To: J. C. Dithers who wrote (5694 ) 9/30/1999 11:54:00 PM From: Tom Markowski Read Replies (2) | Respond to of 7772
I don't think so. Like he said, EBAY filed an S3 today 9/30/99 with the SEC. Here is one paragraph from that filing. Our market is intensely competitive The market for person-to-person trading over the Internet is new, rapidly evolving and intensely competitive, and we expect competition to intensify in the future. Barriers to entry are relatively low, and current and new competitors can launch new sites at a relatively low cost using commercially available software. We currently or potentially compete with a number of other companies. Our direct competitors include various online person-to-person auction services, including Yahoo! Auctions, Amazon.com, the Fairmarket Auction Network, Auction Universe and a number of other small services, including those that serve specialty or regional markets such as CityAuction. We currently believe that more than 500 companies are using an auction format for consumer- to-consumer or business-to-consumer sales. In mid-September, Fairmarket, a provider of auction software and services, announced that it had assembled an auction network including Microsoft's MSN, Excite@Home, Dell Computer, ZD Net, Lycos and more than 100 others. Listings from all of these companies would be aggregated and available at each member's site. We also compete indirectly with business-to-consumer online auction services such as Onsale, First Auction, Surplus Auction and uBid. Traditional auction companies such as Sotheby's are offering or have announced plans to create Internet auction sites. We potentially face competition from a number of large online communities and services that have expertise in developing online commerce and in facilitating online person-to-person interaction. Other large companies with strong brand recognition and experience in online commerce, such as Cendant Corporation, QVC, USA Network and large newspaper or media companies, also may seek to compete in the online auction market. . The principal competitive factors in our market include the following: . volume of transactions and selection of goods; . community cohesion and interaction; . system reliability; . customer service; . reliability of delivery and payment by users; . brand recognition; . website convenience and accessibility; . level of service fees; and . quality of search tools. Current and potential competitors have longer company operating histories, larger customer bases and greater brand recognition in other business and Internet markets than we do. Some of these competitors also have ignificantly greater financial, marketing, technical and other resources. Other online trading services may be acquired by, receive investments from or enter into other commercial relationships with larger, well established and well financed companies. As a result, some of our competitors with other revenue sources may be able to devote more resources to marketing and promotional campaigns, adopt more aggressive pricing policies and devote substantially more resources to website and systems development than we are able to. Increased competition may result in reduced operating margins, loss of market share and diminished value of our brand. Some of our competitors have offered services for free and others may do this as well. We may be unable to compete successfully against current and future ompetitors.