Fixed-price fee for large retailer upsets eBay’s smaller sellers

Jul 15 2008

EBay has struck a deal with web retailer Buy.com – allowing it to sell millions of books, DVDs, electronics and other items on the online auction website without paying the full complement of eBay fees, it has emerged.

The move is an attempt by eBay to lure consumers who are now showing more interest in fixed-price listings than online auctions.

The Buy.com deal has added over five million fixed-price listings to eBay.com since the beginning of 2008 for items ranging from Xbox 360 video game consoles to Weber grills, one report said.

The change, one of several under eBay’s new chief John Donahoe, has upset several smaller sellers.
Since eBay’s search listings favour larger sellers who can add perks like free shipping, which improve their feedback ratings, Buy.com’s presence has hurt many smaller sellers that compete in those product categories.

The deal will fill gaps in its eBay’s product offerings while making shopping more predictable, the online auction website told one US newspaper.

Details of eBay’s deal with Buy.com are being kept private, though it appears from the sheer number of Buy.com listings flooding the site that Buy.com is not paying listing fees, it said.

EBay was not immediately available for comment.