To: kemble s. matter who wrote (142301 ) 9/18/1999 7:31:00 AM From: J. D. Main Read Replies (1) | Respond to of 176388
Pilgrims.....Here's the latest------->E-Commerce Cos. Pool Auction Sites Associated Press Online - September 18, 1999 01:00 By CLIFF EDWARDS AP Technology Writer SAN JOSE, Calif. (AP) - More than 100 top technology firms hope to end eBay Inc.'s dominance of the lucrative Internet auction industry by pooling their listings and bids. Analysts say quality, not market muscle, will decide who gets the upper hand. "While everybody is focusing on the auctions themselves, the real issue facing these companies in the future is ascertaining the credibility of the buyer and the seller," said Harry Wolhandler, an industry analyst with ActivMedia Research. "The successful auctioneer will be the one that will be able to assuage the doubts and concerns of both, literally delivering the goods." There will not be one singular site for all companies. Instead, Web sites run by the members of the new alliance, which includes Microsoft Corp., Dell Computer and Internet gateway services Lycos and Excite at Home, will share millions of auction listings. The combined customer reach of the FairMarketPlace alliance could top 50 million a month, dwarfing the 6 million who use industry pioneer eBay. EBay, however, would still have greater volume, with about 3.5 million individual items for sale, compared to 70,000 on FairMarketPlace sites. Even so, eBay's stock tumbled 7 percent following Friday's announcement, falling $10.75 a share to $141 in busy trading on the Nasdaq Stock Market. EBay employees questioned whether competitors will be able to duplicate the company's following. Yahoo! and Amazon.com, which are not part of the FairMarketPlace alliance, are rapidly expanding their new auction sites. But they have taken only a small fraction of eBay's daily sales transactions. "That's our hidden weapon: We have a very involved, very energetic user community," said eBay spokesman Kevin Pursglove. Other FairMarketPlace participants include CompUSA, online retailer Cyberian Outpost, Fashionmall.com, CBS Sportsline's sporting goods store, Viacom Inc.'s VH1 music network and ZDNet. FairMarket chief executive Scott Randall, a former Yahoo! executive, said the new venture could revolutionize the booming electronic auction industry, which is expected to top $53 billion in annual sales by 2002. J.D.