>The Internet Stock Blog » eBay, Inc. Q1 2006 Earnings Conference Call Transcript (EBAY)

>eBay removed eBay Store listings at the end of search results from the main site because:

1) Less revenue per listing. eBay seems to be focused on the raw number of listings, rather than successfully ended listings. The low fee of store listings ($0.02 to list for 30 days, plus $0.01 for gallery for 30 days) probably encouraged sellers to park their items at the eBay Store. Its better strategy for items that do not sell.

2) Too many results. It is possible there were lots of irrelevant results or items posted from mass database catalog that did not reflect the current market pricing. For example, you might typically find a widget for $30, but the eBay store had a listing for $300. Unrealistic pricing mucking up the search results. You have to give buyers a good set of results to work from without overwhelming them. Auction/fixed price listing based on fees people have to pay will strike a balance between those items that are “worthy” of listing on the main site.