Bricklink: A million dollar business?

[CelesAurivern]

For those of you who are familiar or do business on Bricklink.

I'd like to hear some input about how much the site makes in commissions.

Myself, I'm a bit a of a regular buyer, spending about USD 150-200 a month, on average.

I observe that there are about 50,000 transactions per month, observed over a period of 6 months.

Now, assuming we assign a conservative estimate of USD 50.00 per transaction:

No. of Transactions x Avg transaction figure x 3% commission rate x 12 months

50,000 x 50 x 0.03 x 12 = USD 900,000 p.a.

That's quite a bit of money for a sole proprietorship and business that basically runs itself.

[Ed Mack]

For those of you who are familiar or do business on Bricklink.

I'd like to hear some input about how much the site makes in commissions.

Myself, I'm a bit a of a regular buyer, spending about USD 150-200 a month, on average.

I observe that there are about 50,000 transactions per month, observed over a period of 6 months.

Now, assuming we assign a conservative estimate of USD 50.00 per transaction:

No. of Transactions x Avg transaction figure x 3% commission rate x 12 months

50,000 x 50 x 0.03 x 12 = USD 900,000 p.a.

That's quite a bit of money for a sole proprietorship and business that basically runs itself.

I think they are worth a bit more than that actually. That's what happens when you have no competition. But with anything else, if you don't improve and keep up with the times, someone might come along and design and develop a better product and put you out of business. Time will tell.

[stackables]

I can't stand their forum format.

[StarCityBrickCompany]

I think they are worth a bit more than that actually. That's what happens when you have no competition. But with anything else, if you don't improve and keep up with the times, someone might come along and design and develop a better product and put you out of business. Time will tell.

I think that is easier said than done. It would be hard for an upstart to compete with Bricklink. Some people get fed up with eBay fees & leave to go elsewhere (somewhere I guess), but there is still only 1 eBay. With Bricklink, I don't see the fees ever getting too high & the alternative would be to go back to eBay & pay their higher fees. Plus, I think that Bricklink sellers feel a certain commitment towards Bricklink. Bricklink may not do a lot of improving on things too much, but I think that is better than how eBay changes the selling rules every few months, forcing sellers to jump through more & more hoops, just to try to stay even. With Bricklink, you never get the sense that they are greedy, it seems more as if they are not too concerned about making money.

[Rich B]

I think that is easier said than done. It would be hard for an upstart to compete with Bricklink. Some people get fed up with eBay fees & leave to go elsewhere (somewhere I guess), but there is still only 1 eBay. With Bricklink, I don't see the fees ever getting too high & the alternative would be to go back to eBay & pay their higher fees. Plus, I think that Bricklink sellers feel a certain commitment towards Bricklink. Bricklink may not do a lot of improving on things too much, but I think that is better than how eBay changes the selling rules every few months, forcing sellers to jump through more & more hoops, just to try to stay even. With Bricklink, you never get the sense that they are greedy, it seems more as if they are not too concerned about making money.

All great points, I totally agree with you on how it's nice they don't make you "jump through more & more hoops" like ebay constantly does, it's so true and ridiculous, and does make ebay come across as more greedy. Also makes it so much harder for ebay sellers to track/estimate selling costs when rules are always subject to change.

However I don't like that I feel as if I'm using a website from the mid 90's when I'm on Bricklink, seems very outdated, but hey it works, and they're getting the job done. Just think it'd be a lot better with an updated site, but then again I don't know the first thing about designing websites so who am I to speak........

[Ed Mack]

There are plenty of talented programmers out there who could reproduce the Bricklink website in an improved version if they knew how much money it actually made. To many people right now, LEGO is still a toy and they don't think of it as a business. Bricklink works, no doubt, but there could be a competitior created that is much more user friendly that could hurt Bricklink's bottom line dramatically.

[Rich B]

There are plenty of talented programmers out there who could reproduce the Bricklink website in an improved version if they knew how much money it actually made. To many people right now, LEGO is still a toy and they don't think of it as a business. Bricklink works, no doubt, but there could be a competitior created that is much more user friendly that could hurt Bricklink's bottom line dramatically.

Very true Ed, I think you've discovered the next project for you and Jeff if brickpicker ever gets boring, which we know will never happen ;)

[Ed Mack]

Very true Ed, I think you've discovered the next project for you and Jeff if brickpicker ever gets boring, which we know will never happen

If I could program, we might be able to tackle such a project. Right now, I have a list a mile long of stuff for Jeff to do. I'm almost afraid to ask Jeff to change anything...LOL

[TheOrcKing]

I couldn't even begin to fathom just how much BrickLink is even remotely worth...

I can't stand their forum format.

Oh my god! It's absolutely horrendous! Forum formats (and web sites in general) have definately progressed in the last ten or so years.

[CelesAurivern]

There are plenty of talented programmers out there who could reproduce the Bricklink website in an improved version if they knew how much money it actually made. To many people right now, LEGO is still a toy and they don't think of it as a business. Bricklink works, no doubt, but there could be a competitior created that is much more user friendly that could hurt Bricklink's bottom line dramatically.

Indeed, the figure I threw into the air was a conservative estimate.

But yes, it would take just a few enterprising people to pool resources, think up a business solution, maybe hire a few said talented programmers, and woohoo!

But first, a capable leader with sufficient didication and ambition to kickstart.

[stoneboi]

cant stand the website and forum. but there are no other alternatives if you are looking for specific parts..

[StarCityBrickCompany]

I think Bricklink works perfectly fine. Does it look outdated? absolutley. But it works great for its purpose. I see it very much as a database & most of the aspects of the site seem to function that way. Yes, the forums are not appealing, but that goes back to the point that they are not that interested in being a social website. I like that I can go there, do what I need to do & be done. I can not stand it when eBay changes things, sometimes even making entire options disappear. I am trying to run a business & I would rather not need to waste my time, seaching for where things have gone (if they are still there). As far as Bricklink changing, I could see the time coming when they decide to sell it - The new owners would make all the changes that people are looking for, but there will be a price that we pay.

[Ed Mack]

I think Bricklink works perfectly fine. Does it look outdated? absolutely. But it works great for its purpose. I see it very much as a database & most of the aspects of the site seem to function that way. Yes, the forums are not appealing, but that goes back to the point that they are not that interested in being a social website. I like that I can go there, do what I need to do & be done. I can not stand it when eBay changes things, sometimes even making entire options disappear. I am trying to run a business & I would rather not need to waste my time, searching for where things have gone (if they are still there). As far as Bricklink changing, I could see the time coming when they decide to sell it - The new owners would make all the changes that people are looking for, but there will be a price that we pay.

It does work fine, after you spend two weeks getting used to the navigation on the site. LOL...No biggie really. I find what I need. It takes a lot of work to make all that information run smoothly. I think people get spoiled by newer websites.

[TheOrcKing]

It takes a lot of work to make all that information run smoothly. I think people get spoiled by newer websites.

Hmm... That's true on both parts. I remember a teacher I had way back in high school saying, "The faster technology moves, the more impatient people become." I'm inclined to agree with him.