posted on July 9, 2001 03:40:41 PM new
The "free listings" appears to be a promotion. Listing fees and closing fees are given at the auctionsite as:
Minimum Bid (Start Bid) Listing Fee
$0.01 to $9.99 $0.25
$10.00 to $24.99 $0.50
$25.00 to $49.99 $1.00
$50.00 to $199.99 $2.00
$200.00 and over $3.00
Sale Price Closing Fee
$0.01 to $25.00 5%
$25.01 to $1000.00 $1.25 + 2.5% of the amount over $25.00
$1000.01 and over $25.63 + 1% of amount over $1,000.00
Minimum Bid,
Opening Value or
Reserve Price Insertion Fee
$0.01 - $9.99 $0.30
$10.00 - $24.99 $0.55
$25.00 - $49.99 $1.10
$50.00 - 199.99 $2.20
$200.00 and up $3.30
Closing Value Final Value Fee
$0 - $25 5.0% of the closing value
$25 - $1,000 5.0% of the initial $25 ($1.25), plus 2.5% of the remaining closing value balance.
Over $1,000 5.0% of the initial $25 ($1.25), plus 2.5% of the initial $25-$1000 ($24.38), plus 1.25% of the remaining closing value balance.
Comparing the eventual fee structures, I don't see a nickel or dime "savings" as meaningful, and taking advantage of a free listings promotion could well be a real disadvantage to auction sellers given the traffic differential.
posted on July 9, 2001 08:19:24 PM new
Well, I had posted a response trying to answer why our fees are structured the way they are, but it was deleted almost as quickly as it had been posted.
Moderator: was it something I said? Please let me know what I can and cannot say in order to stay within your guidelines.
posted on July 10, 2001 06:58:12 AM new
Hello to all, and thank you for noticing!
(moderator, I believe I have taken out anything that could be considered “promotional”. . . )
As Marketing VP at Carnaby, I would like to take a little time to answer some questions that may be on everyone's mind...
After all of the misrepresentation and false promises that have been presented in the online auction industry lately, I can certainly understand why anyone would be hesitant to try another auction site. However, I would like to reassure all of our future members that we are here to stay, and also add a few key points to let you know where we stand:
1) One of the things that we certainly do NOT want to do is lead people on with the false hope that we can survive without implementing some sort of fees. Even though we would love to be able to maintain our free listings forever (and will do whatever we can to do so), we have to be reasonable. We are a business, and as such, we require revenues in order to maintain the quality of our site, its advanced features, bandwidth, and a proper customer service department to address all your needs. Plus, none of the free sites will ever be able to create enough revenue to implement any substantial marketing campaign to bring traffic to the site and expose your auctions to the millions of potential buyers around the world.
2)We understand that we are in a catch-22 situation where sellers want bidders before they list and bidders want items before they buy (that's a tough one...). What we have done is created several programs that will give both buyers and sellers the best of both worlds. Both bidders and sellers alike have incentives to come to our site every day, but I am not allowed to list them here, so you will have to see them on our site…
3) We are not interested in becoming a "fly-by-night" operation like some of the other sites we have seen, and have already spent millions of dollars of our OWN money to make sure that we have all of the most advanced features and services available today, plus many other features that other sites haven't even thought of yet, including the Carnaby Rewards section to constantly reward our loyal members.
4) We also know that Carnaby can only succeed if our members are successful, so we are in the process of finalizing and implementing an aggressive marketing campaign in order to attract more buyers to the site. Of course, any support that we get from sellers is always greatly appreciated....
5)Lastly (phew!), I would just like to ask that all of you get to know us a little better before you form your opinion.
We guarantee you will be impressed with our site features and performance, excited about our incentive programs for both buyers and sellers, and comfortable with what we have done to help make Carnaby your new "home."
If you have any other questions or concerns, you may post them on our Chat Boards at any time.
posted on July 10, 2001 07:08:54 AM new
Okay... so now we have a small auction site (with fees) trying to make a go of it. I believe you were hoping for just such a site dimview, but here you are comparing apples to oranges again.
Thanks, I'll check it out. It's nice that you're being upfront and straightforward, and not making promises you don't intend to keep. Sites that say one thing to lure people in and then backpedal and change their terms when they said they wouldn't turn me off! Honesty is refreshing! Hope your site becomes a success.
Wondering if your site has a fixed price marketplace and an automatic integrated payment mechanism which eliminates deadbeat bidders? What differentiates your site from others? For example BargainandHaggle is offering a totally different trading concept than eBay (you haggle prices down from an initial max price), and is unique and captivating in that sense. Are you guys another eBay clone?
posted on July 10, 2001 10:00:02 AM new
Dear eSeller004:
Regarding your question about a fixed marketplace - we are currently in the final stages of completing a Storefront feature. We have made an integrated payment mechanism a top priority, and will focus on it immediately after we release our fixed price venue.
As far as what makes us different, we think our staff is much better looking than the competition - just teasing! We have chosen not to worry so much about "differentiation" (boy, that's a mouthful), as we have about building a pleasant and efficient trading site.
Nice! Sounds like you have a plan for success. The reason I had mentioned an integrated payment mechanism is the fact that it makes buying and selling SO EASY. An integrated payment mechanism also allows your site to generate revenue by taking a piece of every transaction. Hopefully not as large a piece as Half.com or Amazon Marketplace, 2 other sites with integrated payment mechanisms!
So where and how are you advertising? Can you give us some examples?
Do you have an integrated bulk-loader for the site? It's tough to generate a million listings QUICK without some sort of bulkloader in place.
I'll check out your site and list a few items that have sold well on other sites. Now, if I go 6 months without sales as I've done on Bidville and ePier I'M GONE!!!
posted on July 10, 2001 10:24:37 AM new
Hello Carnaby:
Thank you for coming and answering some questions! I know when I initially looked at your site I was very impressed.
I, too, am very happy to see someone who can honestly state that without revenue of some type you can't last long. I couldn't agree more.
Personally if I have an excellent sell-thru rate, I don't mind a small listing fee. But if my sell-thru isn't so good I sure don't mind paying a reasonable final value fee. In fact, I'd rather pay an FVF because I know the site can be putting that money to good use to bring me more buyers.
-----------------------------------
A few more questions if you don't mind. What kind of funding/backing do you have? Are you a public or private firm? If private, is your plan to go public? What's the rough size of your advertising budget for this year and next? What kind of tactics are you going to use to bring in buyers? We in the auction biz always talk about a site's sell-thru as a gage of success. Do you have a target sell-thru you're going to attempt to achieve? Bidville's proud about a 1.4% sell-thru rate. Would you? Just wondering what we can expect from all of you new upstarts.
Your site's name is nice though (Carnaby). Sounds stylish. Much more elegant than Gegy, although Gegy might be more memorable with that goofy green guy mascot that noone can forget.
posted on July 10, 2001 10:49:30 AM new
Mr. Carnaby,
I have always wondered why the smaller auction sites like to match their fee structure with ebay. I know ebay is the king of the hill, and all businesses like yours look up to them, but why do you mirror their fees? Is the product you offer so identical to ebay that the exact same fee structure is justified? You'd have to do a lot to convince me of that. I understand that a business needs income to survive (I'm a financial advisor in the real world, so there is no end to how much I understand that reality), but if I'm going to pay you as much as I'd pay ebay, why don't I just use ebay!
More importantly, if you want me to try your business you have to work with Channelfusion to get them to support listing on your site. AuctionWatch only supports listing to ebay, Yahoo and Amazon, and doesn't seem inclined to ever offer anything else. I post the bulk of my auctions with Channelfusion, and they're adding and subtracting auction sites on a regular basis. I'm not bothering with listing on any new sites until I can do it with an auction management service. To get them to add support for your site, you need to contact them and ask them to do it.
If you need to answer any of my concerns and can't do so without the moderator deleting your post, you may e-mail me at [email protected] but please don't put me on any spam lists.
posted on July 10, 2001 12:44:18 PM new
Dear eSeller004
Let me reply to some of your questions right away, and defer some to make sure I am answering them fully and adhering to AW's guidelines.
About Integrated Payment Services
We had an integrated payment processing service until very recently. With the downturn in the economy, they were unable to fulfill their commitment and we had to cancel the relationship.
We are still working on the system with an alternate payment processing company, and will release the service as soon as we are confident that it meets stringent accuracy, privacy and security guidelines.
About Bulk Loading
We do indeed have a bulk loader. We call it the "Max Loader". As a matter of fact, we are preparing to announce an unique Beta Program for our "Max". The details of the program were posted on our site earlier this morning.
About Your Sales
If you go six months without a bid on Carnaby, believe me, I will be gone too
posted on July 10, 2001 01:41:17 PM new
Dear Wallypog, petertdavis and eSeller004
Let me take one question at a time:
Advertising
We are currently working on several venues including radio, billboard, and trade show participation. We have plans to target major metropolitan areas first.
Company structure
We are a private company at the moment, but going public would certainly make available more funding for us to increase our marketing campaign and bring more users to the site.
We do not release funding or budget information, but I can assure you that attracting new visitors to the site is our #1 marketing priority!
Sell-through
We will not be satisfied with a sell-through rate of less than 30% in our first year, and will do whatever it takes to achieve it.
Mascot
What can be more memorable than a smiling ball of fire laying on a beach chair? (My daughter still has nightmares about green men!)
Inclusion in Other Sites
It would certainly be a privilege to be included as one of the sites supported by the auction management sites, but we also understand that we may not be be added until the site generates enough activity or demand to support it.
posted on July 10, 2001 01:54:36 PM new
Carnaby, we may be tough but you'll earn a lot of respect by answering questions with the candor you're displaying here. Just try to remember not to make your posts too "promotional" and therefore deleted
Checked out your site just a few moments ago and I have to say that's a darn nice site layout you have there! I'm impressed! Verrrrrrrry nice 1st impression! It appears well thought out and professional in every way.
When the new Gegy site debuts, if it's even 80% as nice as yours, they'll have done real well!
posted on July 10, 2001 03:27:27 PM new
Carnaby, I don't doubt that we can be a tough crowd, but I think that's because we, as sellers, are all looking for the same thing.
Someone honest who can earn our trust;
A company who isn't going to get so big for their breeches that they have to see a certain rate of growth (profit-wise) during a particular time period to the point of basically putting the screws to their sellers to the extent where we feel we're locked in straight jackets.
One of the prime benefits of being an auction sellers is freedom--freedom to list when you choose and not list when you choose; freedom to work in your jammies and be your own boss; freedom to run your business the way you see fit to run it.
I can sure understand how going public would bring in venture capitalists meaning more money to spend on publicity. However, is it not possible to do this kind of thing without going public? I think most of us here have been victim of what's happened when a company starts focusing on their share holders. Almost immediately the customers aren't important anymore because the company has to show a certain profit to keep stockholders happy. I'm not saying this is the case in every situation--after all, if a company keeps their customers happy, the company should grow on its own and therefore keep stockholders happy as well. I think the largest problem comes into play when a CEO says 'we need to hit a certain amount of growth in a certain amount of time' then turns their focus to stepping on anyone who gets in the way of that growth.
Again, I sure do appreciate your input.
-----------------------------------
Thanks for your indepth reply. I glanced at it earlier, but was at the dentist *again* for much of the day and just now had a chance to really read it.
From my own perspective, I posted 19 items at eBay with the following results:
First item, one bid at $9.95; second item, one bid at $4.00; third item, one bid at $4.00; fourth item, started bidding at $4.00, but has ten bids at $20.50; fifth item, one bid at $4.00; sixth item, one bid at $9.00; seventh item, one bid at $4.00; eighth item, one bid at $8.00; ninth item, one bid at $19.00; tenth item, one bid at $4.00.
Total sales were $86.45. To make the calculation easier, a flat 5% final value fee would be $4.32. That leaves $82.13.
eBay has traffic and that traffic led to one item receiving multiple bids; Carnaby likely will not have the traffic, so assuming these same items received bids, its likely that none would have received multiple bids.
Total sales becomes $69.95, less a flat 5% final value fee of $3.50, leaving $66.45.
So given similar fee structures, I'd have to go with eBay.
Perhaps Carnaby should consider not only initially offering free listings but a minimal final value fee, which could be increased at specific milestone events, e.g. sell-through rate reaches X%, then Y% then Z%?
posted on July 10, 2001 04:00:18 PM new
This thread sounds like the gegy promises all over again.
"We plan on XYZ. We have arrangements to do XYZ. We won't be happy unless XYZ."
Then all the salivating sellers jump on the bandwagon only to be disappointed in the end because none of it is based on reality.
.
.
.
.
I must admit, I like the carnaby layout though. Very well done.
[ edited by gottaknow88 on Jul 10, 2001 04:00 PM ]
posted on July 10, 2001 04:22:12 PM new
eSeller004,
Just because people offer up an opinion or play devil's advocate, does not make them bashers. Calling people bashers could be construed as insulting and I would urge you not to post in this manner in the future.
posted on July 10, 2001 05:46:38 PM new
Dear petertdavis
I am slowly learning my way here at AW.
Honestly, though, I do not have an issue with codes of conduct - especially within an open forum. We have them on our site too, and would expect the same courtesy from its membership.
posted on July 10, 2001 05:47:23 PM new
In response to eSeller004's comments
I'd be even happier if 80% of our first time visitors have an impression as good as yours!
Dear wallypog
It has been my experience that what sets the pace in a company is it's management team, and how this team manages the company's growth. At Carnaby, we realize that the auction business is a circle in which the needs of each audience must be kept in balance - sellers, buyers and those who provide the financial backing for these ventures.
We definitely expect Carnaby to grow, and with it to experience growing pains. We are also conscious that the loyalty of those who help build an organization must be recognized and rewarded - and not by a straight jacket (i prefer to call them golden handcuffs).
posted on July 10, 2001 05:48:47 PM new
Dear dimview
Thank you for shedding some light on the issue of fee structures (no pun intended ). We currently only charge final value fees, and using your calculation, you are absolutely right. It would be foolish for us to pretend that we can draw the same "biddership" that an established site commands. We are confident that our membership will find value in our level of service. Service that I can not mention here, but that can be confirmed by an exploration of the site.
As far as insertion fees, we do plan to introduce them when they can be justified by both our traffic and sell-through ratio. At that time, we expect the market to have changed, and will need to review and adjust the rates accordingly.
(corrected typo)
[ edited by carnaby on Jul 10, 2001 06:14 PM ]
Thanks for the reply. Although it looks like a seller will have to perform an auction triage and still list items likely to attract multiple bids on eBay, that still leaves room for listing duplicate items that usually receive a single bid on eBay.
Honesty is refreshing! Hope your site becomes a success. 
)