A Recession will be Good for Craigslist

With the “r” word (recession) slowly going from a whisper to a quiet roar, the spending habits of consumers are going to quickly change.

If people are going to make purchases, many of them will be bargain-hunting – waiting for increasingly anxious retailers to have sales, or live without something new until they can afford it or their existing computer, jeans, car, etc. no longer works.

Amid this consumer landscape sits Craigslist, which has supplanted eBay as the leading place online to find bargains. If consumers are going to be penny-pinching, Craigslist will be the place to do it. On Craigslist, the bargain is still very much alive and well if you’re willing to do a little work such as picking up your purchase as opposed to have it mailed to you.

For example, hockey equipment – a particular interest of mine – can be purchase for 75% below retail prices. For the most part, it’s relatively new equipment purchased by people who thought they were going to be playing but can’t anymore, or people who just want to sell extra equipment.

If the recession takes hold and the consumer orgy that has thrived for the past decade comes to an abrupt end, Craiglist is poised to thrive. You’ll have motivated buyers looking to save cash, and motivated sellers looking to “monetize” stuff they no longer want/need.

More: Other online companies that could benefit from the recession are:

- Kijiji, whose growth seems to have plateaued in the U.S.; Priceline, Hotwire.com, Skype and Paypal.com. It is interesting that Kijiji, Skype and Paypal are owned by eBay so perhaps this post should have been eBay will thrive during a recession.

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