EcommerceBytes-NewsFlash, Number 1053 - June 30, 2005     3 of 6

Rotman Auction Bails out of eBay, Citing Decreased Traffic

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Paid Inc. said it will phase out its auction sales of sports, Hollywood and other collectible memorabilia on eBay within its Rotman Auction brand, which has been a Platinum level seller on eBay for many years. The company said it will instead focus on developing its more lucrative, less labor-intensive celebrity services offerings.

Greg Rotman, CEO of Paid Inc., said "EBay's traffic has decreased over past nine to 10 months, its fees have gone up, yet the price points and sales per item have gone down, creating a low-price, bargain marketplace for our type of business" Rotman noted. "Processing 600 - 750 sales per week on eBay requires ten staff members, compared to three staff members for 500 sales through our celebrity web sites."

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Ina Steiner is co-founder and Editor of EcommerceBytes and has been reporting on ecommerce since 1999. She's a widely cited authority on marketplace selling and is author of "Turn eBay Data Into Dollars" (McGraw-Hill 2006). Her blog was featured in the book, "Blogging Heroes" (Wiley 2008). Follow her on Twitter at @ecommercebytes and send news tips to

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