AUGUST TRADE NEWS

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Online retail sector predicted to expand rapidly

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21st August 2008

eBay restructures fee scheme to make fixed-priced sales cheaper

Online auction site eBay has revealed that it is to reduce the fees it charges people to list fixed-price items.

The move, which will help sellers that opt for the 'buy it now' option rather than putting their goods up for auction, is designed to help attract major retailers to the site and help eBay compete with the likes of Amazon.

In total, fixed-price auctions account for around 43 per cent of all eBay sales at the moment.

From September 24th, the online auction house will also alter rules so that retailers only pay the site when an item has been sold. It has also decided to stop fees for listing pictures of products.

An eBay spokesperson explained to the Telegraph: "[The] improvements will remove barriers for sellers.

We're reducing the upfront risk to listing 'buy-it-now' items on eBay.co.uk, by making the fees increasingly success-based for our sellers and improving their prominence alongside auction on the site."

However, the Guardian reported that some smaller sellers believed the move was less beneficial for them and more helpful for larger companies.

One small eBay seller explained to the newspaper: "Any change to the site that benefits one seller automatically disadvantages others. The sellers who are disadvantaged will always shout the loudest."

 

 

(c) 2008 Adfero Ltd.


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