eBay is perhaps the most competitive, efficient market in history. The massive quantity of buyers and sellers, and easy access to wholesalers through the internet result in intense competition and low prices.
What does this mean for the small auction seller? It is very hard to compete.
But not all auction sites are this competitive. I have personally had great success selling on the top New Zealand auction site Trademe.
The advantages of a smaller auction site are lower fees and less competition. The disadvantages are obviously less demand and the logistical difficulties.
Lets look into the difficulties:
Less demand: It’s easy to think that the reduced demand and reduced supply (competition) will offset each other, meaning a smaller auction site will not be more attractive than eBay. But auction theory states that you only need a couple of interested buyers to sell something for a fairly high price.
Logistical difficulties: These can be hard to get around. If the auction site is based in your country then you will be fine. But for other country’s you will have to partner with someone who lives there. Basically once you have found a partner, arrange payment and shipping for the goods to your partner, and write up the auction. Your partner will keep on top of listing, payments and shipping the individual goods and if all goes well, will give you your cut on a regular basis.
