Y! Auctions sticks it to eBay by going fee free

June 9, 2005

I was browsing techbargains and what do I find but that Yahoo! Auctions is moving to an entirely free model for consumers.

Well, this certainly makes the game more interesting. I’m assuming that Y! is counting on increased traffic to drive ad revenue… and it sounds like a pretty logical idea to me. A contextual ad selling merchandise on an auction site where people are already looking to buy something seems like one of the highest yields possible.

I wonder what eBay’s response will be. Clearly, they have the most traffic now. But as Craig’s List has shown, people just can’t resist free 🙂

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No Responses Yet to “Y! Auctions sticks it to eBay by going fee free”

  1. Jeremy H Says:

    I think this is actually a bad idea. By making listings completely free, they open themselves up to auction spam. There is now no cost for placing an “auction” that is really an advertisement. It also opens up the possibility of sellers flooding the site with rediculously over-priced items. The end result could be a degradation in the quality of the service.

  2. J Says:

    My guess is that they’ll institute some fees, for the reasons stated by Jeremy H, above, after they build traffic. In the meantime it’ll be a good deal, and hopefully put price pressure on eBay.


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