Yahoo closes their auction site
This news perked my interest ( from my start-up past). Yahoo is closing their US auction site (Yahoo are still the #1 auction site in Japan) . Yahoo has given up on being #2 in the US. No surprises really, Yahoo is getting caned by Google and it looks like they are focusing their resources on the challenges ahead.
Looking at the NZ market, it begs the question. Why the other the NZ auctions sites don’t get it? There is only ever one winner in each market for auctions. (They only market that isn’t true is China, they’re still fighting it out). You can’t have a marketplace without lots of buyers AND sellers. Its the old chicken and egg situation. Look at www.sellforfree.co.nz, there’s only about 50 items. (All the billboards have been put to good use!) Its going to have to work really hard to gain some traction against Trade Me!
If you’re thinking you want to build the next “trade me”. Stop! Buy some lotto tickets, its a better option. There is very little chance of real success.
OK OK that’s a bit harsh. If you still think you can do better, find a niche and become the dominant marketplace in that niche. That’s what the Hirething’s guys are doing and they are starting to get some traction.