The current dot-com shakeout indicates that the true nature of the Internet lends itself towards smaller niche players. Huge corporate funded web businesses are failing at a dizzying rate while independent Online Auction sellers and entrepreneurs are prospering at a rate that is unprecedented. The reason for this is simple. Online auctions are simply the easiest way to complete a business transaction on the Internet. Unlike other businesses, home-based or larger, online auction selling requires very little startup investment.
Most sellers begin with a computer, Internet connection, and a little business know-how.
You'd have a tough time finding a top tier eBay Powerseller that got started with a bank loan or corporate financing. Online auction sellers may proceed and grow at their own pace without the worries of catastrophic financial loss. The current dot-com shakeout has revealed that Online Auctions and Pornography are the only two online business sectors that continue to grow in popularity and profitability. Of the nearly 700,000 regular sellers on eBay, around 75,000 of those do consistent business. It is estimated that nearly 40,000 of regular sellers are in the Powerseller category and they are growing every day.