Contact Us          Submit a News Story          News Archives          Home
   

Google
E-Commerce News

eBay to cancel its Live Auctions service

Apr. 16, 2008

Add to del.icio.us     Digg this story Digg this

Today, eBay has officially said it will cancel the part of its site that allows users to place bids on items up for sale at specific live auctions after Dec. 31, 2008.

Jim Ambach, eBay's vice president said "this announcement will represent a significant change for the small number of partners, buyers and sellers involved with Live Auctions, which is why we're giving eight months notice."

Ambach added "we've been in touch with each of our service provider partners, and between now and the end of 2008, we'll continue to work with our Live Auction partners and sellers to ensure a smooth and seamless termination of this aspect of our business."

However, eBay will still continue to offer auction-style listings, which constitute the majority of items on its website, Ambach pointed out.

The criteria for Live Auctions and eBay bidding widely differ from each other, and has been since its implementation more than four years ago. Live Auctions works like a regular real-time auction, in which registered eBay users can submit real-time or absentee offers and observe the proceedings online, and the auction closes when the last bid is made.

In the traditional eBay model, bidding takes place within a set 10-day window.

Additionally, the cancellation of Live Auctions won't have any material affect on eBay's business, Ambach said. It's a time of change at eBay, which changed its fee and feedback system in February and laid off 125 employees last month.

Not long after eBay's announcement, LiveAuctioneers.com, which partnered with the company on Live Auctions for more than five years, said it will launch its own online bidding platform for the sale of art, antiques and collectibles. The project is slated for mid-June 2008.

The change to the new format won't have an impact on LiveAuctioneers' ongoing operations either, nor will it affect any of its 2.5 million active buyers or the support it provides to 700 auction houses. It is anticipated that other auction houses will sign up on the LiveAuctioneers.com platform.

From a strict security standpoint, the change appears to be a sound move, Scott Cleland, president of Precursor said. "If you start talking about fraud on the outside, it looks like they're efficiently distancing themselves from things they don't control."

eBay is eliminating Live Auctions so it can focus on its top priorities of improving customer support and minimizing the risk of fraud, Ambach noted.

"They're simply doing the classic business strategy of focus, focus, focus. eBay is concluding that the net benefit from those auctions outside of its own market have more net risk than real net benefits," Ambach added.

After markets closed Wednesday, eBay reported quarterly sales of almost $2.2 billion, up 24 percent from 2007's comparable period. The company also offered an upbeat outlook for the balance of the year.

Add to del.icio.us     Digg this story Digg this

Source: eBay.

This article was featured on the Business 5.0 portal. Click here to visit the site.     This article was featured on Business 5.0.



Advertise on E-Commerce News

Advertise on E-Commerce News and increase your site's visibility while boosting your sales.

If you have a product or service that deals with the ecommerce or ebusiness field, advertising on E-Commerce News can bring you new sales leads and close new marketing channels. This news portal is read by over 25,000 people a week.

Businessmen and woman that either own an ecommerce website, an ebusiness franchise, a B2B commercial exchange or by people in all walks of life that need to keep abreast of this fast-changing field. For more information on the many advantages of advertising on our news portal or to request pricing information, please send us an email and a marketing representative will be glad to answer you promptly.

Contact | Submit News | News Archives | Home


Copyright E-Commerce News. All rights reserved.

 
Avantex offers professional Web hosting services at wholesale-only prices. Get the best Linux or Windows hosting package for your eCommerce website. Learn more by clicking here.