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Technology Stocks : OnSale Inc. -- Ignore unavailable to you. Want to Upgrade?

To: Pauly who wrote (927)	3/18/1998 12:20:00 PM
From: William Vu	Read Replies (3) \| Respond to of 4903

I am delighted that you just registered on March 17 and addresses your first message to me. Thank you! > >And the number of sales, does it tell much? > > Yes, as long as the average price of a successful order stays >relatively constant or > rises. It was about $150 last quarter, and I have not seen >statistics that show it > shrinking. > Last quarter, 32% of bids turned into succesful sales. So on average >a customer buys > 1 product from ONSL for every 3 bids they make (i.e. 1 of every 3 >bids turns into a > "winning" bid). So customers are not making hundreds of bids >without buying anything. You are not working for ONSALE? It is a pity, because if you do work for ONSALE you could provide us with even more information ((o:. > >Remember, that ONSL earns just 1% on items valued $1000 or more. >> > Where does this come from? Last quarter's gross margins were >about 12%, not 1%. From: onsale.com here is an excerpt: "The ONSALE Exchange charges a comission (sic) on any completed sale. The rates per unit are: 4% of the first $25 2% of the next $975 (from $25.01 to $1000) 1% of anything over $1000 These fees are cumulative, which means that, for example, on a $50 item, you would be charged $4% of $25, and then $2% of the remaining $25." >>To compare ONSL with AOL is like, say, comparing apple with , hmm, with cabbage.> > No, I believe AOL and ONSL can be compared from the point of view >of the value in building up a loyal customer base. ONSL's customers >tend to be repeat purchasers. Of course apple and cabbage can also be compared from the point of view of providing you with nutrition (o: AOL customers pay monthly fee, so more customers mean directly more fees. ONSL customers may have left ONSL since 1996, and still be listed as customers. Is it true or false what I am saying? Do you need a proof? Finally, it amuses me that ONSALE brags about number of bids. It is like a soldier brags about the number of shots he fired in a battle. William