Thursday, June 23, 2005

Creating online stores - Threatening eBay's Dominance, More Online Sellers Go It Alone

From the article:
    In 2002, John Wieber started worrying about his business, which sold refurbished computers through Internet auctioneer eBay Inc. Although he was earning $1 million a year in revenue, profits had started to slip as competitors flocked to the site. EBay also raised its fees, further cutting margins, and fraud was becoming a problem.

    So Mr. Wieber revamped his Web site and began selling through other online companies, such as Inc. and Yahoo Inc. Last year, his sales neared $5 million, but his eBay revenue grew at a much slower pace, making up only a quarter of the total. It will likely fall still lower. Of the auction site, where he got his start, Mr. Wieber says: "Too many sellers, not enough buyers."
The article walks through several examples like that, showing how small one-person and two-person companies are making lots of money by operating their own retail web sites. It is definitely worth your time to read the article.


At 1:37 PM, Blogger Chuck Cheeze said...

Excellent article. I run a small business with 3 online stores and the cost to run them is trivial. I don't even need ads anymore, just some participation in forums and word of mouth has gotten us tot he point where we will have over $300K in sales this year...enough for my wife to stay home with our baby on the way. Now I need to figure out how to 3x that so I can stay home too :)


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