EBay To Lower Auction Fees, Improve Searches

San Francisco, CA (AHN) - Online retail giant eBay will change prices it charges sellers, as well as improve the site's search capability allowing auction goers to more easily find items.

Speaking to analysts Wednesday, John Donahue, the chief of eBay marketplaces tapped to become CEO when Meg Whitman retires March 31, said he plans to "change our product, our customer approach and business model."

Although details are expected to follow, Donahue said eBay will drop the price it charges to list an item, but increase the fee it takes when items are sold. The move is aimed at attracting more sellers, but places more importance on eBay converting onlookers to buyers.

While eBay began strongly, some sellers have moved to Amazon and other rivals, complaining about fees. Wednesday, eBay reported fourth-quarter profit was $530 million, compared with $346 million during the same period the previous year. However, eBay expects to earn less than analysts expected for the first quarter of 2008.

Wednesday, CEO Meg Whitman said she would retired Mar. 31 after coming on board in 1998.