Book Review: FutureShop by Daniel Nissanoff

"According to an ACNielsen report issued in October 2004, American households have accumulated an average of more than $2,200 in goods they no longer use, which retain a market value of nearly half that. With more than 110 million households in the United States, that works out to an aggregate of more than $250 billion in lost value already and another $250 billion that will, likewise, soon dwindle to nothing if things don't change."

That statistic jumped off the page for me when I read FutureShop by Daniel Nissanoff, the founder of Portero, a seller of used luxury goods like watches and jewelry. Obviously, he's not exactly a disinterested observer and the book does make a passionate case for his company's business model, but it nonetheless offers a useful perspective on the rise of eBay and similar online marketplaces.

Among other things, Nissanoff argues that the growth of online auction sites makes it feasible for consumers to more easily access luxury goods. Just as car leases transformed that market by enabling drivers to lease cars they couldn't afford to buy, the ability to resell a Hermes tie or a Gucci handbag or a Rolex watch could put those products within reach. Essentially, it is the concept of temporary ownership: buy it, use it, sell it.

He also points out that with ever-shrinking product cycles, gadget guys (like me) can always have the latest gizmo without the guilt of a closet full of perfectly good products that simply have been displaced by a newer model.

The problem, he says (and I agree), is that despite all the talk about eBay being simple, it isn't. A considerable amount of effort is needed to successfully launch an auction. Pictures, description, timing, pricing, notification, shipping, etc. all take time. Hence the rise of auction drop shops where you take your stuff to a brick and mortar establishment who then handles the transaction from soup to nuts and cuts you a check afterward, less whatever commission they charge.

If you want insight into the online auction universe, this book makes sense for you.

Bottom Line: Recommended

Tags: FutureShop, Daniel Nissanoff, eBay, auction