Auctions And The Traffic Jam

Auctions And The Traffic Jam



Online auctions have become an​ online flea market and​ they are huge. Cars are available at​ auction online as​ well as​ jewelry, antiques and​ virtually every other commodity you can think of​ (including famous letters and​ artifacts). You can even bid on farm machinery in​ an​ online auction environment.

I’ve likened online auctions to​ a​ global garage sale and​ I still think that’s a​ pretty good picture of​ what it’s like. You simply use cyber cash instead of​ spare change and​ you wait for​ the​ delivery guy to​ show up with your treasures.

In a​ brick and​ mortar retail store you may have secondary shops where you can send overstock items or​ discontinued merchandise. in​ online retail you actually have a​ unique advantage over your brick and​ mortar counterpart. Why? Online retailers have a​ function called ‘online auctions’. the​ vested interest for​ online auction sources like ebay is​ that they have built in​ fees that help make their business profitable.

You may ask why this is​ a​ benefit for​ online retail. to​ answer that question let’s take a​ look at​ the​ brick and​ mortar business. the​ owner sells overstock product at​ a​ sizeable discount to​ a​ secondary supplier. There is​ NO marketing potential in​ selling extra product at​ a​ discount to​ someone who will not provide you with the​ ability to​ increase traffic to​ your own store. However, this is​ what most brick and​ mortar stores do to​ manage their overstock or​ discontinued merchandise. Interestingly even brick and​ mortar stores are discovering the​ value of​ online auctions as​ a​ marketing tool for​ their business.

Now to​ the​ online business opportunities – if​ you have overstock merchandise you can use online auctions to​ sell it. You simply set your minimum threshold for​ an​ acceptable bid and​ wait for​ bargain conscious consumers to​ arrive. the​ reason this method is​ different is​ that as​ a​ seller you can set your profile to​ include information about your online store and​ can even provide some sense of​ link to​ your online business.

So, to​ boil this down as​ simply as​ possible – brick and​ mortar stores give up marketing potential when they sell to​ overstock companies while their online counterparts look to​ online auctions to​ not only sell their excess merchandise, but also drive traffic back to​ their online store with the​ potential for​ additional purchases.

Online auctions provide a​ perfect opportunity to​ appeal to​ price conscious consumers and​ let them know that you care about keeping prices down for​ everyone.

The truth is​ you can sell some of​ your merchandise through an​ online auction even if​ it’s not an​ overstock item and​ the​ reasons have everything to​ do with marketing your business. You don’t even have to​ spend lots of​ time and​ money on auctioning a​ few items. Some businesses consider it​ a​ part of​ the​ cost of​ doing business because those few items can assist in​ getting non-traditional buyers to​ your online portal.

Auctions are a​ potential goldmine for​ savvy online business owners. Have you given it​ a​ try yet?




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