I noticed that localy auction sites very often failed. Why is that so ? In my opinion auction sites show how much item realy worth but it doesnt explain local inefficiency.
Part of the problem with local auction sites (at least in my area) is that there's too much competition around for consumers to look at. As a result, its hard to create a buzz about your site and get the traffic necessary to attract both buyers and sellers. Obviously the biggest competition for an auction site of any sort is eBay. One can visit the site and get pretty much anything they want at decent prices. Yes, its not local but it does offer a huge selection of products and in most cases excellent pricing. Non-auction competition include classified sites. In my area we have Craigslist, Kijiji in addition to a couple local community newspapers. Additionally there are several local Facebook classified groups (Mom Swaps, community garage sales, etc) in addition to some local auction sites. In a nutshell, you'd have to have a pretty killer marketing plan and budget to get consumer's attention in this market.
in my town, people are very reluctant in buying things from auction sites. i personally fear buying an item that is not legitimate, others are stolen items from the estate and also most people don't prefer second hand items. remember that "cheap might be very expensive in the long run"