EBay plans to deemphasize online-auction model

SAN FRANCISCO - Acknowledging that most online shoppers cannot be bothered with auctions, eBay plans to announce changes to its fee structure today that emphasize fixed prices over bidding. The move is intended to help eBay compete more effectively with Amazon.com and other big online retailers.

The announcement, timed for the holidays, is just one of the changes eBay has made in the last few months aimed at reducing its dependence on its auction business, which is growing more slowly than fixed-price sales. It provides yet more evidence that consumers are losing interest in auctions now that online shopping sites have become more affordable and easier to use.

"Buying online has changed," said Scot Wingo, chief executive of the market research firm ChannelAdvisor. "Retail sites no longer make customers choose between convenience and price."

Lower upfront fees will enable sellers to offer a bigger selection, helping eBay better compete with fixed-price retailers, Wingo said. "The current system puts eBay at a disadvantage."

EBay also said it would no longer allow most customers to pay by check or cash, a change aimed at curbing fraud.