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Strategies & Market Trends : Gorilla Game Investing in the eWorld
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To: Teflon who wrote (498)10/28/1999 11:28:00 AM
From: StockHawk  Read Replies (3) of 1817
 
>>Intuitively, my struggles with ebay have always centered on my belief that their true value lies in their brand, and nothing more. As more and more businesses start to come online and offer creative type auction services to the market... I see ebay's ability to keep a lock on their market dominance as an eroding process over the long term.<<

IMHO it will take some rather dramatic innovation to unseat eBay at the dominant force in the auction space. I think the lead they have is analogous to the advantage a mature gorilla enjoys - if you want to use an on-line auction you either go to eBay or you go somewhere else. If you go somewhere else it is almost inevitable that you find there are less buyers to sell your products to and there are much fewer items to choose from when you want to buy. Once you get frustrated with your pick and decide to try another auction site you will get the "I don't want to make the same mistake again" feeling and this time go to eBay.

I've done a very little test on several auction sites and on auction search sites that claim to catalog the merchandise of a variety of sites. Try it. Type in something you wish to search on. I used the word tapestry - which might bring up woven cloth or an old Carol King album. On eBay I usualy get over 1000 hits. On Amazon and others 25 is a big number. I think new auction sites will take market share from each other but the more that pop up, the better for eBay because it will help to keep challengers small.

I do not own eBay, but I'm keeping them on my watch list.

StockHawk
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