Ebay Alternatives

When eBay seems a little too pricey or you don't seem to be getting the results you hoped for, it is important to consider alternatives to eBay. Learn about some eBay alternatives we have found, and how they can positively or negatively effect your business.

eBay Alternatives - Alternatives to Ebay

When eBay increased it’s hosting and transaction fees by more than 50 percent last year, many merchants and auction participants started to look at other eBay alternatives to auction their goods.

To many, this panic was a knee-jerk reaction that did not make sense because eBay is the ultimate marketplace for auctioned goods. The site attracts much more visitors and prospective buyers than some alternatives to eBay.

Some online retailers downgraded their status on eBay to pay lower monthly fees, whereas others decided to give other Web sites a try. After the hikes in fees, the number of eBay’s U.S. small business subscribers dropped to 158,000 from 161,000 in the final quarter of 2004.

EBay, which stated that the hikes were necessary to help control sales quality on the site, is now having to compete with eBay alternatives such as Amazon.com and Yahoo!, as well as lesser-known sites such as Livedeal.com, Diversetrade.com and Underbid.com. EBay has utilized a strong marketing campaign, including a series of TV ads that tells the consumer that “It” is available at its site.

The competition to attract small businesses or individuals who like to use online auctions is in full swing.

Yahoo! is an eBay alternative. Yahoo! has a base store offering at $39.95 a month, which is higher than eBay’s entry-level fee of $15.95, but Yahoo! charges only a 1.5 percent commission on sales compared to eBay’s 8 percent.

At Amazon.com, the company’s ProMerchants plan charges online sellers $39.99 for a storefront, plus a commission fee starting at 6 percent for computer equipment and 20 percent – yes, 20 percent – for gourmet food items.

Livedeal.com is another eBay alternative. Livedeal.com does not charge anything for a storefront or to list items for sale. The Web site, however, charges a 10 percent commission fee on all sales.

Many merchants are using more than one host. Some use eBay and Yahoo!, for example. These merchants generally auction off inexpensive goods on eBay to avoid the higher transaction fees.

Moreover, some merchants have abandoned eBay in favor of operating their own Web sites. Costs for the sites range from as little as $50 per month for a basic site to thousands of dollars for something more elaborate.

Bargain hunters have other alternatives than the Web sites already listed. Goodwill is taking part in auction craze by producing an online auction site at www.shopgoodwill.com. The merchandise volume is not as large as those at eBay and other sites, so it’s easy for users to browse for items.

At SwapThing, com, users can swap items and services online. Listing an item and proposing a swap are free, but both users are charged $1 for each successful swap and $10 for swapping services. The site also allows non-profit companies to post a list of items and services they need donated.

The auction platform also extends to real estate. Rbuy.com provides an avenue for real estate agents to sell property. The open auction allows users to view the bids.

Alternatives to eBay also exist at auctionbytes.com, theauctionboard.com and www.powersellersunite.com.

Other alternatives to eBay include a free exchange of goods on Freecycle.org. It is a free e-mail based Internet community where members give away unwanted goods rather than throwing them away.

Before using one of these alternatives to eBay, merchants must ask themselves if it is worth the attempt. Yes, eBay’s services are more costly, but its marketplace is unmatched. The site receives much more Web traffic than any competitor.

Imagine owning a store in Beverly Hills’ Hollywood and Vine and opting to move because of the high rental fees to a less-expensive, more secluded area. Does it make good business sense?

Thank you to Javier Moralas for this eBay Alternatives article

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