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

To: Chucky who wrote (1573)	11/9/1998 6:52:00 PM
From: j_b	Read Replies (1) \| Respond to of 4903

<<I think it has to do with carrying rapidly depreciating inventory>> Do you really think that lack of risk justify the ridiculous price to sales multiple that EBAY gets? Remember, EBAY is now facing competition from Yahoo. Yahoo will offer the same service without the listing fee. It seems to me that EBAY has far more risk than does ONSL, at least as far as the possibility of disappointing the analysts. <<I believe the buyer has time to evaluate the merchandise; therefore, it is not to the seller's advantage to misrepresent their product since they will be responsible for the shipping if it wasn't acceptable. >> EBAY offers a third-party escrow service, but you have to pay an extra fee to use it. Without that service, it's buyer beware. There is no cooling off period, no time to evaluate the merchandise. ONSL stands behind their sales - EBAY specifically disclaims any responsibility for truth in advertising.

To: Chucky who wrote (1573)	11/9/1998 9:06:00 PM
From: CoffeePot	Read Replies (1) \| Respond to of 4903

ONSL also derives a portion of it's revenues from agent sales, where it acts as a middle man between manufacturer and buyer,, I think this represents approx 8% of sales. From what I understand the company prefers to be able to control what it buys by purchasing directly from the manufacturer/retailer as opposed to acting solely as a agent,, possibly because margins are higher this way. Regardless I don't see companies like EBAY producing the kind of revenues ONSl already has achieved,, ONSl will probably do more business last Q (57mm up from 24mm) than EBAY will do all year......where EBAY might have a margin advantage ONSl will easily make up for it in volume.....I just don't think too many consumers will find the idea of buying someone else's used equipment that appealing........a refurbished product with a manufacturers warranty is a totally different matter. IMO