eBay comments on Royal Mail price hikes
Yesterday, Royal Mail hiked costs for business customers. Later in the month the cost of a first-class stamp will increase to 60p. As Tamebay has previously reported, Royal Mail costs will be rising acrosss the board.
eBay have sent us a comment on Royal Mail price increases. Here is the statement in full:
Angus McCarey, UK Retail Director for eBay, said:
“While we generally support Ofcom’s desire to give Royal Mail more commercial freedom and make the Universal Service Obligation more affordable, it is important that these new freedoms are used carefully.
Many of eBay’s 180,000 online SMEs are able to take advantage of discounted business rates from Royal Mail. But for those that can’t, these increases will represent an additional pressure on pricing. eBay sellers are a big part of the solution to Royal Mail’s financial problems. Royal Mail therefore cannot afford to take them for granted. If sellers are having to pay more, they will want to see better services in return. That means Royal Mail investing in its services to deliver cheaper tracking services, more convenient delivery options and a shorter queue at the Post Office.”
eBay are on the right track. Ecommerce SMEs are part of how Royal Mail can prosper in the future. Tamebay is sceptical that increased fees will do anything but drive eBay sellers elsewhere though. But yes, Royal Mail must improve its service as it increases the prices.
This is a surprisingly strong comment from eBay. Chris and I cannot recall a more strident view from eBay on Royal Mail in our eBay lifetimes. But it does it does raise a question.
If raised Royal Mail fees are bad for ecommerce, then surely increased eBay fees are detrimental too? It seems to me in the past few years, as a general trend, that eBay’s fees for insertion and also successful sales, have grown significantly. I couldn’t give an exact % increase because of the complex nature of eBay fees. But we all know they have increased across the board significantly since (say) 2006.
And so the question. eBay think that increased fees from Royal Mail should mean a better service.
We ask eBay: “How have your increased eBay fees improved the service to sellers in the past two years or so?”
I do hope our readers will help out too. If you sell on eBay, let us know your views: How has eBay’s service improved for you after various fee hikes? eBay has offered guidance to Royal Mail. But is eBay practicing what it preaches?