Online auctions, Part 2: The eBay diaspora

Part 1 of this two-part series focuses on the way eBay's newest business strategies, which favour larger sellers and fixed-price sales, are altering the online auction marketplace. Part 2 takes a look at where many disenchanted smaller sellers and auctioneers are migrating in search of friendlier environments to sell their wares.

Online auction site eBay grew up on the receipts of smaller-scale sellers.

Now, as the company reaches out to larger, big-volume dealers, some of those original core customers are drifting away.

Some sellers have moved on to competitors such as Amazon.com, said Charles King, principal analyst with Pund-IT.

"I think a lot of the mom-and-pop retailers are probably looking to see if there are opportunities," King told the E-Commerce Times. "Amazon has been getting a pretty good reputation for certain kinds of products. I think it's rapidly evolving."

Some erstwhile eBay clients may now be looking to target specific consumers, King expects.

Craigslist, which currently is involved with eBay in a court case stemming from eBay's introduction of its Kijiji classified-advertising platform three years ago, has presented a formidable alternative to eBay, King said.

"I talked with one person recently who's a pretty active eBay retailer, and they switched all their efforts to the local Craigslist," King said. "What they love about Craigslist is that it's local buyers, it's all cash. There are no logistics problems; getting the products to the buyers sometimes can be complicated. I think it's interesting - the ongoing stresses and strains between Craigslist list and eBay."

Read the full article here.

Read Part 1: Online auctions: The eBay earthquake.