posted on February 27, 2001 04:11:05 PM new1. Where do you see the small auctions sites in 12 months. Considering the perception that some users seem to feel that there is no need for small auction sites.
As long as there are improvements to be made in product features and customer service, there will be new companies trying to provide them, and this is true of auctions as well as every other business.
Our industry is very new; we've only seen the tip of the iceberg. In another year's time our industry will undergo drastic changes. The increasing acceptance of broadband and XML, changes in collecting habits, the economic shakeout--all these factors and more will continue to have immense effects on our industry.
2. Do you feel that in the future there will be mergers between small auction sites.
We think it's unlikely to be a good strategy, since the only real benefit to be gained is likely to be in the economies of scale connected with shared hosting and management costs; and there is great risk involved in the attempt to make two management cultures into one.
3. One of the complaints that some users give is the problem with overseas transactions. How should auction sites protect users on both sides of the issue.
As I understand it, the essential problems are largely to do with banking regulations (exorbitant exchange rates from credit card companies, difficulty in finding efficient, low-priced, guaranteed payment systems, problems depositing different types of instruments, etc.) Auction sites so far have had limited influence in this area.
The most we can do now is to give the best information we can find to both sides. We do have a number of international sellers and have worked with them to help make their transactions go more smoothly. We are certainly keeping an ear to the ground for the latest and best payment services, escrow companies and the like.
4. What would you as the owner look for when choosing a site to bid and sell on. Please be non-promotional.
As a seller: Sales! A high level of bidding activity is the main thing, almost the sole thing, that attracts me as a seller. I don't care how much traffic the site has as a whole, or how many other auctions are hosted there; I just want to know that I have a good shot at selling my own stuff. How many real potential bidders will click through?? Will there be deadbeats, or will I enjoy successful transactions?
As a buyer, on any commercial website I personally like a company that just lets me conduct my transactions in peace. The less passwords, forms, codes, screens and security, the better. As a buyer, I also like anything that saves time and trouble, such as 1-click or Paypal services, automatic notifications, sellers who take the extra trouble to keep me informed of new stuff they have that I might like, and so on.
Many thanks, Bill, for the continued opportunity to participate. I think your open forum is a great idea, and I'm really enjoying it.
posted on February 27, 2001 04:51:21 PM new
Hello All
I would like to address Jamie's topic on, should we protect the user on international orders. We believe that this will be one of the most crucial areas of internet business in the very near future. At Usauctions.com we have a whole department set up to deal with both this problem and the problem of fraudulent credit card transactions. To succeed in the long run, we believe that we must address any problems with international trade. Remember, This is the "World Wide Web" and mark my words we will all be looking abroad for business before to long.
Both Of these problems can be solved easily it does take a little time and is some inconvienence to international customers but, we have found that legitimate customers realize that we are not only protecting ourselves but them as well. If they do not understand then I would question thier motives.
With international orders: As a buyer we advise the customer to pay by credit card only. This way, if the transaction is fraudulent then a chargeback is possible,C.O.D.,or an escrow service is also a possibility ( although a pain in the A?? ). The credit card is the strongest and quickest tool a consumer can use on the internet. It can also be a very powerful tool for thieves merchants should always be on the look out for fraudulent activities.
This next issue while not addressed in jamie's letter is a issue that we feel is very important to merchants everywhere. ( I hope every merchant out there realizes by now that your credit card company is not your friend or your partner, If not learn this lesson fast, look for signs of fraud before you run the card and ship the product. the card company WILL NOT back you up.)
International Credit card orders: We have devised a system that works very well for international credit card transactions. It is also very simple and only inconvienences the buyer the first time they purchase a product. We very simply ask the buyer to fax (or e-mail a scannned document) to us of their Identification, their Credit card back and front and a signed Declaration, That that in a nutshell gives us authorization to charge that customers credit card for any purchases made now or in the future for purchases made at usauctions.com. All you have to do is match the signitures and keep it on file. The customers like this becuase they only have to do it one time( unless they update thier credit card info) You can customize the form any way you like for some marketing iformation or advertising etc. This document will cover you with a minimal of trouble when dealing with american express or discover chargebacks. Visa and mastercard, Well I am sure you know by now that they do not care about merchants at all and will give the money back to the customer everytime no matter what, if the customer persist in the claim. Luckily most consumers (even the thieves) don't realize this and give up after you show this proof to the credit card company.
Good Luck To You All in your online ventures-- Don't give up this is still just the beginning. Spectacular things are yet to come --
Thank For listening:
USAuctions.com
posted on February 27, 2001 09:46:52 PM new
Hello again from down under! It's great to see everyone's comments in this thread, and there have been some great issues and ideas that have been brought up. I'd like to respond to Bill's latest questions from the perspective of Stuff.com.au and also as an enthusiastic auction user.
1."Where do you see the small auctions sites in 12 months." I think small auction sites will still be around by the end of next year, but there'll be fewer of them. The ones that survive will be the ones who effectively meet the needs of a niche interest group or a specific community. These will also be the sites that run their operations sensibly, avoiding the classic business mistakes of the dot coms. I also think that there could be the development of some excellent technology innovations that could benefit all auction sites, but that's a topic for another thread!
2. "Do you feel that in the future there will be mergers between small auction sites." From an Australian perspective, I think the smaller sites that struggle will probably cease to exist. Merger is only an effective solution if both parties have mutually beneficial services or assets. There's many small sites that are similar in the way they do business and the market they target. In this case, 1+1 still equals 1. If we see many mergers, it'll be a predatory version.
3. "....overseas transactions". Our site is almost exclusively all Australian based, so I wouldn't be able to address this issue as well as some of the others. However, the technical and legal issues are quite daunting. The cost of supporting overseas transactions is very prohibitive and I'm doubtful if any amount of preventative means would lessen the risk for buyers and sellers.
4. "What would you as the owner look for when choosing a site to bid and sell on?" This is the toughest question to avoid being too self-boosterish! Here are a few things to consider: Is the user base of the site close to the demographic that would buy my items? Similarly, are the sellers selling the things I'm looking for? How large is the member base? Quality of members is important, but if there's only 5 of them in total... How user-friendly is the site's interface and design? Does customer service respond in an appropriate amount of time with a meaningful & relevant response? What is the site's long term business plan and how are they executing it? As someone mentioned earlier, is the business spending money it doesn't have, or is it spending responsibly? Is the site dedicated to auctions, or is it a tack-on to attract more visitors? What is the site's policy towards issues such as fraud and privacy? Is the site charging unreasonable fees?
posted on March 2, 2001 01:54:44 PM new
Well time to bump the thread to the top. Don't want to get lost!
Question to the owners:
In the last couple of years the users have become more vocal in what they view as a viable auction site, How do you view the vocal Users?
The number of sites increasing on a daily basis and the number users being vocal and opinionate, The new sites trying to fill the void that the established sites aren't filling how do you plan to fill that void and let the users know that you are filling that void?
Are listing services a hindrance or help?
Would an Association for the Auction Sites be helpful in dealing with the common problems and dealing with the public, pr, (you name it) etc?
Should there be a standard developed by the auction sites that is a code of ethics that would be across the board for all sites. I think that it can happen, just thinking of a standardization that would keep the Goverment out of the hair of the owners, sellers, and buyers. Sort of a shield that protects all.
Edited to add my own opinion!
Remember the day will come!
Those that self govern and do it with a group I would think would carry more weight when the time does come for regulation by the Government. To me it would show organization, recognition of special problems of doing business on the internet, how to handle compaints, safeguards, how to deal with legislation, etc. Remember there are quiet a few Auction sites out there and it only takes a few to upset the apple cart. Perhaps this would be helpful to all. Like the various self governing bodies: AMA etc.
Opinions? (let remember this is not site specific but general in nature!)
Bill (elecdata1 here and everywhere else)
[ edited by elecdata1 on Mar 2, 2001 02:08 PM ]
posted on March 3, 2001 09:30:03 AM new
I think this topic would be better served on the newsgroups or another forum without AW's censorship.
I hope the owners of these alternative sites and the sellers who list on them recognize AW for what it is and will consider this before offering any support to this site in the future.
posted on March 3, 2001 09:59:25 AM new
Well this is interesting, but I certinly would like the thread to stay on topic, it is a serious thread and one worth reading, So Delphy you have anything to offer up to the questions posed please do.. There has been no censorship by anyone on this thread, other than my posts requesting that folks adhere to the originating questions and those that followed. Another words staying on topic!
posted on March 3, 2001 10:12:04 AM new
Now that was just a clever post, Why not start your own thread and post there? I'm certainly not interested in seeing it here.
posted on March 3, 2001 11:24:49 AM new
OOpppssss....It appears that I was too slow in responding. Thanks Moderator.
Take your concerns to moderator corner or do your own thread, this is an important and useful thread that certainly doesn't need to be off topic. This thread was started so that folks could gain insight into the a variety of auction sites, and the concerns of what is in store for them now and in the future, not to be a spring board for those that have an ax to grind with AW. If you have a concern about my post then make a complaint to the moderators, otherwise lets stay with the topic.
Bill (elecdata1 here and everywhere else)
[ edited by elecdata1 on Mar 3, 2001 11:27 AM ]
posted on March 4, 2001 08:19:38 PM new
Dutchbid touched on this briefly, but my question to all the auction sites is this:
How can you make yourself a TRUE auction site rather than a "classified" site?
There are so very few items listed at truly bargain prices because I know the sellers are expecting only one bid. How can a NEW site overcome this?
I realize that on ebay one can start at a penny and know that because there are so many bidders there, the market price will usually prevail. Not so with the newbies. I believe that it will take some bargain prices for a new site to get popular, but how can you bring this about?.
I always thought the BIN feature at ebay was a step in the wrong "auction" direction.
posted on March 4, 2001 09:16:49 PM new
In my opinion, free sites and commission-only sites do not work because there are no economic forces on sellers to sell their items.
One reason eBay has become a liquidation sale (I believe) is that many sellers are dependent on their eBay income, and as eBay ratchets up fees, sellers have no choice but to sell at lower prices. To meet their stated revenue/profit increases, which are very aggressive, eBay will have to continue to put more pressure on sellers - maybe even buyers with the buyer's premium that they have toyed with in GC.
I believe that in the coming months, many sellers will realize that they cannot make a living by selling items at such huge discounts. There have been more than a few posts about selling items for less at auction than they cost in the first place (one I just read was 50% below what the items cost). It makes no business sense, and even sellers without good judgement will have to stop because they will run out of money.
Sellers will be forced to try other sites that have more seller-friendly fees. This is the reason we are eliminating commission from our fee structure; we have very low operating overhead and can afford to eliminate commission if it attracts more sellers. Smaller sites have an advantage over larger sites in that they can respond quicker to changing market conditions and have more modest financial goals than huge public companies or VC-backed firms.
I didn't answer the question of how a new site gets over the hump of not enough traffic to justify listing fees, yet sites without listing fees generally do not do all that well (from the buyer's point of view). I'm glad we're finally over this hump (after 3 years) and wish the others well.
Thanks for offering this thread. It's so good to see Reyne posting as well as John from tbay.
There are more sites out there that may want to get in on this. Try epier and edeals.
We can all learn from each other and it's certainly interesting to see how each thinks a site should be run.
I'm a big advocate of user verification, however, I don't believe the credit card is the way to go. Too many folks don't want to put their cards online and too many have access to cards that aren't their own. Address verification is fine if it's not a mailbox, etc. address. A P.O. Box from the post office is fine, but a street address is better. However, taking into consideration that a person can move readily these days, sometimes that doesn't always work.
eBay's UV through Equifax was a bust. Too many power sellers were turned down because they didn't have active loans.
I say limit the number of bids a person can place until they reach a positive feedback of at least 5. I can't say 10 because a lot of people are negligent in leaving feedback and no one likes to beg for it. I've seen too many bidders go overboard because of the excitement of bidding - thrill bidding is what I like to call it. When it comes time to pay the piper, they just don't have the funds.
Deadbeat bidders as well as sellers have to be dealt with promptly. Everyone makes mistakes and I believe they should be given some time to rectify it. But to go on and on for 30 days or more without a response or "the check's in the mail" or "I mailed it - must be lost" type of deal - just doesn't cut it.
Hiding e-mail addresses is just absurd!
Being able to contact a bidder/seller via telephone is essential.
I don't care for the sites that act as go-betweens as far as placing the phone calls. I want to hear the other person's reaction, hear what they have to say and be able to judge for myself.
Recently there was a situation on one of the sites not mentioned here where a seller had alot of negative feedback for being a deadbeat seller on another site.
I brought it to the attention of the PTB myself in a phone call. I was pooh-poohed. Turns out the guy is a deadbeat seller, took everyone's money, etc. When the site contacted him after 2 months, they bought the guy's excuse that he was "re-wiring his house."
Yes, with other people's money! He finally paid everyone back, but the point is, he took their money and gave them nothing in return for 2 months; the bidders were helpless, had no phone to contact him. They had to rely on the support person to call. The particular support person who did call was the one who dismissed my comments in the beginning.
You know I can go on and on, Bill. I can write volumes on this!
Thanks again for posting this thread. Good to see you back in action!
posted on March 7, 2001 05:04:19 AM new
Thanks for the comments Lynne! I emailed over 100+ sites and those that were interested in posting have. I suppose that some will continue to read and may post in the future and I do hope that they will!
posted on March 7, 2001 04:16:08 PM new
Thanks DadnMom! But the real folks that should be thanked should be the site owners for coming here and speaking out about their sites, and insites!
Let's bump this back up to the top, and get some more input......Said it before to you, it is a good thread, and I know you from another site, and happen to know you are a sweet person, who never ever seeks confrontation.
This thread has been an opportunity to read about dufferent sites, hear what they have to offer. YES, it is great that AW has presented this forum which has not been censored, so we might all hear what different owners have to say. Thumbs Up to you, Bill.
posted on March 11, 2001 01:23:43 PM new
Hello all,
Much enjoyed the new posts. Thanks again for this thread, Bill!
Regarding coinsunlimited's questions: each seller has a different style of doing business, and it's our goal to develop a system that brings the most buyers to the group as a whole. For instance, we have a lot of dealers in rare books on our site; auctions are often used by brick-and-mortar booksellers for liquidations. Others use the auction as a primary revenue source. We try to serve the needs of both selling styles.
Generally speaking, though, we find that the rarer the merchandise, the better it is liable to do at auction. When the prospective buyers for an item are very few, fewer than could be found in the average city, it's better to take it online where there is a good chance of finding that unusual buyer you seek. So I feel that the merchandise itself is the main determinant of a good auction strategy.
I don't like Buy It Now, though I do love fixed-price sites where you can just place an order. I think it takes a lot of the fun out of auctions--it is a serious bummer when you're all excited to see something, and it's already been bought!
To answer Bill's questions:
In the last couple of years the users have become more vocal in what they view as a viable auction site, how do you view the vocal Users?
We value and respect the opinions of the many professionals we have met through this forum and others like it. We have always kept in close touch with our sellers and welcomed their input. I personally am a vocal type, actually, so I tend to get on very well with 'squeaky wheels.'
[i]The number of sites increasing on a daily basis and the number users being vocal and opinionate, The new sites trying to fill the void that the established sites aren't filling how do you plan to fill that void and
let the users know that you are filling that void?[/i]
If I understand correctly-Popula's goal is to help dealers make money. Our general policy of management is very open and non-restrictive. Another goal is to keep the site costs to dealers very low, by keeping things simple.
Popula's user base is growing at around 10% per month right now. So our marketing and PR efforts seem to be working well. Slow, steady growth on both the buying and selling sides is what we are working to achieve.
Are listing services a hindrance or help?
We feel that anything that helps dealers succeed is a good thing for everyone, including Popula.
Would an Association for the Auction Sites be helpful in dealing with the common problems and dealing with the public, pr, (you name it) etc?
I belong to a number of professional associations. There are pros and cons to them … it takes a lot of time and money to manage the association itself, and they're hard to get off the ground. Once established, though, active members can really get a lot out of them. It's the establishment that is the tough part. You really need good and active PR to get the ball rolling.
[i]Should there be a standard developed by the auction sites that is a code of ethics that would be across the board for all sites. I think that it can happen, just thinking of a standardization that would keep the
Goverment out of the hair of the owners, sellers, and buyers. Sort of a shield that protects all.[/i]
I can see a professional association laying down standards for our industry, eventually. I guess I think it's early days yet. It's not at all clear what the market really wants most from businesses like ours. Once this is better established, we'll be able to do a lot more toward setting standards.
Thanks again for the opportunity to chat! Looking forward to hearing from others.
Regards to all
Maria Bustillos
Popula
http://www.popula.com
[ edited by populissima on Mar 11, 2001 04:16 PM ]
posted on March 13, 2001 06:00:17 AM new
USauctions:
International Credit card orders: We have devised a system that works very well for international credit card transactions. It is also very simple and only inconvienences the buyer the first time they purchase a product. We very simply ask the buyer to fax (or e-mail a scannned document) to us of their Identification, their Credit card back and front and a signed Declaration, That that in a nutshell gives us authorization to charge that customers credit card for any purchases made now or in the future for purchases made at usauctions.com. All you have to do is match the signitures and keep it on file. The customers like this becuase they only have to do it one time( unless they update thier credit card info) You can customize the form any way you like for some marketing iformation or advertising etc. This document will cover you with a minimal of trouble when dealing with american express or discover chargebacks. Visa and mastercard, Well I am sure you know by now that they do not care about merchants at all and will give the money back to the customer everytime no matter what, if the customer persist in the claim. Luckily most consumers (even the thieves) don't realize this and give up after you show this proof to the credit card company.
I am very impressed with this statement! Have you had any occasions where it fell thru though, and the seller was still burned?
posted on March 21, 2001 05:44:44 AM new
Hi mtnmama. You will recognize my name from my brief stay at another auction sight.
Identity verification is a big problem. I do almost all my shopping online, as I do not get out much, I have had no problems with my credit cards. Most credit cards you have fraud protection on them, or you are limited to having to pay only $50.00 . There are some auction sights I don't want to give my credit card and phone number to, although I feel safe with ebay. I would however, suggest using a card especially for inline, that intentionally has a very low spending limit, say $400.00. Some will say they can't get a cc now days. Not true. Everyone can start out with a secured card to establish there credit or to help repair bad credit. Address verification? That has its drawbacks also, as does everything.There are various ways this could be done, showing a utility bill receipt etc. All of these have loopholes for crooks and creeps. One thing I believe is that deadbeats should NOT be tolerated by ANY auction sight. Life is full of chances though and we have to weigh it all out, use good common sense and then make a decision as to which way to go. Excellent productive thread BTW!
posted on March 25, 2001 10:28:29 PM new
NcharlottesWeb ~~ Thanks for your info!
Well it appears that the life of the thread is coming to an end. So We'll let it stand for another week or so and then a synopsis of the thread then lock.
