posted on February 28, 2001 12:26:11 PM
I don't understand the business plan of independent sites.
With Amazon, YAHOO and MSN I think I understand their model. Add another component (auctions) to their existing array of products and it needs to have only modest success. The total expenses of attracting customers and operating the business are shared among a number of different income sources.
But independent sites have to carry their entire expense load from auction generated revenues(fee, advertising, etc.)
Their only potential profit seems to rest on becoming large enough that they are purchased by some company that wants to add them as a component to a larger existing business. The purchase of Half.com by eBay comes to mind (I realize they are fix priced and not auction in format).
I ask this because I'm interested in having channels into the marketplace in addition to using eBay.
Beyond listing on a site I'm willing to contribute to the development of the overall business.
The efforts expended by many of the original sellers on eBay is a model for this "community" involvement. Helping each other, working with newcomers, contributing to site development and promoting the site to the public are only some of the ways sellers have been involved.
Not of interest to everybody and I fully understand. But I've both enjoyed and benefited from these type of activities online and in RL and would like to continue participation.
I caught, what I consider was, the tail-end of this effort on eBay and had modest involvement with Amazon and YAHOO communities. I admired but did not participate in the efforts at Golds.
Now, like many others, I'm looking for the next site. And I'm asking myself "Why bother?". "Build something and they will come" seems to have changed into "Build something and they will sell or destroy it".
I'm begining to think my additional efforts beyond selling should not be site specific and might better be used in areas like OAUA or exploring Bearshare, web rings and co-ops.
Back to my original question. If the only future that any of these sites have is being sold to a much larger corporation then I should take that into consideration when deciding on my involvement.
This is business, I understand and accept the primary motivation is profit, and there are no guarantees.
With eBay, Amazon and YAHOO there was, at least, the potential for creation of a stable marketplace where management might balance their short term gains against long term goals.
I don't think any of these three have come near doing a good job with auctions in finding a balance between their own needs the long term interests of their users.
I have not "walked in their shoes" and I'm not rich or powerful so my opinion may not be creditable. I do believe the present status of Amazon and YAHOO auctions plus the attitude of many long time sellers at eBay speaks clearly to this conclusion.
Do the independent sites offer any options that has long term promise for sellers other than "Come help us build this so that we can sell it"?
I appreciate free or low cost listings as an option to make additional sales of duplicate inventory. And I will support almost anything that expands the VOTE (venues other than eBay).
I just don't want to confuse a "one night stand" with something that has the potential for a long term committed relationship.
