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Technology Stocks : eBay - Superb Internet Business Model

EBAY 82.47

+0.4%

Dec 5 9:30 AM EST

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To: Doug Fowler who wrote (836)	11/18/1998 9:14:00 PM
From: Kevin McKenzie	Read Replies (2) of 7772

Yahoo auction count is up to 73,052. Ebay's is almost 1 million Could we soon see a major challenge to eBay? I think Yahoo's (ie, Onsales) biggest problem is their horrible search engine. Go to Ebay and type a couple key words. you go straight to a list of open auctions sorted however you want. Do the same on OnSale, you get a list of sub-categories, you have to click on each sub-category, then you're presented with a list of items, some of which contain your search criteria and some that don't. I think Ebay's biggest threat is a non-publicly traded auction site collectit.net It is owned by Krause Publications, which publishes 40 or so collectible classifieds. Krause can (and does) advertise its auction site within all its publications (essentially free advertising). The site is brand new. It has big technical problems also (but not as bad as OnSale). But I think in a year or so they'll eat more significantly into Ebay's market than will Yahoo/OnSale. Still, for the foreseeable future, it's hard to imagine anyone eclipsing Ebay.

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