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Enter the Zappos Sharing Happiness $3,000 Shopping Spree Giveaway Contest
Yep, there's a huge economy around eBay - probably much bigger (and definitely more profitable) than the one that's building on top of MySpace. Widgets haven't been a huge hit, though - auction tools, automated bidding etc seem to be more popular (eg. Andale).
A few of the widget startups began by targeting eBay (Slide, for instance), but quickly moved over to MySpace when they realized the demand was higher.