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Technology Stocks : OnSale Inc.
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To: j_b who wrote (2717)12/22/1998 4:41:00 PM
From: sam  Read Replies (2) of 4903
 
I'm not so sure that you're comparison is fair. EBAY never buys or even sees the merchandise it receives commissions on. ONSL's model is different. They buy the merchandise. And thus there margins are obviously much, much lower. Comparing EBAY and ONSL is really like the proverbial apples and oranges -- except, with the possible exception, of YHOO's ONSL person to person site -- which gets its revs from advertising (and not commissions) -- and thus has very high margins. Though I can understand why some are concerned that ONSL's sales figures seem high (compared to EBAY), but you must take those figures with the profit margin to get a full read on ONSL's profitability.
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