Why are online auctions important to the ecommerce industry?
- Customers love low prices
- Sellers have a high chance for success
- Easy connection with customers
The E-commerce industry is when the traditional retail sector and the Internet come together. Here, businesses and physical auctions do not rent a mall space to get customers and sell, but rather use personalized websites to get their customers to come to them and buy. It is much easier and cheaper for people to become sellers or auctioneers.
Customers have as many choices to buy online as they do in real life. For example, they can buy that hard to find secondhand collectible in an online auction in the Philippines. Online auction websites are one of the most viable places to sell in because of these factors and these are the reasons why they are important to the growth of this industry:
Bidders love low prices
Customers can find it intimidating to bid for products in conventional auctions. They have to compete with others, work really hard, and at the end of the day, the auctioneer is the one who gains the most because he only accepts the highest bid. While this environment is thrilling, sellers don’t endear themselves to the bidders. Usually, customers don’t bid again because they might think the auctioning is too expensive.
In online auctions, the customer experience is the opposite. They have to place a purchase contract and sellers outbid each other by lowering the prices until you choose to buy something. In the end, the customer benefits the most because they paid a lower price online than they would pay in real life.
Because of this new experience, customers will see that online shopping in the Philippines may be better than real-life shopping because they can save more with these low prices.
Sellers have a high chance for success
Physical auctions have a strict ending rule for all possible bids. This means that sellers have a chance of losing because someone with a very high bid ran out of time to present it. On the other hand, sellers at online auctions in the Philippines can choose to have a hard closing or soft one with online auctions. Hard closing refers to sellers who will only give one ending time for bidders. Soft closing auctions mean that the time will extend as long as there is no winning bid.
Most customers prefer the soft closing ones because a seller who is relaxed with the rules is more attractive than a stricter one. Sellers will choose to be open with the time because they know their auctions will be more effective that way. This also means that online sellers will have lower losses compare to real life ones
Besides having a choice of the time they want to end it, auctioneers have the choice of setting up a reserve price and a set price. The reserve price is the lowest price they will accept from a bidder. The set price is the cost a customer can buy now even when the auction is not done. Lastly, sellers do not need to spend so much on setting themselves up. They just need a good Internet connection, decent storage room for their items, and a plan to make their shipping as streamlined as possible.
Sellers connect to the customers more
When you buy in real life, most of the time you quickly get the product, pay, and then just leave. You don’t really get to know the personality or reputation of the one who created the store. This is the same with traditional auctions. They will most likely just scream really loudly and quickly talk about their auctions.
Auctioneers and bidders can only communicate with each through email, social media, and at most, the phone. Therefore, trust in one another is absolutely vital when it comes online shopping in the Philippines of any sort.
It is important that you can prove your reputation to a potential bidder because he or she already knows the risks that come with buying online. Customers know that most auctioneers can lie or fraud them easily thanks to anonymity. Also, they probably spent so much time searching for the reputations of online sellers.
You need to prove to them that you are reputable. This usually means that you have to be ready to answer all sorts of questions. You have to understand that customers do not get to see the person or products right away. These make them want to ask as much as they can. It is also very easy for them to bring up their concerns to you because there is a question and answer box in the auction website for them to type in.
They want to know as much as possible, so they can make informed decisions. Questioning is their only way of knowing they can trust you. If you answer all their questions and make them feel safe, this bidder will most likely buy from you.
The ecommerce industry has brought shopping and auctioning to the online platform. It has revolutionized the way people normally buy and has greatly benefited the customer and seller in different ways.
Online auctions are one of the websites that have made it more convenient for customers to buy cheap products and have made it easy for sellers to be sellers. Because of these reasons, the online auction will continue to be important to the industry.