>What does a bid means ? Just a click on a computer keyboard.>
No, a bid is an intent to buy by the customer. They will likely keep bidding until they generate a successful order (based on my own personal experience as a customer of ONSL).
>And the number of sales, does it tell much? >
Yes, as long as the average price of a successful order stays relatively constant or rises. It was about $150 last quarter, and I have not seen statistics that show it shrinking. So more sales means more revenue. ALso, more sales (and more bids) means greater traffic through the site, which is an asset in and of itself.
>Remember, that ONSL earns just 1% on items valued $1000 or more. >
Where does this come from? Last quarter's gross margins were about 12%, not 1%.
>A person can make hundreds bids and did not buy anything>
Last quarter, 32% of bids turned into succesful sales. So on average a customer buys 1 product from ONSL for every 3 bids they make (i.e. 1 of every 3 bids turns into a "winning" bid). So customers are not making hundreds of bids without buying anything.
>To compare ONSL with AOL is like, say, comparing apple with , hmm, with cabbage.>
No, I believe AOL and ONSL can be compared from the point of view of the value in building up a loyal customer base. ONSL's customers tend to be repeat purchasers. Advertisers will pay for all those eyeballs (as they do for access to AOL's 11 million members). ONSL has 500,000 pairs of eyeballs, and it's rising rapidly. |
