eBay - Superb Internet Business Model Message Board

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Technology Stocks : eBay - Superb Internet Business Model

EBAY 92.57

-1.4%

1:07 PM EST

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To: Doug Fowler who wrote (2401)	3/29/1999 2:00:00 PM
From: Randy Ellingson	Read Replies (1) of 7772

Doug- I think Amazon's opportunity in person-to-person auctions is much better than Yahoo's. The typical Amazon.com customer is visiting the site with the intention of buying something, whereas Yahoo's visitors are often just looking around. Yahoo never marketed their auctions as well as we can expect Amazon.com to do. I'm not concerned for eBay, but I do think Amazon.com can succeed in adding revenues and profits with this business strategy. I agree that Amazon.com will see some sales go to their auction site, but they may actually prefer that due to the higher margins of the p-p auction model. The buyer and seller do all the fulfillment, and Amazon simply takes their cut. Randy

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