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Technology Stocks : OnSale Inc.

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To: Doug Fowler who wrote (1539)	9/7/1998 2:15:00 PM
From: Mo Chips	Read Replies (2) of 4903

<<I am bullish on eBay, as I think it has one of the very best models on the Internet.>> I think your analysis is missing one critical factor. You make no mention of the perception of trustability, security, and reliability. The customer takes a lot more risk with a purchase at eBay than at Onsale. I think as new demographics come to the internet and eCommerce companies, that this will become a more important consideration. Early adopters (which Onsale and eBay have done very well with) are more risk taking as a lot. When the masses come to market, they will want more comfort with the business that they patronize. They say the fastest growing demographic on the internet is the middle class, middle age woman. I think that they will demand a level of trust from their stores. eBay is a flawed model in that there is a wide open possibility that you can get ripped off. Even if this is not a common problem, if a few stories get out about people who got ripped off it will be enough to prevent the expansion of the market beyond what eBay currently serves. Onsale has a better chance a building and maintaining their control over the customer satisfaction. Mo

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