Yahoo Auctions Revise Policies, Fees

Got something worthless that you don't want? If you're tempted to list it on Yahoo Auctions to see if someone buys it, now that bit of e-commerce will cost you. On the other hand, Yahoo Auctions may be becoming a better place for shoppers (at least those who aren't looking for a Ku Klux Klan outfit).

As of January 10, Yahoo is charging for auction listings. The company hopes that this will result in better-quality items for sale. And Yahoo is banning the sale of items associated with hate groups.

The Cost of Doing Business

Unlike Web auction leader eBay, Yahoo's service has so far been free to the seller as well as the buyer. If you wanted to unload Aunt Agatha's false teeth for a profit, you could just fill in the online form and wait for the bids. But now, you'll have to fork over a small amount of cash--perhaps as little as 20 cents--before you can get money for the molars.

Yahoo expects charging will improve the quality of what's sold. People aren't likely to spend money if they don't think they'll get something for it in return, the digital auctioneer maintains. Gartner Group Research Director Whit Andrews agrees.

"If you don't create some perceived value, you run the risk of becoming a low-value flea market [filled with] stuff that people leave out on the rack at the used bookstore because the bookstore won't buy it," Andrews says.

Not that Yahoo objects to another source of income. As the dot-com world deals with financial disaster, many sites are reducing their free offerings. Although Yahoo denies it, it's hard not consider the Web's current advertising troubles played a role in this decision.

"If advertising had stuck as a strong force," Andrews points out, "Yahoo could have made money that way."

Still, Yahoo is keeping the rates more than competitively low. The highest possible listing price is only $2.25. And unlike eBay, Yahoo won't be taking a cut of the final selling price.

Bigotry Banned

Yahoo is following eBay's lead in another way: It's banning products connected with hate groups and with groups that promote violence--and not just from the auction site, but also its classifieds and retail sites. The flagship Yahoo index site is unaffected.

Banning content is always tricky, and Yahoo admits that there's a gray area here.

Yahoo will ban "items that are glorifying hate groups," including memorabilia, but not books or films, according to a Yahoo representative. In other words, you can't sell an old Nazi uniform, but copies of Mein Kampf are okay.

If you're selling a Nazi uniform or a 33-cent stamp, you probably won't be doing it on Yahoo Auctions. On the other hand, you may find it a better place for shopping.