Web classifieds rise point to consumer bargain-hunt

By Michele Gershberg

NEW YORK (Reuters) - Used goods are finding a new life on U.S. classified sites, as a growing number of consumers wary of a weaker economy search for bargains online, according to data from eBay Inc's Kijiji.com.

While not an official benchmark of consumer sentiment, activity on the site points to accelerated interest among consumers to find better values for their most expensive purchases in a period of steadily rising fuel and food prices.

Others are using the free classifieds site to pocket extra cash by cleaning out their cache of possessions, or to offer novel services to supplement their income.

For example, listings for motorcycles and bicycles have grown nearly 300 percent on the free site since January, compared with overall 60 percent growth for its wider "Cars & Vehicles" category in that time.

A spike of the same magnitude occurred in ads for cameras, phones and computers versus 80 percent overall growth of general "For Sale" items, Kijiji.com executives told Reuters.

"We've been growing quickly as a site, but 300 percent really pops out," said Martin Herbst, general manager of Kijiji.com, adding that consumers may be selling higher-value goods first as they try to clear out what they don't need.

"The idea being, if I want to get extra cash in my pocket, I will get more from a Yamaha bike" than smaller-ticket items, Herbst said.

The rate of reply to the ads is also telling, with motorcycle and bike listings seeking a 200 percent surge in responses since January. Replies to ads informing users of local garage sales have also quadrupled in that time.