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EBay to reduce some fees and vows to improve service
Associated Press
Published February 8, 2005
SAN FRANCISCO - Less than a month after announcing a price hike that enraged small business owners, eBay Inc. said it would reduce some fees and promised to improve customer service.
The online auction giant said in a Web posting it would credit $15.95 - the cost of a one-month subscription - to small business owners who operate "eBay Stores" in April. EBay also said it has reduced the minimum fee for inexpensive auction items from 30 cents to 25 cents.
Bill Cobb, who became president of eBay North America in December, said the company would provide more pricing details in upcoming weeks.
Although the company isn't backing off price hikes announced in mid January, the missive struck a conciliatory tone and might repair bruised relations with small business owners.
In mid January, eBay warned sellers in a terse e-mail that the monthly subscription fee for people who operate "Basic eBay Stores" would increase from $9.95 to $15.95, and the fee for a standard listing of 10 days would double to 40 cents.
The price hikes, which could dent profits for thousands of small business owners who hawk clothing, electronics and other low-margin commodities on eBay, are expected to start Feb. 18.
For the past three weeks, eBay sellers have peppered executives with angry e-mails, threatening to increase the prices that buyers pay, close their stores or defect to auctions hosted by Yahoo.com or plucky startups.
The price hike, combined with eBay's dominance in the auction and online payment sectors, prompted some members to ask whether the government or a fair-business consortium should regulate fee structures so small-scale entrepreneurs don't get gouged.
Cobb also said the company would improve customer support services in the United States and Canada.
Within the next 90 days, eBay will stop sending automated e-mail responses to buyers and sellers who send questions to customer service representatives.
Instead, Cobb promised, people will "hear from a human being who will try to help you with your problem or question right off the bat." The company will only use automated responses to acknowledge receipt of spam or policy violation reports.
Ebay also expanded the number of sellers who may call a telephone line for live help. Phone support is now only available to high-volume "PowerSellers," but starting April 1 it will be available to all eBay Stores owners.
[Last modified February 8, 2005, 00:21:16]
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