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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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Mark from London: "And it all used to be such fun" -- Too right! Another retail outlet? Oh goody! NOT. It's a failure of a move. I'm in the US and used to enjoy "ebaying." In the past year or so, we've been going back to brick-and-mortar to see quality before paying these regular retail prices.
Lina, New York, USA
Fraud is way to easy to commit on ebay and i have been effected by it. Getting your money back from paypal is a NIGHTMARE. I choose NOT to use Ebay anymore and go to other respectable retailers that actually give a hoot about their customers UNLIKE ebay.
David Sars, exeter, UK
If they try to take on Amazon then they will lose. Everytime people will choose Amazon becuase they have a great customer service behind them, Ebay won't be able to beat that and will just leave complaints up to the individual sellers, many of which are very unscrupulous and just peddle rubbish.
Warren Rushby, Southport, U.K.
I have noticed that many areas are now dominated by fixed price such as LHD cars. However when you track the company often the price is lower in the showroom. This asks one simple question - is this another mechanism to sell products at a higher price by making people think it is cheaper?
Phil
phil pickervance, Denton, UK
if i wanted to buy something at a fixed price i would buy from my local shops or any of the thousands of shops on the internet...
Ebay used to be a way of saving and making a bit of money..
now it's just a way of spending a lot of money...
Ebay...no way..
Chris, Swansea
chris joseph, swansea, South Wales
The whole point of E Bay for me is the AUCTION.
Why discourage it?
Now I will have to guess the correct price to pitch an item at, instead of letting all interested parties bid against one another. How is that an improvement for the seller?
Colin McLeod, Cork, Ireland
If Ebay don't stop counterfeit items being sold on their site, they can't hope to compete against Amazon. Gillette razors, Tiffany jewellery, DVDs & software are all items I've bought over Ebay which are clearly fake. Neither they, nor Paypal do anything about it once reported.
PB, London, UK
eBay used to be a bargain hunter's paradise. Not any more, and they are responding to the regular disappointment of both parties - buyers paying too much, sellers getting too little.
But there are opportunities in this sector - Raffle.it is gaining momentum and will soon unleash it's marketplace ..
Pascal, Haslemere, United Kingdom
I can't say that I will welcome the competition that this is likely to bring. Alternative sites such as Ebid however still have flaws in that because it costs nothing to list your product can become lost in an array of other peoples listings. Bring on a better alternative!
Tom , Cambridge,
Such a move will likely open avenues for competition from auction specific sites aimed at amateurs, possibly with different bidding systems (there is much to be said, for instance, for a sealed bid system).
eBay might serve one market, while other sites serving the market that eBay has occupied.
James E. Petts, Burnham, England
Ebay's changes have meant that a number of sellers are finding good alternative auction sites such as EBid. This means there is and will be far less unusual items to be found on Ebay. EBays fees combined with the Paypal chargebacks being has Ebay unprofitable for many hobby sellers.
Jennifer Bowtle, Northampton, England
And it all used to be such fun.
Mark, London,