Auctionbrokers Australia, the largest seller of goods on eBay Australia, has decided to close its virtual doors to concentrate on fixed price sales.
The site has sold 300,000 items, worth $40 million, since inception in 2000. Many large organisations have used the service to sell excess stock or inventory.
The company claims it was the first to introduce the $1 no reserve auction method to eBay.
However, co-founder Paul Greenberg said the novelty value of online auctions was wearing off for many as e-commerce developed.
"We've gone from being eBay's largest seller in Australia to about their smallest," he told ZDNet Australia.
"In the practical areas of consumer electronics or home entertainment ... auctions are becoming less and less relevant."
The company launched a fixed price, discount shopping site, DealsDirect, in 2004.
"The fixed price concept succeeded beyond our wildest dreams and began out-selling Auctionbrokers within 12 months of operation," he said.
Auctionbrokers would be redeveloped on the fixed price model, probably using eBay's buy it now format, according to Greenberg.