Seattle Startup Bonanzle Takes on eBay
In June of 2008, Seattle programmer Bill Harding launched an online marketplace called Bonanzle. The site, a completely grassroots effort with zero VC or angel funding, is in many ways the anti-eBay. Instead of focusing solely on the goods being sold, Bonanzle is attempting to build a marketplace where the people are relevant, too. On Bonanzle, buyers can chat with sellers in real-time or over instant messaging, an experience that delivers a more social experience to the online shopping process. These interactions have allowed Bonanzle to build a strong community, but will that be enough to take on eBay?
What's Bonanzle?
Bonanzle is one of many online marketplaces that have emerged to serve former eBay sellers unhappy with the changes made over the years - changes that some feel serve the larger wholesalers instead of individual sellers. As with any new entrant to this market, Bonanzle isn't just competing with eBay, but also with online giants like Amazon and Craigslist as well as niche sites like Etsy and Worthpoint. To differentiate themselves from the pack, Bonanzle's angle is to re-create the social deal-making experience of a garage sale.
Bonanzle's creator, Bill Harding, originally started it because he was looking for an online experience where you had the ability to post a lot of items for sale quickly and easily, negotiate price and terms on the fly, sell items in groups, and sell a bunch of items in a short period of time. His site now offers all those things to its customers.
On Bonanzle, sellers set up virtual booths where they display the items they have for sale. Online shoppers browsing the booths can then interact with the seller through built-in chat features. The sellers can send messages to people on the site in real-time and they can even integrate their store's chat window into their IM client of choice. This allows them to keep in touch with their online shop even when they're away from the Bonanzle web site itself. For many former eBay users, this level of social interaction is an entirely new experience, as they are used to a more anonymous shopping environment where you often only get to know a seller through their star ratings, feedback, and occasionally email - not through chatting with them one-on-one.
In addition, Bonanzle sellers can capitalize on these personal connections by offering special discounts to their best customers. They also have the opportunity to hold "bonanzas" (hence the site name "Bonanzle"). These are brief 1-3 hour sales where sellers can deal in real-time on all their items. Bonanzle showcases these bonanzas on their homepage in order to drive traffic to the seller's booth.
Besides its unique social experience, Bonanzle also wants to differentiate itself by being easier to use than eBay. On Bonanzle, sellers don't need to use bold, outlined, or HTML-coded listings to get noticed - they just fill in five fields on one single page and their item is ready for sale. That saves sellers time and it's a big draw for new users who found eBay's convoluted set-up process confusing and time-consuming. The system also recommends what an item should be priced at, another time-saver as sellers no longer need to browse through current and historical listings to get an idea of how much things sell for. These recommendations come via Yahoo and Amazon. When a seller clicks "Guess my Price," Bonanzle returns the three closest matches along with the range of prices those matches are listed for. Results are separated into both "new" and "used" price listings, if available.
These differences seem to be working for Bonanzle so far. The site has been steadily growing since its launch as have other eBay alternatives like iOffer.com, eCrater.com, and eBid. Meanwhile, although eBay's traffic has grown a marginal 0.3% over the past year, the company posted its first-ever quarterly sales decline in January 2009.
eBay's Death by a Thousand Cuts?
Says Ina Steiner, editor of one of the largest and most respected marketplace news sources, AuctionBytes, what eBay today has to contend with is "death by a thousand cuts." While very few companies have the scale to compete with eBay head-on, there are many smaller websites that draw buyers and sellers in various categories. "Bonanzle has designed a site that is very appealing and has ignited the passion of a core group of enthusiastic sellers. It's not even a year old, and I expect it will face the same growing pains of other sites," she says, "but it has a lean mean approach that will serve it well."
That said, Steiner notes that one of Bonanzle's biggest challenges will be getting traffic. Sellers lose enthusiasm for new sites if they're not making sales. However, she also makes mention of a new trend among sellers to list on multiple channels, especially among sellers who were formerly content to list exclusively on eBay. For example, they found that 73 percent of the merchants on the EveryPlaceISell.com merchant directory maintain listings on more than one e-commerce site, and 45 percent of merchants maintain listings on more than two sites. And "nearly 40 percent run and maintain their own retail web site," she says.
This tendency to diversify listings may give the eBay alternatives the time to grow before they're entirely abandoned. At any rate, the multi-listing trend has surely had an impact on the alternative marketplaces: currently, the top three alternative sites have about 5,598,000 listings, while eBay has 26,633,000 - that's around 21%.
Kenn Registe, publisher of the financial blog MediaTechAnalyst.com, also agrees that this "long tail" approach is the best way to compete with eBay. Vertical niche sites like Worthpoint, a collectibles marketplace, are a good example of this trend, he says. As far as Bonanzle goes, he also acknowledges the site will need to build critical mass through key differentiators in their business model in order to attract the sellers - and the traffic - they need to grow. If that's not possible, he worries that all the eBay alternatives, including Bonanzle, will end up just competing with each other instead of with eBay itself.
Economic Slowdown? Not for Bonanzle - Site Now Turning a Profit
Despite these concerns, Bonzale's creator Bill Harding thinks they have a shot. "Bonanzle is benefiting from the web emerging from a period where people were so obsessed with anonymity that they gave up the benefits of positive communities and real interactions," he says. And now with 36,500 registered users (a number which has grown by 50% each month) as well as steady traffic growth (they had 545k unique visitors and 9.3m page views last month) not to mention tens of thousands of transactions under their belt, the site has finally pulled its first profit as of February. Harding won't disclose the details, but says that Bonanzle should be financially solvent for the foreseeable future, noting its revenues have grown each month at about the same pace as traffic and sales - that is, between 30-50%.
These numbers bodes well for Bonanzle's future, especially given our current economic climate. Yet will Bonanzle ever take down eBay all on its own? Probably not...but a million little Bonanzles just might.
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thank you, Sarah. Very interesting product and great analysis.
An interesting take on an internet marketplace. I think the name is "interesting." It is definitely relevant to the bazaar-like theme behind the idea, and I guess no name could ever be as bad as "Kijiji."
I would think Bonanzle would attract a more specific audience, as opposed to Cragislist (CL), which captures everything and everyone under the sun.
iList, a new social classifieds site, is a good median between the two. It still appeals to the mass market like CL, but it also provides a more personal venue for transactions.
Bonanzle rocks!
Great write up, keep up the good work Bill and Mark!!! Bonanzle Rocks!!!
http://www.bonanzle.com/booths/Sunflower_Boutique
Thanks for shining a headlight on Bonanzle. I joined at the end of the Beta testing in August, 2008 after stumbling on the site while looking for an alternative to e-who. Signed up in seconds because of the user friendly nature of the site. I have not regretted my move. The grass is definitely greener for both sellers and buyers on Bonanzle!
To compare Bonanzle to ebay is like comparing Apples to oranges. They are both an online way to sell BUT Bonanzles fresh new WAY of selling with in booth chats and trying to set itself apart from the crowd by promoting themselves as the place you can find "everything But The Ordinary" and "relentless Simplicity" is diffenately making this one to shop at!
I Encourage everyone to give this New Site a look!
We have sold on eBay, Yahoo, Overstock, eBid and our own site but nothing has sold on Bonanzle even with discount and Free Items held a bonanza too... We love the format and as it my be profitable for Bonazle it's nadda for us.
Needs Buyers (top loaded with sellers).
Needs to show sell through rate (be transparent)
Needs to promote shopping in advertising
I would love it to be an alternative to eBay but lets face it comparing it to eBay is like comparing Bobs gift Mart to WalMart Volume of sales are not even close.
Never underestimate the power of a million little "Bonanzlers"!
We may not take ebay down; but, we are marching full steam ahead to millions of members. We are well on our way to crippling ebay!
Do be careful of the Bonanzle scary monster!!
Super read! Thank you so much for writing this. Bonanzle is by far the best social marketplace out there. I love being able to chat with (and negotiate with) the buyers and other sellers.
I didn't see www.seeauctions.com on this list. This is a real competitor considering they have auctions and Bonanzle does not?
Bonanzle is a brilliant alternative. Sales will grow as the word gets out and buyers realize how fun and easy it is to shop there.
Great article Sarah...Love the photo shot of the hand picked front page. Another great Bill Harding addition to Bonanzle. Hand picked lists are created with themes by members to showcase the wares in Bonanzle booths... Like so many other enhancements we have seen at Bonanzle free free free...
I am an old time eBay gal from the late 1990's. Never knew much other than eBay until I found Bonanzle. Watching Bonanzle growth has also been watching my own...I have learned to twitter, stumble, blob, google set up, and on and on..The tools and knowledge that Bonanzle shares are for each one of us to grow with them but to also grow for ourselves...
There is a great sharing of information for all to learn from the Bonanzle founder willingness to share...It is the thing I think that has made me want to work harder for success for myself and stand at my booths waiting for the buyers as they discover where all the unique goodies have gone as the great eBay sellers join the ranks...Google sure brings it shares of buyers to keep me content while I learn as I go. Stop by and say Hi anytime.. http://www.bonanzle.com/booths/tree411
Free listings, Free pictures, no fees till you sell and they are nice and low.
You can't lose here.
Count me in.
Bonanzle is such a place that one can find just about anything you are looking for and if not, the members will work diligently to find it for you.
For instance, My last name is Mucha, I bought an Alphonse Mucha poster on Bonanzle within my budget, shipping was fast from Jacksplace's Booth.
You can get a few personal shoppers to track items down for you. Forum postings abound with interactivity with lookers and finders.
I do personal shopping and while out at estate sales, yard sales, thrift shops and retail stores will look for reasonable products for anyone.
Bonanzle is global, people find what they need within this global trade market, which is a great thing. Check it out, wherever you are and pose a question in the forum to find a hard to find item, within reason of course. Bonanzle has integrity and class.
What you are looking for could be at Bonanzle Right Now, and if it's not, people will find it for you. It's a great venue.
Friendliness is sincere and genuine, it's a salt of the earth, cool community.
The cream of the crop Bonanzlers are truly outgoing and willing to extend their hospitality and knowledge to anyone who inquires. It will give ebay a run for their money.
Very informative article. I'm getting ready to go sign up. Sounds like a place where I'd really like to be. Thank you Bonanzle! TH
A very well written article, which shows so clearly why Bonanzle is so well-liked and growing so rapidly.
Great story and yes Bonanzle rocks for sure! Check it out and see, you will be glad you did!
Love the Bonanzle site! Checked it out and signed up. Great article, thanks!
Nice article Sarah that highlights the features and outlook of Bonanzle! Thanks!
My favorite feature is the real time chat in a seller's booth. If someone visits and posts a question, I am able to answer immediately.
Another favorite is the ability to build a widget with booth items/pictures to be placed in a blog or website. Some sellers have moved on to build websites or write blogs featuring other Bonanzle sellers with widgets.
So pleased to have found Bonanzle on 8/20/08! We describe Bonanzle as a place with vision and technology which produced a simple platform for buyers and sellers.
Hopefully http://officehax.com can become one of those thousand cuts
Just found your article and would like to say Thank You. Very nicely written and fact filled. Bonanzle is feature filled user friendly technology at it's very best. Transparency is the feature I love the best, no hiding behind an automaton email system, the co-founders Bill Harding and Mark Dorsey are present and involved in the pulse of their community of buyers and sellers.
Community members are encouraged to communicate with one another and with Bonanzle's owners.
Anyone who hasn't please accept my invitation to pop in and take a peek at what Bonanzle has to offer.
Thank you, Sarah. I will check them out and see if I can switch from ebay if it saves me more money :)
Great article. I am an ex-ebay seller who moved to Bonanzle.
I joined Bonanzle Halloween night 2008. I had some friends that kept telling me about it before that but I had lost all faith in smaller sites, and all faith in eBay as well as I was listing things and they would not show up in searches sometimes up to 48 hours. I was completely frustrated and sick of online sales, which was bad as it is our income.
Somehow on Halloween night one of my friends convinced me to give Bonanzle a look. I did and right away I really liked the feel of it and the community. I set up shop and have not looked back. I have only listed 1 auction on eBay since being with Bonanzle. All of our income is from Bonanzle & also books on Amazon. Not that we are making a killing but we are making it and in this economy that is saying a lot.
Right away after getting started with Bonanzle I was once again finding myself motivated and excited about what I do. Bonanzle brought back the fun of online sales for me. Even wearing a Bonanzle Tshirt right now. Yeah I am a big fan, but with good reason. I have gotten so many good deals, all my sons Birthday shopping was done on Bonanzle. Most of Christmas was on Bonanzle too. Not to mention over 200 items sold in my main booth and my book booths I think around 50+ all together. Last night I had a Bonanza and in 3 hours sold 18 items and had so much fun meeting with everyone in my booth and chatting.
Which brings me to one of my favorite features of Bonanzle. It combines social & sales perfectly. I have always wanted to open a thrift store brick and mortar. I love meeting people I love chit chatting. Bonanzle gives me a way to mix what I love right with my online sales. I have met so many wonderful buyers and sellers its unreal. And Bill Harding and Mark Dorsey are just amazing. I have never seen site owners so dedicated, so INVOLVED, so willing to listen and take advice from members. It is simply amazing and so much different then anywhere else I have ever sold.
I suggest for everyone whether looking for some great deals, a unique item, fun chatting while shopping or a new place to sell, everyone should come check Bonanzle out.
And its FREE to list, free picture hosting, simple simple simple. And no relisting and all of that mess. The time saved is amazing. IF you can manage to stay away from the forums long enough LOL. It's so much fun chatting with everyone I get behind on listing a lot :)
@Multi channel Seller
I'll acknowledge not every seller will succeed on every venue, but you are wrong in your assertions of the composition of Bonanzle members being top loaded with sellers
There are 37273 Members right now and of those 37,273 - 10,772 are sellers that is a difference of 26,501. I wouldn't call that top heavy with sellers.
Another consideration is it is not a requirement to sign up in order to purchase from Bonanzle. Of the 42 transactions 27 were with Guest Buyers not members at all. The remaining Customers came directly from GB the same day and signed up to make the purchase. Of course this is only my experience, but I doubt I am the only seller with this experience.
You are also wrong about transparency of sold item data
Not sure what STR is for fixed price items, but you can view sold items on Bonanzle - Homepage > Buy > Category > on the left hand bar choose the sold items option - there you go all the items that have sold per category
Advertising costs money - this is much more difficult to obtain for a site like Bonanzle that has 0 pre-sale fees & has not benefited from Venture Capital funding. For people who want advertising campaigns launched, I am curious if you are willing to pay listing, booth, and image fees like we do/have selling on ebay? There is no such thing as free shipping right?
I think Bonanzle has had a tremendous impact in the e-commerce market we are all so familiar with. I 100% agree it is inappropriate to compare Bonanzle to eBay, but not because I don't think Bonanzle is an insignificant force in the market. Bonanzle is a new innovative social shopping site where members create the atmosphere and content within the site. Bonanzle is a people driven social shopping site, unlike eBay that is driven by arbitrary, inconsistent reliability, and manipulated coercive "management team". I think the phenomenal growth of Bonanzle over the past 6 months is the people speaking and quite loudly, there is a new player in the game and eBay's days are numbered.
Bonanzle has a superior product than eBay in every conceivable measure.
Of course I meant
I don't think Bonanzle is an insignificant force
Terrific Article! Here are a few other great resources:
http://www.businessweek.com/technology/content/mar2009/tc2009033_379735.htm?site=cbs
http://www.examiner.com/x-312-Auctions-and-Antiques-Examiner~y2009m3d1-Are-you-an-exeBay-seller-If-so-what-can-they-do-to-win-you-back
http://www.channelinsider.com/c/a/SMB-Partner/How-eBay-is-Alienating-Selling-Allies/
http://www.ajc.com/services/content/printedition/2009/03/08/spotlight03083dot.html
It's really great Article.Love the Bonanzle site!.
It's full of SCAMMERS on bonnnalzzzle.
Stay away from this place!
It's taking a while but sales are slowly picking up on bonanzle. For me anyway. I used to sell on ebay until sales disappeared at the end of 2008. Bonanzle doesn't charge until an item is sold. They don't make money if you don't money. Worst case you don't lose money. Ebay I was wasting time and money.
You guys need check out Corkin.com
Bonanzle empowers the smaller sellers. It's free to list, free pictures, no tedious relisting, etc etc.
Buyers will find the prices lower, too. Sellers don't have to charge higher prices to cover their fees.
We've been buying and selling on Bonanzle about 6 weeks and are happy to have found this site. It's brought fun back to selling on the 'net.
Any new business can expect it to take up to three years to achieve a profit. At the rate, Bonanzle is growing it and all its sellers will be making profits in much less time.
When I saw how fast Bonanzle was growing, I jumped right in. I found the site very easy to navigate as well as super easy to list on.
They give you an upload of 4 photos FREE, No Listing Fees, and Small FVF fees. What more could any seller ask for ?
I have sold 42 items on Bonanzle between Oct 2008 and April 2009. On Ebay I sold 0 in the past two years.
That is a big difference worth taking notice of.
One of the Best things about Bonanzle, we get a human response to our customer support emails. It just doesn't get any better than that.
ebay is still King in the online auction world, but efleaa is the crowned Prince, heir to the throne. We are efleaa, We are You.
I like bonanzle. Not only you can bulk upload your items, you also have a chance of people adding your items to their hand picked lists. I've had several of my items hand picked recently. I'm surprised to say the least.
I have sold on Bonanzle since September 2008.
For the longest time I was one of the passionate supporters of Bonanzle. Not anymore. I just closed my store there.
Although I have to credit them for their superb technical skills, which resulted in a truly usable starters marketplace for old stuff, they lack the following two essentials to continue and will therefore eventually fail
Missing with the Bonanzle team are:
1) A reality based solid long term vision on their business
2) Communication skills
Bonanzle's advertised vision is totally limited to a slogan, not to a well thought through business model. They advertise that their vision is to be a place where one can find 'all but the ordinary'.
First of all their slogan statement is simply not true. There are tons of items for sale there which are 'ordinary', in fact the majority of items is.
There is nothing wrong with items for sale being ordinary, but please do not create a false image, neither towards buyers nor towards sellers. It comes over as a childish 'I wanted things to be a certain way, so they are that way' in other words, 'reality is optional'.
Secondly, just mentioning what 'products' you desire to sell on your marketplace (aka 'out of the ordinary), is not really a product of a lot of deep thought. It does not tell anyone what differentiates you truly from other places (plenty who sell that kind of stuff) and therefore does not offer a truly unique selling proposition, a selling point that is unique only to Bonanzle and that is also hard to copy by the competition, so hard to catch up with.
Bonanzle also pretends that their site is 'simple', which means 'simple in use, in navigation', suggesting that one can list there much quicker and buy there much quicker than elsewhere. The opposite is true. The place is still hard to navigate and has many non-intuitive functions that slow buyers down. Listing there is also only easy if one has very little 'listing content' to put up. If one has lots of text, a template and/or lots of images, listing becomes problematic, time-consuming, sometimes even impossible (example: true templates are really a 'no no' there). And, the interface is becoming more complex every day, which is obviously the result of functional additions. There is nothing wrong with 'not being simple' but instead 'offering lots of functionality', just don't pretend you are something you are not.
Also Bonanzle purports to be a fun place to be. Originally that was certainly the intent of the owners as well as the early adopting sellers and quite a lot of humorous activities and messages reflected that. However, the owners have turned this 'we want to be a fun place' into a mania, where they will not tolerate any disagreement on their site, regardless if it is a civil discussion or not. Every posting and thread on their site has to be '100% hunky dory cheery positive etc'.
To enforce this unrealistic 'smile' mania (one sees it with some signs in B+M stores telling staff to 'smile') the owners of Bonanzle have developed a battery of tools to censor anything that they feel is not 'cheery', so any disagreement. Messages get frequently garbled by their own staff (one specially hired for this recently) or they get relegated to a drama section o they get deleted outright.
Imagine, censorship on what is advertised as a mix of social networking and e-commerce. That is like saying that human communication must always be positive. In the real world out there this does not work, neither will it in the virtual world on Bonanzle.
Initially I underestimated the 'censoring' by Bonanzle staff a bit an thought that they were merely taking out intentionally disruptive people, but, now that I have followed this for a while I believe that the Bonanzle owners are simply censoring dogmatically, trying to eradicate discord (even if between reasonable people) on their site altogether. Note that I also had my own run ins a few times recently with the Bonanzle censoring machine on what were perfectly factual postings (maybe with some passion, but important subjects deserve passion).
One of the main reasons why most Ebay sellers who left for Bonanzle joined teh new site, was because it purported to e friendlier than Ebay, less censoring. The truth is that Bonanzle is actually MORE censoring, dogmatically so. The friendly atmosphere on Bonanzle is not truly friendly, since many sellers there get frustrated by the Bonanzle censoring machine. In fact, Bonanzle''s own censoring machine is what is destroying the initial friendliness.
Bonanzle has made the same mistake as Ebay, by fostering an adversarial atmosphere between its members and that has resulted in all kinds of 'tribes' there, a Balkanization, the result of many members using the reporting system of Bonanzle to censor those they disagree with and viceversa.
Although I formally and morally agree that Bonanzle has the right to censor whatever it wants on their site, since it is their property, I do not believe it is realistic to do so. It is actually quite irrational as it is not in Bonanzle's self-interest to create an adversarial atmosphere on its site. It is more of interest to them to offer any debating, discussing, disagreeing members a forum. The only thing they needed to do is channel it so such public discussions do not affect 'selling' negatively. In general that works best if one gives sellers a separate forum to talk freely (even where to disagree), separate from buyers, just like in the real b+m world. Despite requests for this from many sellers, no such attempt was made.
Instead Bonanzle continues to unrealistically try to mix seller and buyers. Sellers are basically expected to have buyers listen in to their business related conversations with fellow sellers on the site's forums. Ever seen such a thing in the real world? A very uncomfortable set up, again caused by the Bonanzle owners' attempt to make reality 'optional' instead of 'what it is'.
This Bonanzle censoring machine is the logical end result of the lack of fundamental principled vision at Bonanzle as well as their insufficient communication skills (quite common among geeky programmers).
If the Bonanzle owners would one day want to fix their mistaken path, I am counseling them to first come up with a realistic view of people and the world around them, of how people trade and communicate best, There is plenty of experiential information out there on that, thousands of years of it.
They'll discover that only a fact-based laissez-faire vision will work, where people are offered the greatest freedom to trade with and communicate with each other, just like good old America was most successful when it was the freest. One cannot force a mind, not even Bonanzle can do that. A carrot and stick approach will not work with sellers nor buyers in the long run. Only a carrot will achieve long range success.
Sorry, Bonanzle, but reality is not optional.
Great article, keep up the good writing, thanks Jerry at www.efleaa.com.
bonanzle you gotta be kidding it is all smoke up your and mirrors
all west coast venues these west coast venues do a lot of bull out here on the net
figure that is why they all got fired from Ebay
Ebay started cleaning house a few years ago and all these LOL alternatives to ebay and these real funny bloggers have come up everywhere
alternatives to ebay no wonder you all got fired from ebay
do you all know what alternative means?
how about the difference between sellers buying from sellers under false ID or just a buyers ID and a seller ID you know where you have a bunch of different IDs and pretend to be some one else LOL
a whole bunch of people who have three or more booths cause they cannot fit their items in one LOL and are so stubborn cause it is free LOL LOL
half the shops are closed cause those real people got tired of waiting for their so called fellow bonzlers to do something about the cliques there
they ravage thru the discussion boards saying what ever they want and just say oh mark you are so cute and that bill he's a hunk LOL LOL
I know all this cause I actually did the research and did call mark a cutie many times and bill a hunk and I was in and in with the clique just went in under an alias opened up a bogus shop
didn't matter cause sales there are null
and just did what the clique there is doing and wow LOL
you west coasters just keep doing those drugs you're just fine LOL LOL LOL LOL
me me me me
Thats what they should call bonanzle me me me me me
Hey yeah lets join bonanzle where you say and do what ever you want to anyone.
sell to each other. call people all sorts of names and just run wild and pretend its the best acid trip that has come out of the west coast. LOL
ebay alternative hey west coast come out come out where ever you are LOL.
what a bunch of west coast hype
the site is slow, and after a all most of what 2 years and items in your shop just disappear and not cause they sold. sell at bonanzle? LOL
another west coast joke
and how is bonanzle who is not an auction site be an alternative to an auction site ebay?
can't you bloggers get a real story going?
oo they pay you a percentage from bonanzle.
I seen that up over there where you can advertise at places like this on the net for a fee from your so called sales LOL.
you know that more than half those shops or booths at bonanzle are closed.
they just never took them down right DUH WHA!!! LOL west coast is so hip I really LOL LOL
cheeeeeese you internet bloggers are starting to sound like FOX NEWS
gimme me a percentage Ill say anything
OK just tell mark hes cute and bill hes a hunk and your in at bonanzle