As the Craig’s broker in the NBR story explains Trade Me is a mature business. There’s not much room for the kind of fast growth it has seen in the past and it faces pressure on margins.
Which is where the Radio New Zealand story comes in. The latest price change is about better margins. Sellers now have to pay a 7.9 percent fee. It quotes Lance Wiggs: “ I think they’ll probably gain $2 million to $5 million to even $10 million positive”.
Trade Me is still easier and cheaper than the obvious alternative. The standard eBay success fee is 10 percent.
While Trade Me is potentially vulnerable to a competitor, to date no-one seems to have come close to challenging what is, in effect, a monopoly on on-line auctions in New Zealand.