In an attempt to jump start its business and breathe some life into an otherwise flat revenue stream, auction website eBay has announced a reduction in listing fees. According to the company, the lower rates should increase the amount of auction submissions and allow it to buoy revenue to reverse generally disappointing economic performance.

New fee structure

The new fee structure at eBay is based around two main components - final-value fees and the image gallery. The company says it has reduced the former by 25 to 50 per cent to reward users for selling products and prevent people who are unable to sell items from being penalised.

Equally important, eBay has also decided to eliminate image gallery fees. Until now, many sellers had balked at listing items, but you can now include as many images as you like at no charge.

All the changes made to the eBay auction site will take effect on 20 February, so it may be wise to hold off on your auction listing until then.