While those selling on eBay have been re-grouping for their next boycott, a number of high net worth investors, based in the United Kingdom, have been busy funding (and overseeing) the creation of the next generation static and live auction venue. 

Raymond Klein, an investor and spokesman for the group stated “the time is ripe for us gents in the U.K. to take a stab at the online auction industry. While there are a number of popular auction sites operating with marginal success, the focus has been shifted away from the seller experience. We plan to cater to sellers and in turn, they will cater to the buyers.”

No doubt, eBay sellers no longer wish to be controlled within a captive venue. While many have tried to capture market share, few have been successful. 

When Klein was questioned as to how they intend to achieve what others have failed to do he stated, “The idea of free listings or member fees to list an unlimited amount of goods, simply does not work. Seller fees are what drive the technology and traffic. This is not to say that sellers should be gouged at every turn. I believe those selling within any venue need to have realistic expectations. If they expect something for nothing, they may ultimately receive nothing.” The site will be beta tested through April and May on a closed platform. The official launch date is scheduled for July 4th (an appropriate date, when many have the thought of independence on their minds). 

A preview of the site revealed a new and exciting approach to selling. It’s interactive and offers sellers various channels in which to swap product in and out of with the click of a mouse. I don’t use the word “cool” too often but, I’ve got to admit - it’s a “cool” concept.

I bulk uploaded ten sample products. The bulk upload process went off without a hitch. I then uploaded one item and the upload process (while not unlike other auction sites) was quick and easy. I then elected to swap my products in and out of the optional sales channels. I ticked off five of my sample products and they were immediately transferred to a unique sales channel, which simply blew me away. I then swapped my items back into my inventory and switched them out to a new sales channel. The entire process of switching channels was completed within seconds. 

All of this technology makes me wonder just what it will cost a seller to participate within this new venue. However, I was pleased to see that within the seller fees page, the fee schedule rivaled those of the most popular (established) online venues. What I found more interesting was that buyer’s also a pay portion of the final transaction fee. There appears to be a fair-handed dealing between both buyer and seller. The notion of both buyer and seller sharing in completed transaction fees will appeal to sellers, however, will buyer’s take to such an idea?  

“I see no reason why both the buyer and seller do not in share in transaction fees. The buyer within a traditional auction setting pays a buyer’s premium and the seller also pays a commission to sell their goods through the auction house. This is how the intermediary survives. Based upon this premise, nominal transaction fees between buyer and seller (on an equal basis) is fair and equitable” stated Klein. 

What about the rules of the road? Unlike other venues, this new site will not have the attitude that “it’s good to be the King”. This site appears to be about connecting buyer’s with sellers and moving goods - without being cast in the role of being a benevolent dictator. 

Navigation of the site is a breeze and as of the publication of this article, does require that all users register using a credit card. However, Mr. Klein informed me that they have not yet set that policy into stone and that they may simply require that all users be ID verified. “We do need to ensure that all users are conducting legitimate transactions. I believe that for the most part people are honest, however, we have to put in place safeguards to protect the seller” stated Klein. 

While the site caters to those seeking to place regular auction listings, the site will also appeal to the live auction seller.

With thousands of traditional auction houses around the globe seeking advanced technology at realistic pricing, the financial windfall for this investment group could be staggering. Auction houses have been connecting with international buyers via online auction platforms in increasing numbers during the past few years. There are an estimated 3,000+ auction houses, which can benefit from utilizing advanced live auction technology.  

This market (while considered a niche) is highly prized by the few providers currently offering limited technology, which is normally associated with high fees. “Those using such services are getting the steak without sizzle. We will offer traditional auction houses a technology package, which is replete with standardized features that will outshine  competitive offerings from the get-go”, stated Klein. 

There is no doubt that the success of this site will rely heavily on traffic. Auction venues appear to experience a high mortality rate when traffic flow is not consistent. When posed with this question Mr. Klein stated, “our site marketing team expended months in preparation of our site launch in developing marketing strategies, which includes mass marketing through SEO and pay-per-click placement advertising. It’s no secret that one can achieve massive amounts of qualified traffic through such campaigns on a daily basis. The majority of seller and buyer fees will be re-directed into our marketing campaigns.”

Is it possible that a privately held company can gain market share this late in the online auction game? “Anything is possible, as long as you learn from others mistakes”, stated Klein.