Weak dollar helping some Web businesses

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Bruhn’s and Jewett’s international sales as a percentage of total sales has risen from about 1.5 percent last year to about 5 percent this year, as bidders from the United Kingdom, Germany, New Zealand and other countries snap up such popular items as German war pins, collectible miniature cottages, Palm Pilots and $500 bundles of old reggae records.

When they started the operation in 2004, Jewett said, “we joked about the fact that even if the economy tanked, we could do OK by shipping stuff overseas.”

Now he’s seen more locals dropping their belongings off, he said, as the housing market slumps. If the item is anything over $500, there’s a 25 percent chance it’s being sent to another country, Jewett said.

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American bidders still make up the majority of eBay sales, but the portion of foreign bidders of U.S. goods is growing. Spokeswoman Kim Rubey said U.S. exports to other countries through its auction site have increased 30 percent year over year. That’s been fueled particularly by exports to the United Kingdom, which have increased 50 percent year over year, and to Australia, which have jumped 60 percent.

Of course, exchange rates aren’t the only driver. According to David Garrity, director of research at advisory Dinosaur Securities LLC, better broadband Internet access in other countries is another contributing factor.

David Kohler, president and CEO of the California-based sports memorabilia auction site SCP Auctions, said he’s not sure if it’s the dollar’s doing, “but there’s definitely more of a foreign presence than a year ago and than the year prior.”

SCP’s last auction, which sold about $3.4 million in items including the baseball Barry Bonds hit to break Hank Aaron’s home run record, saw an uptick in interest from bidders in the United Kingdom and Japan, as well as Canada. “They love the hockey up there,” Kohler said.

For low-ticket items being sold on the Web, exchange rates don’t make a huge difference, and instead serves as an offset to shipping and handling charges. It isn’t the main reason Shelley Stacey, from Toronto, bids on U.S. items on eBay. She buys mainly clothing and books.

“I’m not one to sit on the highway and go to Buffalo to go shopping,” she said.

But, she added, it’s a nice bonus when she sees the bill for a pair of jeans. The Canadian dollar is now $1.03 — a year ago, it was worth 89 U.S. cents, and five years ago it was worth 64 U.S. cents.

“I would buy it anyway, but it’s pretty cool that it’s basically the same price as Canadian,” said the 32-year-old, who works at a film production company. “I can imagine people who are spending thousands of dollars, the savings they’re getting.”

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