(Photo courtesy of Steve Heinz)

Gregg Hensler figures he’s spent $7,000 on equipment and tools on eBay and saved $5,000 in the process. Same with Holly Pinner, who’s spent $20,000 for what would have cost $70,000 new. Pinner paid $3,800 for a skid loader and, even with overhauling it, she says, "I probably saved $10,000." Hensler owns Hensler Construction and Excavating, Greentown, Ind.; Pinner and her husband Randy own HRC, a specialty concrete construction firm in Sanger, Texas.

Construction is now eBay’s fastest-growing category, says Jordan Glazier, who’s in charge of San Jose, Calif.-based eBay’s business-to-business (B2B) sector. Construction is up 220% in first quarter 2003 over first quarter 2002, he notes. Annual sales of equipment alone are expected to be $50 million, tools close to $100 million. Most B2B activity involves small businesses and most people have already been shopping on eBay for their own personal interests. "It's often the same checkbook, same tax return, same wallet," he says. Hensler started out shopping for a guitar for his nephew and "I got [to] scrolling through," he says, and ended up at one point spending $5,900 for a $9,000 skid steer. "I did have to put some money into it—I bought it as is—but it was a real good deal. It saved me $3,000 to $4,000 anyway."

eBay's Jordan Glazier (Photo by Judy Schriener)

eBay is best known for its vast array of collectibles, but they now make up just 20% to 30% of its volume. In the construction category, light equipment, tools and light building materials are most common. "You won’t see a lot of drywall," says Glazier. "If I know I want something, if I hang out long enough on eBay, it's going to show up," says Pinner.

Forester Moulding & Lumber Inc., Leominster, Mass., gets rid of overstock or mistakes—such as the wrong wood or size—on eBay. "When you put it on eBay, you really get a lot of replies," says owner Bill Mischel. Some of it is a real bargain. They recently sold about $1,000 worth of premium dental moulding—enough for one or two rooms—for $100, he says. Shipments usually go via FedEx or UPS. "If we have [too much] for one package, we just make two packages," he says. "The length is usually more of a problem."

Mike and Katy Lambert, co-owners of M&D Truck and Equipment, Monroe, Wis., Sell everything from lawnmowers to backhoes on eBay, ranging from $2,000 to $12,000. "A trencher backhoe started at $25 and ended at $6,600," says Mike. Common items may reach their peak bids days before the end of the sale but unique or hard to find items can get pretty exciting during the last five minutes. "It's another marketplace you wouldn't find normally....90% of what we sell is shipped farther than 200 miles."

Veteran eBay buyers and sellers have their own tricks. Accurate descriptions and pictures are important, says Mike Lambert, who estimates that M&D has sold 2,000 items on eBay. "I've never had a problem [with a seller]; I always try to read the feedback" on each seller, says Pinner. "Try not to bid until the very last minute...and then put in the maximum you can spend because you only have one shot," she urges. People aggravate her when they don't wait to bid until right before the end. "A new item will be listed and people start hitting it with bids, and they've already driven it up." She recently wanted a particular concrete saw. She waited until one minute before the auction closed, when the bid was $370. Other eBay-savvy bidders did the same thing, entering their bids virtually all at once. She entered $451.13 and "that 13 cents got that item for me."