August 15, 2005

eBay adds hidden boost to retail sales

by brian_turner

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According to the Centre for Economic and Business Research (CEBR), selling goods on online auction websites such as eBay can increase the average UK household’s wealth by approximately Â£3,000. It is anticipated that over Â£4bn of trading will be carried out on eBay this year - the equivalent of 1.3% of total UK retail sales.

Auction sites have increased the value of second hand goods by providing a cost-free way of advertising and selling them. This has also helped consumer confidence in general according to Laura Phaff, one of the authors of the CEBR report.

The sites could provide a hidden boost for retail sales, as sales from the auction house are generally not included in official figures. They also provide a platform for small niche traders, giving them access to national and international markets and significantly increasing their opportunities to make a successful sale.

Mark Pragnell, managing director of CEBR said: “Auction sites are increasing competition, widening consumers’ choice and helping keep down inflation - both online and on the High Street”.

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