Ebay Fixating on Fixed Price Sales over Auction Model
Posted 08/21/08 at 11:24:28 AM by Paul Lilly
Between raising the fee scale to censoring sellers from leaving anything less than positive feedback, Ebay has found itself under an increasing amount of scrutiny this past year. The online auction site is also finding that e-tailers are starting to offer more competitive pricing, a move Ebay believes is responsible for driving potential customers away from its auction format as buyers look for instant gratification.
"Buying online has changed," said Scot Wingo, chief executive of the market research firm ChannelAdvisor. "Retail sites no longer make customers choose between convenience and price."
To win customers back and prevent others from leaving, Ebay will once again change its fee structure, this time to the advantage of sellers looking to unload goods at a set price. Starting in mid-September, sellers will pay just 35 cents to list a fixed price "Buy It Now" auction, representing a 70 percent reduction in upfront fees.
While the new pricing scale might not be met with a warm welcome by sellers who prefer the auction format, Ebay is quick to note that "sellers can still choose to list items in Ebay's auction-style-format, which, with a low start price, remains the most cost-effective way to offer many kids of items."
Do you agree with Ebay's decision?
sounds good to me
Submitted by thefloyd on Thu, 08/21/2008 - 12:54pm
Now a days on Ebay, it can be just plain hard to get a good deal thru an auction, especially for PC parts. Not to mention in order to win an auction one needs to have the time to be on ebay right when it is about to finish. Fixed price is simply easier...
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