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Technology Stocks : OnSale Inc.

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To: Miguel M. de la O who wrote (920)3/17/1998 7:12:00 PM
From: William Vu  Read Replies (2) of 4903
 
Whether you bid from ONSALE of any other auction, there is always
a risk in online business, because, as a rule, online auction
companies such as ONSALE or EBAY do not take titles of products
but work like brokers that bring buyers and sellers together,
and earn a percentage fee (from 1% to 5%, depending on price).
They clearly warn you in their webpages that they are NOT responsible
for the quality of products, shipments,etc. If you win, but no
product available, then they just say "sorry", and no any compensation to you for your time, etc. If you receive a defective product, you can negotiate with the seller for return, but not with ONSALE or EBAY.
Everything depends on honesty of the sellers, and, unfortunately,
not all of them are honest. You have practically no means of
effective complaining or sueing, and just have to admit it.
You have sometimes great bargains, but there is a risk and stress
associated with it. This fact, of course, keeps many people from
buying through online auctions. Some are repeated customers
in the sense that they resell in a local market. The point is that
since they are repeated buyers, the bargains they get will offset
the losses due to occasional bad deals.
But there is a great probability that these resellers will
eventually contact the sources of products, or, the other
way around, the sources will contact the resellers directly instead of going through the auctions -to avoid paying fees. ONSALE ,EBAY, and
the like just help them to find each other, to know each other, and
very likely that they will eventually deal directly. This is just
a plain common sense.
Online e-commerce has a great future, I have no doubt. But
this means "a litle bit for everybody", and there is absolutely
no absolute or relative monopoly. When people see that there is a benefit, they will jum in. ONSALE in several years will be
just one of thousands of online stores.
William
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