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Ask HN: Why is eBay the only player in its market?
Like many, I have some stuff to sell. But I have a strong bias against eBay -- mainly ethical, but I also consider their services overpriced. I will not deal with PayPal. Period. There don't appear to be any other options. So why is eBay not just dominant, but the only player in town?
- anonymouslambda 16y agoAuction markets require critical mass, and markets with critical are difficult to displace. If you wanted to build an eBay competitor, how would you get around that problem? It's tough.
- auxbuss 16y agoSo perhaps build critical mass via the backdoor? Build trust via some other means then segue into the target domain. No need for immediate displacement, just wholesome competition.
- noodle 16y agocritical mass is a good way of describing it, but it doesn't quite cover the nuances. you have to build a good site that has comparable features that lures both the sellers and the buyers at the same time. if sellers don't like your features, buyers have nothing to buy. if buyers don't like your product, sellers aren't making money. you have to make something that is so just straight up better in all ways that it brings everyone over en masse and in a hurry.
- auxbuss 16y agoAs a seller, I am turned off to the point of exclusion. I'd rather landfill my goods than go through the market process (i.e. ebay) and me'be get some cash. And I'm lucky enough not to be desperate. I don't think I need a complete replacement of all functions to be engaged to sell. I just need the essentials. I'm a seller. Is it really necessary to be better in "all areas" to beat the incumbent?
- noodle 16y agothere are other auction sites online. why aren't you using them, then? its not like ebay is literally the only online auction house. serious question, btw. not hypothetical.
- mahmud 16y agoHere ya go: http://blog.asmartbear.com/marketplace-business-model.html http://blog.asmartbear.com/marketplace-business-model.html
- mcgraw 16y agoBecause they were the first, and the first to do it really well. It's extremely difficult for companies to compete against that if they can't offer anything new. Marketing tells you that you need to be the first at something for brand recognition. Once a term has been ingrained into society how do you compete with that? You could ask my mom, who never uses computer, if she knows anywhere to auction off an item 'on the computer' and she'd likely say eBay. You can't simply go head-to-head. You can't simply add more features. You have to accept being #2. Most people probably can't think of a way to spin another auction site, well enough, so they don't bother.