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Trouble at eBay

June 9, 2008
by Josh Catone
Blogger, ReadWriteWeb

Josh Catone

“I think [fixed prices] will disappear online, simply because it is possible–cheap and easy–to vary prices online.” That was MIT Media Lab’s Patti Maes in 1999, at a time when eBay’s business was booming and auctions were seen as the future of ecommerce. Flash forward 9 years, and BusinessWeek is today calling online auctions a dying breed, Nick Carr is wondering if auctions were a fad. Indeed, the fixed price (”Buy it Now” only) format is beginning to dominate eBay, and the company has taken recent steps push fixed price even harder. But the death knell of the online auction format is not eBay’s biggest problem–no, that would be the small exodus of sellers from the site.

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