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Trade News Archive 2009
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26th June 2009
Big brands bully smaller retailers, says eBay
Big brand distributors often try to dictate the price of their product to small online retailers, according to eBay.
Research conducted by the online trading site found that 49 per cent of retailers had had suppliers attempt to stop the sale of their goods online.
A further 45 per cent of small online retailers had been told they must sell the items at a certain price.
The predicament for smaller retailers is the lack of financial clout to stand up to the larger organisations.
While eBay does not have a problem with brands choosing the sites on which their product is sold, it does take exception to the abuse of that distribution.
Mark Lewis, managing director of eBay UK, said: "We don't have an issue with selective distribution but we do have an issue with the abuse of it.
"These are small enterprises. They don't have the legal expertise or finances to fight [bigger] brands."
Further research is to be conducted in France, Germany and Italy to assess the reach of the problem.
(c) 2009
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