Online Biz A Bust
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Updated: 1:53 AM Dec 8, 2005
Online Biz A Bust
eBay auctioneers hit hard times
Many independent online brokers have gone out of business, leaving customers asking about their money and sellers wondering what happened to their merchandise.
Posted: 9:29 PM Dec 7, 2005
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Many independent online brokers have gone out of business, leaving customers asking about their money and sellers wondering what happened to their merchandise.

A year ago, Mike Hoffman thought his online consignment store would work. It was busy at first, but a few weeks ago Hoffman had to close his online auction business.

So customer Don Welch is wondering about $700 of household items he left to be sold on eBay.

"Lie to me if you have to," said Welch. "Just tell me something. Don't leave me in limbo. Where's my money? Where's my product?"

By phone, Hoffman says he had computer records problems, "But I'm making everything right with people. I always ran an honest business and never tried to deceive anyone."

Sell Smart joins another online consignment store, E Street Auctions, in hitting the delete button.

But those two online consignment stores in Omaha aren't the only ones that closed in recent weeks. A customer of one located near 119th and I street contacted Six On Your Side.

He's been unable to contact the owner and find out what happened to products he brought there to put on eBay"

John McDermott has been waiting for a response from Auctionetics, which put an estimated $500 in motorcycle parts on eBay for him.

"He should at least contact you and tell you if he's gone out of business," said McDermott. "If he's going out of business (he can) afford you the opportunity to retrieve your property."

The owner of Sell Smart says he couldn't make a decent living with online consignments.

The more merchandise you get in, the more labor costs go up.

"They might have a great idea but they need to figure out how to make money"

But customers say they shouldn't be the one's left out in the cold.

The Heartland Better Business Bureau has few complaints on the industry as a whole.

But the owner of Auctionetics did not immediately return calls from Channel 6.

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