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Associate Manager Buyer Analytics Group Interview



eBay reduces the commission from sellers. The Average Selling Price goes up. Why?

Tags:business case

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2 Answers


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


Commission for sellers means that the seller are more will to give discount to the buyers. Increase in ASP could be because people buy more expensive products because of the discount.

Anonymous on

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