06-09-2008, 12:04 PM
Quote:Sales at Amazon.com, the leader in online sales of fixed-price goods, rose 37 percent in the first quarter of 2008. At eBay, where auctions make up 58 percent of the site's sales, revenue rose 14 percent. "If I really want something, I'm not going to goof around [in auctions] for a small savings," says Dave Dribin, a 34-year-old Chicago resident who used to bid on eBay items, but now only buys retail.
Executives at eBay have gotten the message. Since taking the helm in March, eBay chief executive John Donahoe has made it clear that fixed-priced items are key to future growth. eBay's "Buy It Now" business, where shoppers can purchase items at a set price even when the merchandise is also listed in an auction, makes up 42 percent of all goods sold on eBay. It's growing at an annual 22 percent pace, the fastest among eBay's shopping businesses.
"As [Web] search has developed, you can get a great deal in a fixed-price format," Donahoe said in an April 16 interview after his first earnings call as eBay's top executive. "We are going to let our buyers choose."...
full article: http://ecommercetimes.com/story/Auctions...63271.html