Online Auctions are a new way to connect buyers with sellers, thus creating a large pool of options to choose from. Traditional way of bidding has been prevalent over the years, but with companies moving towards digital platforms, the ease of doing business has increased. This helps in higher conversions and lead generations.

 

Online Auction Platforms

A few very well known online auction platforms for selling industrial equipment are EquipNet , International Auction Group, BVA Auctions , Rbauction, Purplewave etc.

Due to disruption caused by Covid19 pandemic industrial equipment platforms such as Rbauction and Purplewave  have resorted to online bidding. Rbauction  states that while all auctions sites are currently open for pre-auction inspection, the company is limiting attendance in accordance with local regulations.

Some major auction websites that are popular globally are e-Bay, Listia, UBid.

 

Traditional Auction V/s Online Auction

 

Traditional Auction Online Auction
Pros

  • Potential buyers can examine items closely and ask questions before purchasing
  • Strong networking as a lot of buyers and sellers meet at one place

Cons

  • Capital costs such as venue rent, transport/shipping of items to the venue etc.
  • Limited options to choose from as a lot of buyers and sellers do not prefer traveling to showcase their items
Pros

  • Ample variety of products to chose from
  • Convenient buying as it does not requires travel

 

Cons

  •  Lack of face to face interactions
  •  Evaluating the working condition and   features of the items purchased
  •  Delays in shipping as lot of purchase protocols are in place

 

Impact of covid-19 on Auction platforms & Technology

  • Artnet Price Database quotes that fine-art auction sales dropped to 75.8% in March 2020 compared to the same month in 2019. As per an article, collectibles are the bestselling items at auction sites, with computer hardware and event tickets in second place, and toys and books being third
  • Regional and smaller auction houses such as Bassenge are still opting for traditional methods because they don’t have the luxury or space to put things on hold or cancel auctions
  • Aston Barclay, an online auction platform for cars has introduced new measures to help buyers select and view used stock prior to an online auction taking place. Buyers will be allowed to view vehicles on-site prior to an auction with each person having to sign an online form and confirm the sale they are interested in viewing. Buyers will not be able to turn up and view stock without an appointment. This will also lead in avoiding any technical glitch that may appear because of heavy load on server
  • AuctionTime, an online auction service based in Lincoln, Nebraska increased the number of sales they have each week because of the arrival of inventory and increase of bidders
  • Invaluable saw a 70% increase in new houses joining the platform in need of an online solution
  • The Colombo Tea Auction in Sri Lanka held its first online bidding and has registered 300+ buyers in its website

 

 Online Bidding Points to keep in mind

 

  • Tip 1: Make sure you sign in via a credible link. Do a thorough research on the auction house or platform before accepting or sending an invite
  • Tip 2: Read the terms and conditions carefully. Check if they have any additional hidden charges for bidding or delivery
  • Tip 3: Check out the product description for products offered for sale. Ensure that you do verify things like date of manufacturing/preparing, product reviews, seller reviews
  • Tip 4: Confirm whether the item is delivered to your location
  • Tip 5: Prepare your budget and consider calculating Buyer’s Premium, Sales Tax
  • Tip 6: Monitor the bid increments
  • Tip 7: Test your Internet connection. Make sure that you do not lose out on the bid due to technical error at your end
  • Tip 8: Do a research on your competition. In case if you have the buyer list, ensure that you are aware of their financial stability in the market and bid accordingly

Subscribe to our News Letter