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Technology Stocks : eBay - Superb Internet Business Model
EBAY 85.21+0.7%Dec 26 9:30 AM EST
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To: Jenne who wrote (2641)4/14/1999 8:46:00 PM
From: Doug Fowler  Read Replies (2) of 7772
 
As was stated in the article, Amazon has done little to help bidders distinguish between sellers who are businesses and sellers who are individuals.

eBay has empowered the individual sellers greatly, giving them as much of an advantage as the bigger guys typically get.

The eBay rating system goes a VERY long way in helping determine who is legitimate and who isn't.

One thing eBay COULD do right now, if it so chose, would be to place a special marker beside a listing for anyone whose rating is 100 or higher (and with 1 or fewer negative feedbacks).

This would be a kind of "Seal of Approval", and let someone know before taking the time to look at an item whether it was from a legitimate seller.

I would certainly just as soon buy from someone with a nice healthy feedback rating as from a "company".

And let's not forget one of the biggest allures and drivers of online auctions: price. People expect to get great deals on eBay, and generally they do get great deals. A company simply has more overhead, and is likely to be striving for a higher price than a "little guy" who operates out of his home.

I doubt sincerely that eBay is going to be left behind in any important trends that develop in this space.

Let's not forget that with their recent secondary offering, they have more than $700M in cash. If someone starts making significant progress, eBay will likely buy them out.

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