1@eBay. Are they the best option for Collector Cars?

eBay. Are they the best option for Collector Cars?

eBay is the largest online auction site in the world. You can find anything from Wind Captured from the Katrina Hurricane to Rare Antiques. They have made millions putting buyers and sellers together and pioneered consumer and dealer based online auctions. I decided to take a good look at the over 1,000 collector car auctions that were posted on eBay in the last two weeks. I think you may agree that my findings are a bit startling.

The Statistics
Most searched for term on eBay: Xbox 360
Most Watched Item: One Owner 1942 Vintage Martin D-45 Guitar
Hmm. No collector cars here!

Most Popular Make and Model Listed
1969 Chevrolet Z-28 Camaro. Low Retail $19,100
Average Winning Bid: $7,296.
A staggering $11,804 off a low market price.

Top Auction:
1968 Shelby : Shelby GT500 Matching #s
Auction ID: 4611842807 - Winning bid $118,000

Auction Results From February 9 to February 22 2006
1,000 Collectible Automobile Auction listings were examined
280 Sellers appeared to be dealers
4,944 Bids Were Placed
120 Cars Had 0 Bids
263 Cars Reached the Reserve Price (Successful Sale) estimated gross $1,911,000
738 Cars Did Not Reach Reserve (No Sale) estimated gross $5,400,000
Volume of Non Winning Bids $2,900,000
Average Winning Bid: $7,296
Successful Sales $1,911,000

*Estimated eBay Revenue $58,000 (based on current eBay insertion fees)
$24,000 from Auctions reaching the Reserve Price
$34,000 from Auctions not reaching the Reserve Price (No Sale)
Estimated Fees Collected: $58,000

The eBay Money MachineKeeping the above statistics in mind, the emergence of new online auction sites has been a bit slow partially because of the tremendous marketing power of a multi-billion dollar behemoth that rivals Wal-Mart in the marketplace. Most have gone the way of the Mom and Pop stores. One of the biggest challenges faced by alternatives to eBay is attracting sellers who are willing to give them a shot. You need listings to attract bidders and you need traffic to attract sellers. It?s the whole chicken and the egg story.