LONDON - The Centre for Economic and Business Research (CEBR) has released a new report, which says that the average income of UK households is set to be boosted by over £3,000 thanks to the popularity of online auction sites such as eBay.
Buying and selling goods online is increasingly becoming a popular method of shopping in the UK with an estimated business of £4 billion taking place on eBay alone, the economic consultancy said. Percentage wise, this is 1.3 percent of total UK retail sales this year. Almost 50,000 Britons take part in this form of trading and the number is only going to increase.
"If people realize that they have sellable goods sitting in their cupboards, it ought to increase consumers' confidence just like any other unexpected boost to wealth - such as a building society demutualisation windfall," said Laura Phaff, a CEBR economist who contributed significantly towards the study. Web sites have contributed immensely in making the online retail market a success by providing a platform to advertise second-hand goods. This allows a consumer to maximize the selling price of everyday items which are no longer required by him/her, but could prove useful to someone else.
Mark Pragnell, managing director of CEBR acknowledged the role being played by the auction sites, "Auction sites are increasing competition, widening consumers' choice and helping keep down inflation - both online and on the High Street. "In the world of eBay-nomics, small niche traders can thrive with access to massive national - and often global - markets, while consumers are able to realize the value in the goods that they own but no longer need or want," he said.
Posted
on : Tue, 16 Aug 2005 07:05 GMT | General News
By : Pippa Fielding
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