EBay to emphasize fixed prices over auctions, report says
20.08.2008 19:00
Shopping
- Source: cbc.ca
 Auction site eBay ticked off sellers earlier this year with changes to its fee structure.(Paul Sakuma/Associated Press)Auction site eBay is set to change its fee structure in order to emphasize fixed-price sales and move away from bidding wars, according to a report. Starting in mid-September, eBay will charge sellers only 35 cents US to list an item for 30 days at a fixed price, according to the New York Times. Previous charges ran up to $4 US and allowed listings for only a week. The website is expected to make the announcement on Wednesday, as part of an effort to compete better with other online retail powerhouses such as Amazon.com. The company is moving away from auctions in response to consumer preference, the newspaper said, as shoppers are opting for fixed prices instead. Last month, eBay said gross merchandise volume on its website grew only eight per cent, a big decline from the double-digit growth of previous quarters. The company posted a big increase in revenue, but most of that came from growth in its advertising, classified and PayPal businesses. Expansion in its auction business, which makes up about 57 per cent of revenue, is slowing. Growth in the site's number of active users also has slowed to a snail's pace, climbing only 1.4 per cent in the company's most recent quarter. "Clearly there’s a strong buyer preference for fixed price," Lorrie Norrington, president of eBay Marketplace, told the New York Times. The company is looking to make the switch in time to compete against Amazon and other big online retailers over the busy winter holiday shopping season, the newspaper reported. The auction site has ticked off a number of sellers through recent changes to its fee structure. In January, eBay lowered the price of selling higher-end items but raised the commission it takes on items sold for less than $1,000, which angered many sellers. Smaller merchants accused the site of creating an uneven playing field that is geared toward bigger vendors. RelatedInternal LinksEBay sellers begin weeklong boycottEBay alters fee structure again after seller uproarEBay shrinks listing fees to attract more sellersConsumer HeadlinesDeath reported in Ont. from listeriosis, as meat recall expandedHealth Canada confirmed Wednesday that one person in Ontario has died as a result of listeriosis.Ford Escape, Mitsubishi Outlander top SUV crash testsFour small sport utility vehicles received top scores in crash tests to be released Wednesday by the insurance industry, a sign of improvement compared with SUVs built earlier in the decade.Parents give more reliable assessment of children's activity than kids: StatsCanParents seem to give a more accurate assessment of their children's activity levels than the children themselves, according to a Statistics Canada study released Wednesday.EBay to emphasize fixed prices over auctions, report saysAuction site eBay is set to change its fee structure in order to emphasize fixed-price sales and move away from bidding wars, according to a report.London, Ont., to ban bottled water on city premises despite beverage industry protestsCity councillors in London, Ont., have voted to ban the sale of bottled water on city premises despite protests from the beverage industry. Consumer Life FeaturesIN DEPTHEnvironmentHealth Canada to evaluate pigments, solventsTECHNOLOGY'Make' it yourselfMagazine foments DIY revolutionSAFETYRecalls and AdvisoriesYOUR VOICEFound your calling?Tell us why your job is a dream job!BLOGFood BytesThe colossal appetite of PhelpsBLOGComm-OdditiesBillionaire breaks real-estate record with $793M bidPeople who read this also read …
| 
Add comment