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eBay Inc. Associate Manager Buyer Analytics Group Interview Question

I interviewed in San Jose, CA and was asked:
"eBay reduces the commission from sellers. The Average Selling Price goes up. Why?"
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Part of a Associate Manager Buyer Analytics Group Interview Review - one of 326 eBay Inc. Interview Reviews

Answers & Comments

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I guess because sellers can spend more time.

Let's consider reducing commission in an auction - if a customer is supposed to pay $1 for 7 days instead of $2 for 7 days, she is more likely to spend more time i.e. 14days instead of just 7 days. And because she has more time available for auction, she would set minimum price to a higher value than before.
- Anonymous on Feb 1, 2013

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