I'd much rather see an Auction House. Easier for the folks that don't play on regular hours to still have access to better stuff.
If it were me, I'd go MMO style and put the vendors and auction house an storage all in the relative same location. Make it look like a busy ass bazaar, with Npcs's running around doing their thing, too.
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Would a type of "Grand Exchange" be suitable? I take this idea from Rune Scape that I used to play (I know why would I even consider spending time on that game, but I loved it at the time). Someone can search for the item just by name but they do not see the quantity available just the market price of that item and if they are able and willing to pay for the item they can purchase it. The item will be purchased on availability. The buyer never has to worry about sniped auctions and people who wish to flip items can still read the market and use it to increase their credit stash.