of the initial £10.00 - £49.99 plus 4% of the remaining selling price balance
Over £500 10% of the initial £4.99 plus 8% of the initial £5.00 - £9.99 plus 6% of the initial £10.00 - £49.99 plus 4% of the initial £50.00 - £499.99 plus 2% of the remaining closing value balance

New Shops Listings Insertion fees from 21st August 2006
Gallery fees
Closing Price 30 day listings 90 day listings Good 'Til Cancelled listings
£0.01 - £4.99 £0.03 £0.03 £0.03/ 30 days
£5.00 - £9.99 £0.05 £0.05 £0.05/ 30 days
£10.00 - £49.99 £0.07 £0.07 £0.07/ 30 days
£50.00 - £499.99 £0.09 £0.09 £0.09/30 days
Over £500 £0.11 £0.11 £0.11/30 days

For more details, you can read our Information Page here.

Other Fee Amendments
We’re taking this opportunity to make some additional changes to other eBay fees.

Featured plus! listing fees from August 21st 2006
Auction and Buy It Now listing formats
Category name Single item Multiple items
Books, Comics and Magazines £3.95 £9.95
DVD, Film and TV £3.95 £9.95
Music £3.95 £9.95
Business Office & Industrial £19.95 £29.95
Home and Garden £19.95 £29.95
Photography £19.95 £29.95
Real Estate £19.95 £29.95
Tickets £19.95 £29.95
Vehicles £19.95 £29.95

Mobile Phones with contracts – fees from 21st August 2006
Listing format Insertion Fee single item Insertion Fee Multiple items Final Value Fee
Buy It Now £7.95 £19.95 0%
Auction £7.95 £19.95 0%
SIF not available

Thank you for your Business
We recognise that these changes will impact many of you and will mean that you’ll need to make changes to ensure that you can take advantage of these new circumstances. The changes we have announced today have not been entered into lightly; we have taken time and effort to ensure that we are making the right decisions to ensure the long term health and vibrancy of the eBay marketplace. We believe that these changes are vital to ensure that the thousands of sellers that rely on eBay for a living or a significant second income can continue to prosper.

We know that as a seller you have a choice of outlets through which to sell your products. We appreciate that you choose eBay.

Regards,
eBay International AG

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