With rising competition in the Chinese online auction sector, eBay Eachnet has announced that it will make a large adjustment to its charging policy, starting May 1.

The transaction procedure fee for all goods will be reduced by 20-60%. At the same time, the online product display fee will be cancelled and the monthly store rent decreased from CNY50 to CNY35.

eBay Eachnet says it is lowering the transaction fees to promote market circulation and to attract more goods suppliers to its website.

However these price reductions will likely place more pressure on its two major competitors, Taobao.com and 1pai.com, who are running free services.