eBay - Superb Internet Business Model Message Board

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Technology Stocks : eBay - Superb Internet Business Model

EBAY 90.36

-0.1%

10:51 AM EST

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To: zurdo who wrote (7089)	11/18/2002 7:06:26 PM
From: Bill Jackson	of 7772

zurdo, EBay is being hollowed out by the drop in final value fees, even as they increase their listing fees. The drop in the final sales price due to sniping, and hence the final value fee is down 40% from last year. Is this due to the dot com bust? New listings have grown and the listing fee has gone up, so this has offset the price drop, but as the market matures thay will have to stop the snipers from stealing deals from the inexperienced majority of people. An experience bidder loads his best proxy and lets it fight for him. New and inexperienced bidders watch the auction and bump it up a dollar here and there to stay ahead of the competition. This does not work with snipers who come in at the last 2-3 seconds with a high proxy and that eats all the lower proxies and wipes out the newbies little by little approach. Bill

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