KEY POINTS:
Going, going, gone? Furious fans have accused eBay, the website that brought auctions to the internet, of betrayal.
They are upset by a company decision to lurch away from the website's original format and instead allow major retailers to list thousands of products at fixed prices.
The trend, they warn, marks the beginning of the end for the online auction - leaving eBay looking less like a car-boot sale and more like a shopping mall.
"Auctions in some categories are already pretty much dead," said Chris Dawson, an eBay seller from Thatcham, Berkshire, in England, who runs a blog about the site.
"Not many people bid for rechargeable batteries, Gillette razor blades, toothbrushes or even mobile phone handsets or DVDs - the kind of commodity items you pick up in a supermarket. EBay started out for the collectors' market but it's been overtaken by the business market."
Randy Smythe, a former eBay seller who now runs an e-commerce blog, added: "I believe eBay's drive for growth has killed the auction format. They are trying to compete with Amazon and the rest of e-commerce by giving you everything in the same search. Buy it Now and Fixed Price added growth at first, but they've killed the golden goose."
The changes have led some small sellers to accuse eBay of betrayal. Growth of the site's worldwide active user base slowed to a relatively modest 1 per cent in the past year. Smythe added: "Sellers have decided they're not going to eBay any longer. I've seen a lot saying that they're going back to the things they did before eBay - the flea markets, the trade shows. It means those rare items aren't on eBay any more."
In the 13 years since it was first set up, eBay has become famous. But as it pursues more users, its owners have struck lucrative deals with a string of major firms. Retailers such as Argos, Littlewoods and Orange now offer thousands of items on eBay at fixed prices without the hassle of bidding.
These compete alongside items offered by independent small sellers in auctions which can take days. Of the two models, buyers are increasingly showing a preference for fixed price, with its promise of a reputable brand and instant delivery.
Fixed price sales on eBay have grown by 60 per cent over the past six years, eating away at the auction side of the business. They now comprise 43 per cent of the value of all goods sold on the site, up from 39 per cent a year ago. Analysts say it is only a matter of time before auctions are the minority.
The shift has enraged eBay's fans. There was fury in America after eBay signed a partnership with Buy.com, that allows the web retailer to sell millions of books, DVDs, electronics and other items on eBay without paying the full listing fees.
It is one of several changes made by eBay's new chief executive, John Donahoe. The company said: "Today fixed price accounts for over 40 per cent of all our sales. We'll continue to innovate to bring parity to selling in fixed price alongside auctions and choice for buyers to shop whichever way they want."
- OBSERVER
TIFFANY TO APPEAL RULING ON SITE'S POLICING
Tiffany & Co has challenged a federal ruling that largely absolved eBay of policing its auction site for counterfeit items, saying the judge was wrong to leave the primary burden to the jewellery maker.
The appeal with the 2nd US Circuit Court of Appeals in New York extends a case that Tiffany filed against eBay in 2004 arguing that most items listed for sale on eBay as genuine Tiffany products were fakes.
Last month, US District Judge Richard J. Sullivan in New York ruled that trademark holders like the jewellery maker, rather than auction platforms like eBay, are responsible for policing their brands online.
In an interview, Tiffany lawyer James Swire said the judge "got several important legal issues wrong".
Swire contends, for instance, that trademark law doesn't put the responsibility on Tiffany for policing its own trademark.
"The judge's entire analysis of what is Tiffany's responsibility with respect to the site versus eBay's starts from an incorrect basis," he said.
Tiffany also believes that eBay should not need that much specific information about the sale of fakes on its sites and merchants who are selling fakes in order to take action against it, Swire said.
In his ruling, Sullivan said eBay could not be held liable for trademark infringement "based solely on their generalised knowledge that trademark infringement might be occurring on their websites". EBay has removed listings when Tiffany notified it of suspected counterfeit goods, but it has refused to go further and pre-emptively take down suspicious listings before any such notification. Sullivan said eBay had no obligation to do so.
EBay has said it spends tens of millions each year to combat counterfeiting. It suspends and blocks users who have been found selling or are suspected of selling fake goods on the site.
It also runs a programme that lets companies review listings and inform eBay of those they believe are for fake goods; eBay removes ones that participants flag. Tiffany has taken part in this programme.
- AP
