5/03/01

eBay Prices Are Slipping: Down 25% from a Year Ago, According to AuctionBytes.com

Kurt Peters , Executive Editor

May 3, 2001, Natick, Mass. - Sellers are making 25% less on eBay (NASDAQ: EBAY) than they were a year ago, according to AuctionBytes.com. A recently completed study shows that typical consumer collectibles are selling for 25% less than they were a year ago, with an increase in the number of items for sale.

"I`m not surprised at the results of our study," commented David Steiner, President of AuctionBytes.com. "Sellers have been telling us for some time that while the cost of selling on auction sites like eBay is increasing, they are realizing lower sales prices for their items. This study backs up the anecdotal evidence."

Some factors contributing to lower prices on eBay are supply and demand issues, increases in shipping costs that are passed on to buyers, increased media hype about online fraud, and greater competition from niche auction sites and fixed-price sites.

Over the past year, more people have become aware of the revenue potential of selling on eBay. At the same time, experienced eBay sellers have become better at identifying sought-after items that realize higher prices. "Sellers may flood the market with Swarovski Crystal, for example, as they become aware of its collecting appeal," Steiner said. While there are still avid collectors signing up on eBay every day, supply is more than keeping up with demand.

In addition, collectors are finding other auction sites and fixed-price sites. "I don`t see eBay in any great danger from this competition at this point, but it will have a greater impact in the future," Steiner stated. "Niche sites like PotteryAuction.com and JustBeads.com have been able to build sustainable communities. In addition, many sellers are creating storefronts to sell goods at fixed prices."

ABOUT THE STUDY

AuctionBytes.com studied a sample of "consumer collectibles" and compared Average Selling Price a year or more ago with prices in May 2001. The study confirms that there are a greater number items listed now with an ASP ranging from 9.5% to 33.7% lower than a year ago.

ABOUT AUCTIONBYTES

AuctionBytes.com publishes two free email newsletters for the online auction community. AuctionBytes-Update (ISSN: 1528-6703) shows readers how to become more efficient buying and selling online, with product reviews and advice. AuctionBytes Newsflash contains daily news about the online auction and collecting world.

http://www.auctionbytes.com

© Copyright 2001 Steiner Associates. All rights reserved.

Topics:

Auction, business finance, Customer to customer, Mobile software, Online auction business model

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