EBay confirmed today sweeping changes to the way it runs the business paving the way to replace its auction model with more fixed-price sales to take on Amazon.

“I’d say this is the most fundamental change we’ve made, ever, to the marketplace,” Lorrie Norrington, president of eBay marketplace operations in the US, said. “It’s a huge shift from where we’ve been.”

The group will streamline the sales process to make it easier for retailers to list products in bulk at fixed prices and reduce fees for fixed-price sellers.

EBay said the majority of sellers would see their overall fees fall. It could mean that fixed-price sales could make up the majority of its sales within two years.

Sellers will no longer have to pay to upload photos of their goods, and fixed-price listings will be given greater prominence on the site. The changes come into effect in the UK on September 24.

A revamped search engine will also make it easier for buyers to find fixed-price items.

The online auction site, founded in 1995 in San Jose, California, has been moving steadily away from its auction-system roots as entrepreneurs offer items at set prices.

The “Buy It Now” fixed price system of eBay accounts for 43 per cent of global sales, a rise of 60 per cent over the last six years.

Clare Gilmartin, director of marketplaces for eBay in the UK, said: “Buyers increasingly want the convenience of shopping for great value, often new, items at a fixed price. This is fuelling a big growth in the number of large and small sellers using eBay in this way.

“Today’s improvements will remove barriers for sellers so they can make the most of this opportunity and offer even more goods for sale on eBay."

Britain is eBay's third biggest market after the US and Germany. eBay.co.uk lists more than 14 million items and has a unique audience of more than 15 million, according to Nielson.

The site estimates that 178,000 people in the UK earn a primary or secondary living from running a business on the site.

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