I have knowledge of a NEW On-Line Auction site that will be Launching in about 3 months.From what I hear it will Change the On-Line Auction Market Completely. E-Bay owns 90% of the industry... for about 12 more weeks.
Keep on eye out for a BIG new Kid on the Block, and We're not Talking about Times Warners terrible attempt called Auction Universe.
For those that are conceding that Yahoo's free Auctions will hurt the Pay sites.. You could not be more incorrect. Yahoo Auction is a Breeding ground for Scam Artists. There is NO control over Users, Buyers, Sellers etc.. No validation of users information..NOTHING.. People feel more secure buying and selling on sites that offer security, and charge fees for sellers to be there. It tells the Buyers taht the sellers are Legitimate.
Ebay has the market, any new auctions have to play catch-up. This means big expenses in advertising for a long time. eBay has millions of registered users, and they are loyal. Thousands of the sellers have long positive feedback lists (500 or more comments), why would they switch to another auction site and start over? Their reputation is already built at eBay. The point is that eBay is easy to use, low on graphics (faster), has fair prices, and everyone that uses auctions already has them bookmarked. Even if a new super-duper auction comes on the scene in three months, eBay will have another 200,000 registered users by that time. Having a head-start is the name of the game on the internet. eBay has it, everyone else is way down the list. New auctions can not break eBay through advertising and offering free services, and they will never be as big. eBay is one of the few sites on the internet making a profit, go ahead and invest in Yahoo and Onsale, how are they going to pay dividends to shareholders by having free auctions? What is the benefit?
I would NEVER invest or Support a FREE auction Site. They Are Breeding grounds for Fraud and Scam artists. Yes, E-Bay has the market..for Now. You would be amazed at How Many of their so called "Loyal" users, are FED-UP with them. The time is ripe for a Worthwhile Competitor, problem is Nobody has been able to pull it off. Not the Little guys that have tried, and not even a Big Company Like Times Mirror, whose failed attempt at the Auction market with "Auction Universe", which is a total Bomb. It's only a matter of time before someone gets it rite, and beleive me when they do, the Game will Change.
There are THOUSANDS of E-Bay Users that will Run when the time is right. E-Bays Fees have gotten Ridiculous, and customer service is NON-Existant. Trust me when I tell you there are A LARGE LARGE number of their so called "LOYAL" users that are ready to Jump Ship, if given the Chance. We'll see what the next 3-4 months bring.
As far as Shorting E-bay, Those that don't get out now, will NEVER re-coop. I'd bet 1 million dollars on that, tomorrow.