Yes, this is what I think I was reading. An online auction platform will integrate with
eBay so that “… unsold auction goods automatically list on eBay and are optimized for visibility. It’s a unique marketing tool that auction houses can use to secure supply and increase their sell-through rates.”
Unsold lots in your auction (reserves too high) are then put on eBay (with lower reserves I presume) selling at auction or buy-it-now? Here’s my question — why not put these items on eBay first, and forget the other auction platform altogether?
According to this online platform, this will allow auctioneers to have the option of exposing unsold auction inventory to eBay’s 179 million global active buyers. Maybe that’s the other reason it’s “unsold” is that it wasn’t previously directly exposed to these 179 million global active users?
I suppose it could be that the initial platform has lower costs of sale, so it’s worth a shot before paying eBay’s higher fees? Maybe in some instances, it’s prudent to list at the higher reserve to see if someone will pay it … before lowering to a more market-sensitive reserve?
What’s maybe more interesting here is the plan is all disclosed to bidders/buyers ahead of time. “If you don’t pay this we’ll be moving it over here where you might (or might not) pay less?” Generally for centuries auctioneers have been marketing property suggesting “This is your only opportunity …” Not here.
Maybe this thought is similar to some of those timed liquidation plans where property is discounted a bit early, and then periodically discounted more until it’s all gone — almost the opposite of an auction? Yet, the claim is the secondary platform has all this market power?
We have long wondered out loud why auctioneers market property on their own platform — or like auction platform — with anything less than 179 million bidders. In fact, we have a story upcoming asking that question again noting that some auctioneers claim, “We have a big mailing list and a large database of bidders …”
While we have argued that at some point that one more bidder does little to increase price (and the right bidders are far more important): (https://mikebrandlyauctioneer.wordpress.com/2019/04/01/auctioneers-alpha-and-beta-and-more/), if you’re telling your sellers your database is bigger than mine, apparently you doubt that.
And it does appear our aforementioned platform thinks more bidders results in more money as they tout eBay’s 179 million, while at the same time think marketing to less people first is prudent? It’s not clear to me here that there is a consistent theory regarding how to maximize price.
Lastly, if property is on the Internet, is it not accessible to virtually everyone on earth? If bidders/buyers are desperately looking for something … are they only looking on eBay? Only on any certain platform? Only at your auctions? We likely have just as many questions as answers.
Mike Brandly, Auctioneer, CAI, CAS, AARE has been an auctioneer and certified appraiser for over 30 years. His company’s auctions are located at: Mike Brandly, Auctioneer, RES Auction Services and Goodwill Columbus Car Auction. He serves as Distinguished Faculty at Hondros College, Executive Director of The Ohio Auction School, an Instructor at the National Auctioneers Association’s Designation Academy and America’s Auction Academy. He is faculty at the Certified Auctioneers Institute held at Indiana University and is approved by the The Supreme Court of Ohio for attorney education.
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