Trade group hits out at Ebay price hikes

RECENT CHANGES in Ebay pricing have caused a trade association of 600 high volume sellers to express dismay at the move.

The Professional Ebay Sellers Alliance (PESA) said it represents over 600 vendors accounting for over $1 billion a year in Ebay sales.

The group said in a statement that for vendors operating on slim margins, the Ebay price hikes will badly affect their businesses.

The price rises include a 40% increase in the Gallery fee, a five fold rise in the Buy it Now feature, and a 52% increase in commision, said PESA.

It said the increases represented a breach of partnership between the vendors and Ebay. While the vendors could absorb the rise in fees by raising their own prices, that will impact buyers' choice, it said.

"The fee changes will boost Ebay revenues in the short term, however, the long term vibrancy of the Ebay marketplace is diminished," PESA said. µ