Tuesday, August 07, 2007

Buy.com Announces Garage Sale for Facebook.

Buy.com announced today that they have launched a shopping cart application called Garage Sale for Facebook users. The idea is to leverage the network effect of Facebook's very active user base to sell household items.

Ever since eBay commissioned a new survey conducted by Nielsen, that revealed the average American household had over $3,100 in unused items just laying around their home, companies have been lining up to reach out to the casual seller.

Buy.com has now jumped into the fray. Their application is not a solution for full-time sellers but it does address some of the problems the casual seller faces when selling that $3,100 in items sitting around the house.

The Buy.com application is by no means a "killer app" but if they can find a way to collect all of this inventory that Facebook sellers will be selling on a marketplace site. It may very well be the beginning of something big.

eBay's bread and butter is not the casual seller but they wouldn't have commissioned the survey if they didn't want to reach out to that segment of the marketplace.

I've said it several times in the past; eBay's problem is not one big competitor but thousands of competitors chipping away at a segment of their business -- Death by a thousand cuts. Garage Sale by Buy.com is just another of those thousand cuts.

How does eBay react to this new app? Do they ignore it or aggressively target Facebook users? Perhaps they just buy Facebook so they can own the real estate.

I added my own Garage Sale item so you can see how it looks.

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