Mercata will cease operations on Jan. 31.
Shoppers bid online against the clock for new household items, such as blenders and DVD players.
As more buyers signed on, the price dropped accordingly. The model required that they encourage their friends and acquaintances to join in the group-purchasing effort to drive down the price. But the market has become so depressed, no one is interested in investing in e-commerce companies right now. We had over 20 conversations with potential investors over the last two months, but even as we talked, conditions got worse. People changed their minds.