posted on September 14, 2001 08:41:57 AM new
Hi folks:
I am the former owner of Snuze.com. Although who we sold to allowed the site to die off, we felt that Snuze was beginning to build up a nice community in the short time it was up. However, we also understood that it would take money to build up a successful business and that we didn't have. We believed that selling would give Snuze.com the opportunity to continue to grow. Instead, they just allowed it to completely die off.
So my question to you is the following. If you were to start a new auction site, what would you implement to the site that you feel would give it a chance to succeed? What are the most essential and important aspects to you? How would you begin to lure buyers and sellers to the site? What incentives would you offer?
These are just some of the many question that I think can help begin this thread. Post any other question and answers that you may have.
Thanks! Hopefully that dream auction site can come into existance.
[ edited by balmonte on Sep 14, 2001 10:57 AM ]
posted on September 14, 2001 09:12:13 AM new
I feel that an auction site that charged ONLY final Value fees could be a Great success - even if the final value fees were as high as 10%. Most sellers do not mind a percentage (even a high one) if their irems are selling. It is the listing, image hosting and other fes that are charged even when items do not sell that is the main listing complaint.
I feel anyone that would start an auction site using ONLY Final Value Fees would certainly be a success. The problem now is TRUST. Many sites have promised NO FEES EVER and then used excuses to start charging fees after sellers had invested much money and time in the site.
posted on September 14, 2001 09:50:27 AM new
I would try to copy the very successful eBay model as much as possible while staying away from listing fees if possible. I would try to maintain two venues on my sites, an auction venue and a fixed price venue. On the auction venue I would have a minimum FVF of 25 cents or 7% whichever were greater. This action would force the very low end items onto my fixed price venue with a 15% FVF and no minimum ( 15% of a $1 = .15 )
There would be very little profit in the fixed price venue but it would bring some traffic to the site.
I would also model my chat areas after Carnaby and have firm control of the message boards.
I would try to lure major sellers initially to the site with 'sweetheart deals' that would be hard to resist. Attracting buyers is always the most difficult task and it really has me stymied. The need to control scams and deadbeats is the major problem and a verification system that is identical to eBay is a must.
That's some ideas off the top of my head.
posted on September 14, 2001 10:24:17 AM new
I would be in hopes that they did not even encourage sellers - but rather auctioneers.
Storefronts have done little or no business, even on eBay!
I also see little or NO need of advertising for auctioneers, because any auctioneer worth his salt will find the place but advertise for Buyers. Once a site has buyers, then the auctioneers will definately come.
Once a new site starts up auctioneers will try a few of their best items without any need to ask them.
posted on September 14, 2001 11:18:40 AM new
A major seller or auctioneer would be someone that posted at least a thousand auctions on the site and maintained that level monthly. Another level with more enticements could be for sellers/auctioneers at the 2, 3, 4, & 5 thousand level.
Half.com opened with a 2 million item inventory and they had to have made some sweetheart deals to get that number.
posted on September 15, 2001 12:18:23 PM new
I have to agree with BobAlberti on that one. And I don't even think it could be limited to number of items or Value. It would need to be proven by a verififiable history of sales. In other words - a bad idea in my opinion. As a matter-of-fact, check out these high volume sellers on eBay - many go out of business in a very short time because they do not have the items they list and do not have time to leave return feedback. JC Penny's is a pretty good example. They were there for only about a month. The last I knew they there were no more listings at all by them. I could be wrong - but I don't think so.
posted on September 15, 2001 12:28:44 PM new
This is a great question, one which I am happy you asked. You have to sift a lot of sand to find a grain of gold, but there will certainly be some good points made in this thread.
My first priority would be to capitalize on ebays weaknesses, and there are many. First I would name the auction with a name that denoted honesty, since so many buyers have been burned on ebay and might want to try a site where fair dealing is paramount.
Which comes to the policies of the site itself, in which shilling, bid shielding and the like would be almost impossible; where deadbeats would get whacked after two failures to pay; where sellers with poor fulfillment practices or deceptive ads would be naru'd quickly.
I would pick a couple of categories which produce significant revenues and offer key sellers free listings for the first 6 months, and provide them with an easy to use uploading program which enabled them to transfer item descriptions seamlessly. I would also pick a couple of categories ebay does not do a good job with and do the same thing.
I would do a completely new version of the power seller program, based on customer satisfaction and service rather than any sort of "power" or macho posturing nonsense.
I would pay sellers for BUYER referrals to the new site. If a new buyer signed up through a link, they would get say $1 per bidder, and $2 if a transaction was completed within 30 days by this bidder.
Most of us would love to see another auction grow, but are reluctant to dive in and send our customers to a new service. This referral fee would dissolve the resistance and get the buyers signing up. And what will the buyers get? Perhaps something in the mail like a thank you gift from the auciton site itself. It would be something that would mail for 34 cents postage, would remind them to visit the auciton site, and with an address correction requested, could serve as an address confirmation. You can buy promotional items cheap and it could be tied to a "founders club", giving the early users a sense of ownership.
I could go on and on, but there is so much more to consider.
Oh yes, for those sellers who want to use the auction as a way of building traffic to their website, just charge a fee for the hot link in the auction description, rather than banning them. Conversely, be willing to trade links from sellers web sites. Keep traffic moving within the family.
posted on September 21, 2001 09:33:31 AM new
"I would try to lure major sellers initially to the site with 'sweetheart deals' that would be hard to resist"
Maybe BV read my post here and sought out a new mega-seller for their site?
posted on September 21, 2001 09:48:32 AM new
bidsbids,
Very plausible.
Consider this.
Bidville created the Books Storefront categories to which only one seller has access.
The Bidville Dumper, errrrr, Loader does not have the Books Storefront categories, therefore it seems likely that Bidville itself is uploading the listings from a seller-supplied database.
The seller is adding a 10% commission to the "Take It Now" prices in the listings, so there may well be a commission-sharing arrangement.
And never mind that the sellers auction terms conflict with the Bidville user agreement and state statutes regarding auctions sales.
posted on September 21, 2001 06:13:59 PM new
I would consider sell through rate as more important than dollar amount. Also hits, this shows that they have items that bring in customers. Low value goods are great for any "store", they get people in the door. None of the dealers will benefit if people do not find the site. What you really need is a good mix of high dollar goods & cheap stuff(& everything in the middle).
posted on September 21, 2001 07:09:56 PM new
"A major seller or auctioneer would be someone that posted at least a thousand auctions on the site and maintained that level monthly"
This in my opinion is what has hurt ebay (that and the blind greed). Ebay used to be the place you went to find that hard to find item, now they cater to the people that sell thousands of dollars worth of bubble envelopes. The "buy it now" has not helped either. I would love to know what those sellers that list 1000 auctions each month are selling, is it stuff I can buy at walmart or is it that crap I see people trying to sell at flea markets?
The one thing an auction site should be is honest. Nothing is "free forever", why lie? Offer a good service at a fair value, treat everyone the same and people will come. I use half (15% FVF) and love it because I pay NOTHING unless the item sells AND they have the traffic...
[ edited by wlaschin on Sep 21, 2001 07:12 PM ]
posted on September 21, 2001 08:49:15 PM new
I think eBay wants desperately to return to the good old days of an actual auction site. That is why the bought Half.com and they are doing everything they can to get common items onto that fixed-price venue. I think it would help to have a minimum start bid of at least $3 to $5 to get the very low end items off of the auction site. Slowly but surely the eBay buyers are learning to use Half.com to get their non-rare books and other common items. eBay is truly enjoying "the best of both worlds" now.
