Tags
auction, auctioneer, auctioneers, auctions, eBay, eBay to go, embedded, LiveAuctioneers, online, online-only
I believe it’s fair to say that eBay originated the online auction concept. AuctionWeb (soon after to be www.ebay.com) was opened for business September 5, 1995 and the first item sold via an online auction was a broken laser pointer for $14.83.
By 2007, upwards of $80,000 in goods and services sold on www.ebay.com every minute of every day. Today at various times just as much or more sells through a “Buy-it-now” format as does the competitive auction format.
More recently, many auctioneers have added online bidding to their live auctions, and others have chosen to offer exclusive online-only events, using third-party companies to either direct users to those external sites, or embed third-party solutions on their “auctioneer” websites.
eBay now has 100′s of millions of users (potential buyers) worldwide; almost no auctioneer uses eBay for his or her online-only auction software; a few companies today tie their listings to eBay and LiveAuctioneers started out in 2002 as an eBay-based platform.
Nevertheless, why do nearly all auctioneers not use eBay for their online-only auctions?
eBay is viewed as buyer-friendly in regard to disputes, and there is no way to direct potential buyers to a particular seller’s items (that auctioneer’s seller’s items.) As well, buyer premiums don’t fit well in eBay’s system, and shipping costs are strictly monitored. eBay also prohibits and/or restricts the sale of some items (firearms, real estate, slot machines, etc.)
By using customized software for auctioneers, auctioneers offer online-only events without having to use eBay, with embedded options, and more equitable and customizable terms for sellers and buyers.
At least, that’s the way it’s been up until now.
Take a look at this box below. This is a new (Beta) release from eBay called, “eBay To Go.” eBay To Go allows embedding of a certain seller’s items or certain search query results — one item, multiple items and even an eBay store’s items.
Here’s a sample search query result for “Bose Headphones.”
As can be seen here, any particular picture can be enlarged by mousing over it, and that particular item’s details can be viewed easily by clicking on any picture. Users can search for other items, and access a number of other choices (go ahead, try it out …)
In addition, there are different format options such as a text list, summary, single picture or the picture gallery above. Too, given this is in beta form, the final solution is likely to be even more enhanced.
eBay’s fees appear higher than those fees of auctioneer online-only software providers (as low as 9% to as high as 13%, with other options and fees.) But, the exposure is to a much larger audience.
If an auctioneer can list items on eBay and direct potential buyers to just those items, on the auctioneer’s website, and expose those items to possibly over 500 million potential bidders worldwide, why wouldn’t an auctioneer do that versus hosting their own online-only auction?
It would appear the folks at eBay wondered the same thing.
Mike Brandly, Auctioneer, CAI, AARE has been an auctioneer and certified appraiser for over 30 years. His company’s auctions are located at: Mike Brandly, Auctioneer, Keller Williams Auctions and Goodwill Columbus Car Auction. His Facebook page is: www.facebook.com/mbauctioneer. He serves as Adjunct Faculty at Columbus State Community College and is Executive Director of The Ohio Auction School.
Some comments and a question.
First, the above example featuring Bose Headphones is just blank white space on my ipad just like anything featured on “eBay To Go” will be for anyone using Apple computers, iPhones, or iPads. Why, because it is “Flash” based and Apple products will not recognize anything “Flash” based. My mistake for buying my first Apple device and not knowing they have this BUILT in DEFECT! However, many people use Apple products and you will fail to reach them with anything using “Flash” or “Java” technology. I am excluded from bidding in some auctioneers online events due to bidding software using Java.
Second, I’m not sure how you see “eBay To Go” working in conjunction with the exact same item being sold in an auctioneers own online auction? You may be able to list the item for sale on eBay without paying listing fees but you will certainly pay eBay “final value fees” if it sells on eBay. If it DOES sell on eBay, you CAN NOT then sell it on your own online or live auction as well. Is the intent is to list the item on eBay, with such a high opening bid that it will NOT sell, for the purpose of attracting attention to the same item on your own online or live auction where you earn the commission? If so, I would suggest eBay will consider you in violation of the “terms of use” they list for “eBay To Go” which state that the service can not be used for commercial gain. The way I see it, “eBay To Go” is just something they hope will cause the Facebook and social media crowd to tell their friends about things they might want to buy on eBay. With eBay being the only one to benefit financially.
On a more general note. I have watched with interest the growing number of local auctioneers going to the online only bidding format. I think much of this comes from seeing the success of eBay and the mistaken belief that all you have to do is put something on the Internet and it will sell for big money. I have for 6 years made most of my living selling on eBay, 6000+ transactions, most of it being items I have purchased at traditional live auctions, and recently some items purchased in online bidding local auctions. With the knowledge and effort I put into buying the right items and properly marketing them on eBay I average $10 in sales for every $1 spent. If simply having your item on the Internet were enough to get the true value out of it why can I cite specific examples of items I bought on local online auctions selling on eBay cleaned, properly identified and described with good photos, selling for 10 times what they did on the auctioneers online auction?
Auctioneers, whether online or live, traditionally sell items “as is, where is” / buyer beware! When I sell something on eBay I accept payment (and pay more fees) through PayPal. I accept responsibility for the the item being “as represented” and getting it to buyer in the same condition. If buyer for any reason is not happy with it I stand to lose not just the item, and what they paid for it, but also the cost of shipping it to them. People always underestimate what it takes to be successful on eBay. They want to get eBay prices for stuff without doing the work. I rarely sell anything for others on eBay because they don’t understand this and if I tell them I want 50% of the sale they think I’m ripping them off.
Please expand on how you see the “eBay effect” benefitting traditional auctioneers! The benefit is there, but I think it’s more along the lines of the benefit derived from the “pawn star picker / storage war auction hunter TV” effect that has huge crowds of new buyers showing up at local auctions spending money on junk hoping to cash in big. The money they are spending CAN’T be money they earned buying and selling collectables or they would know better. It makes me wonder if we are seeing the last crowd of investors getting in to the market just before the Ponzi scheme collapses.
I appreciate your thoughts. I’m not suggesting a simulcast auction, nor selling on eBay while also listed on any other site. What I see is eBay working it’s way into the online-only auctioneer’s domain — possibly.