• TechCrunch, Tuesday, August 7, 2007 10:32 AM

Buy.com has thrown its hat in Facebook's ever-expanding ring of third-party applications and services with a new program called Garage Sale, which allows users to sell directly to their friends. Buy.com will charge a flat 5% commission on completed sales, which excludes PayPal and other fees. Garage Sale isn't the only Facebook app to facilitate ecommerce between friends; Mosoma is another one.

Is a closed network a better way to sell items? Presumably, the people viewing your listing are friends you know and trust, thus eliminating the need for a feedback system like eBay's. But a report says that a closed system doesn't work so well in practice. For the casual seller, it might be an OK way to get rid of a few items, but there simply isn't enough scale to justify friend-to-friend commerce.

Also, for buyers, eBay will always be the most likely place to find items of interest. Small networks inevitably have a limited inventory. And with so many sellers of similar products on eBay, the price is also likely to be lower. That's why Garage Sale and Mosoma will fall short of expectations.

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