Dustin,
I know eBay like Jeff Kershner knows eBay. We both were in eBay early, crushing the ball out of the park and watched it slowly fizzle out. I was a featured speaker for eBay Motors at NADA in 04. Here are my observations.
LOCATION:
eBay retail success needs Geography.
I see regional eBay "hot spots" like Texas and Florida.
I see proximity to a mega-city as another Hot Spot.
I get the Florida/eBay/vacation marketing connection.
Why Texas? Texas stands out so strongly above all other states that it puzzles me to this day. I award this phenom to Texas Culture. ..." Texas can make it without the United States, but the United States can't make it without Texas."
AD DOLLAR PER CAPITA
eBay’s rates are the same whether you are in Idaho or in Philly. So, it's easy to see that eBay success and Mega-City proximity are directly related. If your store is within an hour's drive of a major city, your eBay ads have extra value to a searcher that discovers you are "local". A great business model I frequently see is exactly what Jeff K. was referring to. I frequently see a small, friendly dealer (usually an independent) near a major market that specializes in something.
SALES SKILLS:
eBay sales are telephone driven. Who ever takes that call has to demonstrate AUTHORITY over the product and the process. This is the secret weapon of eBay sales. This is why small independents succeed and this is why Texas Direct has a rep assigned to the unit.