EBay hike in fees angers traders

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.