In a bad omen for “Facebook commerce,” executives at Yardsellr announced last week they would be shutting down operations within 60 days, according to TechCrunch. The decision is clearly based on dissapointing revenues in the still-nascent field of hyper-local commerce, although the founders — a trio of former eBay executives — say they will be ramping up a new B2B business, CompoundM, to sell software and strategies to small e-commerce sites who wanted to “borrow the playbook” of Yardsellr.
Let’s hope they at least revise some of the plays before selling a losing playbook.
Yardsellr, along with Etsy, was one of the hottest social commerce sites of the past few years, with more than 5 million users at its peak — although less than 0.035% of users were active on the site each month. The site was also notable for “gamifying” the shopping experience, and also kept its own virtual currency, “Photons.”
The shutdown is the latest blow against the “hyperlocal” social movement. Other hyperlocal businesses recently shuttered include EveryBlock — a neighborhood journalism platform — and Done.com, for communicating with neighbors.