Why is liquidation.com able to compete against ebay?

Question

this is a question i have in my e-commerce class. please help if you can.

Answer 1

Because Liquidation.com is a niche auction site, and focuses on a more targeted market -- those big and small companies that are liquidating as their sellers and those buying wholesale lots as buyers.

It focuses on B2B or business to business transactions

It is not competing head on with eBay in the sense that unlike eBay, it is not selling itself as everything for everyone. They are not looking for moms trying to sell clothes their kids have outgrown or people who wants to sell their old DVD collection or those who had buyer remorse and now want to dispose of the ridiculously expensive handbag they bought. Rather they target liquidators, businesses going out of business, or those businesses looking to sell their products in bulk.

When you want to compete with a gargantuan business such as eBay, you can stand a better chance of getting your share of the market if you focus on a niche -- unless you have the resources and determination to compete against an industry giant