News
Ebay seeks to end regional pricing
Ben Furfie Jun 23 2008, 12:39pm
Comments (4)
Says manufacturers must wake up to modern world instead of wanting return to 1950s
Ebay has lobbied the European Parliament over trading laws that it describes as 'last century' and that are preventing EU consumers from making further savings.
It blamed manufacturers who it claims are exploiting trading rules that prevent cross-border trading for example, to push up prices and enforce pricing blocks from that belong in the 1950s, not 2008.
Speaking to the BBC, eBay's head of EU liaison Paloma Castro said: "Entrenched manufacturers want to continue making money as they did in the 1950s, but the business models have to adapt for the new economy."
The online auction company has identified four bottlenecks it claims prevent consumers from making further savings; bottlenecks it says allow manufacturers to maintain pricing segmentation – pricing models for different regions – a practice much derided, but prolific in the gaming and entertainment markets
Castro believes that with the credit crunch hitting EU consumers' pockets even harder, she believes now is the time for MEPs to change the law, with the firm already securing the support of two parliamentary commissioners and four of the main political group in the parliament.
"Currently it is estimated that online shopping put 17 per cent of saving in the average household basket. Looking at these rules could make those savings even better," she added.
It wants to see an end to regional pricing and replace it with one global pricing scheme for goods. "With the weak dollar, loads of people are looking to buy goods online from the US, but, in most cases, you can't do it."
She also lambasted manufacturers who actively seek to shut down online distribution of their goods by selling to bricks and mortar retailers for less than they do to etailers. "Certain brands want to close down online distribution channels," she added.
However, she was realistic that breaking down the trade barriers that allow regional pricing may take a long time to break down, though she is hoping that the etailer can build up a coalition of online retailers to lobby the EU before the end of the year.
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Comments
“About time”
Posted by: Stefan Skinner - Jun 23, 1:52pm
This would certainly change some things for the better. We'vel lived in Rip Off Britain for too long.
“Re: About time”
Posted by: Darren Palmer - Jun 23, 2:33pm
Nice objectives and worthy cause but can't help thinking this is just additional marketing for the ebay brand rather than an attempt to make a difference and change regional market exploitation. Hope I'm being cynical but can't see someone like Ebay, who are themselves fairly market exploitative, fighting for pricing in an area which makes little or no difference to their profit margins.
“If it will make more money for eBay!”
Posted by: Jan - Jun 26, 7:51pm
eBay sellers check out http://www.AFTERTH...L.com
It is a must in eBay's new world order. If it makes eBay more money then it must be right! That is eBay's montra. They do not care about the consumer or the sellers, ony eBay!
“Re: If it will make more money for eBay!”
Posted by: Niamh - Jul 9, 2:23pm
I can buy Clinique products from US Ebay for almost half the price I can buy them here. The snag is that if I spend more than £18 in one transaction I become liable for import duties and VAT making the buy a little less atractive. If someone from the US wants to buy goods from the UK to import into the US they dont face such restrictive practices. There would be more money in it for eBay because if the rules were relaxed then I'm sure people would buy more thus raising eBays profits. Personally I dont care if I can save money on goods then its good for me the buyer good for the seller too.