Sellers will pay up to 22 per cent more
Sellers will pay up to 22 per cent more

EBay hike in fees angers traders

Professional eBay Sellers Alliance up in arms

Written by Robert Jaques

The Professional eBay Sellers Alliance (Pesa) has slammed the auction giant for its recent decision to increase the fees charged for goods sold on its site.

The trade association representing more than 600 of eBay's highest volume sellers, who collectively account for over $1bn in annual eBay sales, today expressed "dismay" at the recent hike in fees.

"For sellers who often operate on exceedingly low margins, the substantial increase in fees will dramatically affect their businesses," Pesa stated.

"Overall, our members are reporting that they will pay up to 22 per cent more to eBay than before the increase. That is unprecedented, and will have broad marketplace implications."

The changes to eBay's US charges include a 40 per cent increase in its 'Gallery' fee, up to a fivefold increase to use the 'Buy it Now' feature, and a 52 per cent increase in commissions charged on eBay 'Store' sales.

Pesa added that the history and spirit of the eBay marketplace is one of partnership between buyers, sellers and the auction house.

"The success of eBay has been driven by value opportunities provided by sellers to buyers on eBay," said the trade association.

"Sadly, the fee increases fly in the face of that partnership, reducing the value opportunities sellers can offer to buyers because eBay will be boosting its take of each transaction."

Pesa warned that sellers will be forced to try to compensate for the fee increases by raising prices, which would have a knock-on effect on the marketplace as buyers will not find as many attractive offers as in the past.

"The fee changes will boost eBay revenue in the short term, but the long-term vibrancy of the eBay marketplace is diminished," Pesa warned.

It added that its members would be interested in investing in a higher fee structure if those funds would result in "substantive investments to improve the marketplace".

"Our members believe that, unless eBay invests to improve the integrity of the marketplace, their best growth on eBay is behind them," the association concluded.

Tags:

reader comments

related articles

Online shopping

Online retailers have bumper Christmas

while consumers flock to eBay to ditch unwanted gifts 04 Jan 2005

 

Judge warns of online auction fraud

Bogus sale should serve as a 'serious warning' to online buyers 08 Dec 2004

Alibaba IPO sees shares soar

Investors flock to China's largest B2B portal 06 Nov 2007

EBay sellers to strike over fee hike

Users express outrage at changes to fee structures 01 Feb 2008

Ebay to ban negative feedback about buyers

Auction website tells sellers you've got to eliminate the negative and don't mess with Mr inbetween 06 Feb 2008

today's top stories

Analysis: Will IE8 cause more problems than it solves?

Microsoft's new browser may lead to compatibility issues and affect online advertising 29 Aug 2008

CIO morale plummets as crunch hits

Fewer opportunities and less responsibility depress IT managers 27 Aug 2008

The pIT stop Q&A: Should packaged software users adopt SOA?

Our expert panel answer readers' questions 29 Aug 2008

Computing podcast 28 August 2008

CIO job satisfaction plummets, and why schools' IT spending is set to top £1bn 28 Aug 2008

The definitive guide to collaboration

Five key technologies and five best practice tips to improve your collaborative IT 28 Aug 2008

Advertisement

Newsletter signup

Sign up for our range of FREE newsletters:

Existing User

Newsletter user login:

Jobs

Job of the week

Job alerts

Sign up here

Find your next job here

Advertisement

White papers

Search white papers

Top categories

VPN, Extranet and Intranet Solutions

WAN/ LAN Solutions

Network Security

Interoperability-Connectivity

Grid/ Utility Computing

Latest poll

Would you recruit a student with an IT degree?

Would you recruit a student with an IT degree?

As IT student numbers plummet - would you recruit an IT graduate?

Previous poll results

Latest audio and video articles

A stressed CIOAudio

Computing podcast 28 August 2008

CIO job satisfaction plummets, and why schools' IT spending is set to top £1bn 28 Aug 2008

Bryan Glick video whiteboardVideo

The definitive guide to collaboration

Five key technologies and five best practice tips to improve your collaborative IT 28 Aug 2008

Latest in-depth articles

Myron HrycykAnalysis

General management skills are now as important as technical ability

A selection of leading chief information officers talk about what they see as the most important aspects of the role 28 Aug 2008

Internet Explorer logoAnalysis

Analysis: Will IE8 cause more problems than it solves?

Microsoft's new browser may lead to compatibility issues and affect online advertising 29 Aug 2008

Primary Navigation