Auction sites shunned by online shoppers

The number of UK households using auction sites has dropped within the last six months, according to research by Point Topic.

In a series of user broadband surveys, Point Topic found that people who 'normally' buy products from auction sites such as eBay has dropped by four per cent to 54 per cent since June 2007.

When questioned on specific purchases, as opposed to 'normal' online behaviour - that is to say shoppers who bought an eBay or auction item in the last three months - the drop in auction site purchases was as much as nine per cent.

The percentage of people shopping online has remained static during the same period and stands at a relatively high 69 per cent, although the number of people who claim to spend nothing at all online from month to month has also risen to nearly 12 per cent.

Despite online sales of toys rising by three per cent to 14 per cent and entertainment and sports tickets going up by one per cent to 23 per cent since June last year, online sales of other consumer goods has not. The sale online of computers, software and consumer electronics have all fallen and will certainly come as a stark warning to other online retailers during a time of global economic insecurity

Pamela Varley, a research analyst at Point Topic said that it was advisable to remain cautious.

"It is easy to get carried along by the enthusiasm for a dynamic sales channel like the internet but it's important to take note of the limits of what is achievable.

"It appears that a ceiling has been reached under the current conditions and retailers will need to ensure their business models reflect this reality. Historically this hasn't always been the case," Varley said.

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