Before anyone sends me another email about the new online-auction site they plan on launching, please read this blog post by Troutgirl (link).
Joyce talks about the cost to the entrepreneur who starts an Internet company (hardware, software, staffing,....). With an auction site, you are also dealing with buyers and sellers who are trusting you to keep their information safe from hackers, protect them from fraud. Not to mention provide customer service.
Any company that wants to start an online-auction site should recognize their obligation to members. Just because a site is low-cost or even free does not mean you should not value your customers.
If you launch a free auction site, how are you going to provide support to buyers and sellers? Sellers may not be paying you, but there is a cost to them - their time is money! Most entrepreneurs underestimate the costs and time requirements of providing even adequate customer service.
I also would add that Internet services should provide information on their website about themselves. Who are you? What did you do before launching your site? Why should we trust you with our personal information? We should be able to do a WhoIs domain search and find your name, address and phone number. We'd also like to know how you are going to drive buyers to your site!
If you don't have lots of money and commitment, don't start an auction site or service.