(6 of 7)
But not everyone is going to win in the new eBay economy. Hardest hit so far are antiques and collectibles shows, which aggregate items like eBay does, but less efficiently. Joe Spotts, president of L&S Management, owns two shows--one in Denver, the other in Kansas City, Mo.--and he says the number of vendors at both has slid 30% in the past 18 months. And eBay is the reason. "It has the potential of absolutely destroying the business," says Spotts. "I've seen several shows around the country that are near shutting down." Flea markets could be the next to suffer. When the National Flea Market Association held its annual meeting in Orlando, Fla., in October, 100 members jammed into a session on the Internet future to hear dire predictions of what the Net would do to their land-based businesses.
Classified ads--and the newspapers that heavily rely on them for revenue--are also vulnerable. An eBay listing is cheaper; there's no limit on length; you can include a photo; and it reaches far more people than any newspaper.
Flea-market aficionados insist that eBay is doing a more abstract kind of damage: it's destroying the pleasures of the offline collectibles world. Al Hoff, author of Thrift Score and collector of "everything but Levolor blinds," says eBay has changed the atmosphere in flea markets and thrift stores. She now comes across entrepreneurs who are trolling the aisles looking for items they can resell for a higher price online. "The code of ethics used to be that you bought things for yourself," she notes. And she objects that eBay's efficiency is making it harder for bargain hunters like herself. A friend recently tried to buy a Pink Floyd eight-track tape on eBay--and watched as it sold for $227. Time was, Hoff says, when you could find eight-track tapes selling for a quarter at thrift shops. "Now everything goes for the highest price anyone in the world is willing to pay for it," she says. Hoff is worried that online auctions may ultimately spell the end of flea markets and thrift shops, and that an important slice of Americana will be lost.
eBay is sticking with its core mission of consumer-to-consumer auctions but is also working to expand its reach dramatically. In October, eBay announced a new venture: eBay Great Collections, a new area on the site for antiques and fine collectibles. Along with the acquisition of Butterfield & Butterfield, the world's fourth largest auction house, Great Collections marks a move by eBay into the high-end market. (The average sale on eBay is currently about $40.) eBay has also begun rolling out local eBays, starting with eBay Los Angeles. The idea is to provide a local market for big items like cars and furniture that can't easily be shipped long distances and for location-specific items like concert tickets.