NEW YORK (TheStreet) -- Online auction site
plans on Monday to make a series of changes to its core marketplaces business, according to reports.
The changes are designed to help large vendors sell new goods in greater volumes, the
Wall Street Journal
reports. The company will tweak its search algorithm to favor new products, and allow sellers to include more and bigger photos in their listings for free, among other changes, said two people familiar with eBay's plans.
The company also will limit communications between buyers and sellers, a step designed to ease the burden for sellers of large volumes, according to the
The changes will be implemented later this year, people familiar with the plans said, the
Second-quarter revenue from the marketplaces division, which includes eBay, Shopping.com, StubHub, and other e-commerce sites, fell 14% from a year earlier. The company blamed this on the stronger dollar and challenging macroeconomic conditions, similar to the 18% decline the division experienced in the prior quarter.
The marketplaces unit takes in more than half the company's $8.5 billion in annual revenue, the
The company's marketplaces business is transforming to focus more on fixed-price items rather than auctions, the
reports. The company is looking to become a clearing house for large volumes of out-of-season and surplus goods, rather than a flea market for the curious.
To facilitate this shift, eBay has reduced fees for large-volume sellers and actively promotes them, the
eBay also owns the PayPal online payment business and Internet phone service Skype.
--Reported by Joseph Woelfel in New York