I believe a well run reptile auction site, done properly, has the potential to make money, and would be used by many once it was established.
So far though, there has never been such a site started that meets that description.
Confirmed age and identity needs to be the first rule of posting. Many of these auctions are, for all intents and purposes, posted by anonymous individuals, and a good portion of them by kids.
Anyone under 18 cannot enter into a legally binding contract, so kids can't be allowed to buy or sell on the site. One of the sites I was checking yesterday actually states this, but it is dependant on the honesty of the poster.
It will also require alot of effort form the person(s) operating the site to maintain control and reduce the potential for scams.
Another aspect that would have to be addressed is the method of posting the auctions. Many people use it just like a classified ad, stating they will be willing to trade the animal for sale, or editing the auction before it closes stating it is sold. The latter was always a problem with HerpAuction. It has to be an auction only until the time is up. If they want to trade, to sell it early, then an auction is not the proper place.
The advertising budget for the first year would have to be large just to get the traffic going. The reptile community is quite small as compared to the potential customer base of Ebay, and an auction site with 50 regular users isn't going to fly.
As it stands now, from my perspective, there's no incentive at all for me to put an animal up for auction at either site. The traffic is low as are the potential bidders. There is also the continuous problem of non paying bidders.
There is also no incentive at all for me to bid on any auctions. The sellers are more often than not completely anonymous, and many of the ads are just plain suspicious.
Regardless of your opinion of Ebay, it is a well designed system, and it works. All of the reptile auction sites so far have been little more than playgrounds for unsupervised children.
I buy things regularly from ebay from all over the country from people I will never know and will likely never hear from again. I am for the most part secure in these transactions, and rarely worry about getting burned. I can't say the same for any of the reptile auction sites in existance.
Dealing with live animals raises the stakes, and gives all the more reason for a tightly controlled environment.
It wouldn't be an easy endeavor, especially for the first year or so, but I do believe it has potential. there's definately no competition right now should a well done auction site be started.