Online auction site Wheedle is closing, less than two years after it was set up to take on Trade Me.
The site’s sole funder, Mainfreight co-founder and rich-lister Neil Graham, decided against further investment in the company, he said in a message to Wheedle members tonight.
“Our aim was to create a commercially successful site where people could buy and sell online without costing users an arm and a leg.
“More than 80,000 members backed us and we’re very proud of that achievement.”
With respect Wheedle could almost become a text book case of how not to do a launch. Competing with Trade Me would have been challenging for the best of competitors, but Wheedle never got it together.
Launched in October 2012, the site aimed to undercut Trade Me by charging a flat-rate $1 fee on items that sold for more than $20.
People don’t care much about the fees. They care about the price they’ll get.
NBR has a good feature on what went wrong.