How to Create an Online Auction Website or App like eBay and Poshmark
Sites with the function of the auction - this is not new, but they have become popular only in the last ten years. Why? No expert will give an unambiguous answer, and all of them will agree that this trend should be used. And if you want to create your own eBay-style website auction - our instructions will help you.
From the article you will learn the answers to the questions:
But now the situation is different: there are at least 10 major competitors in the market (for example, Amazon, Etsy, Craigslist, Rakuten, eBid, etc.) and dozens of relatively small auctions that exist on the principle of "spiders in the bank." Therefore, if you want to create a site similar to eBay, you need to do everything right on the first try. And in order not to lose, first you need to study the competitors.
If you already know which niche to choose, then study the main competitors to understand:
#1 Big commissions. eBay earns, among other things, through commissions that are charged to sellers. And since this is the most popular site, it can afford to make these commissions quite large:
#2 No delivery assistance. Amazon has several warehouses to help its suppliers with the storage and delivery of goods. eBay is only engaged in mixing the supplier with the buyer and the financial side of the issue.
#3 Vendor discrimination. eBay focuses on those who bring money to the site, that is, to sellers and advertisers. At the same time, the bias towards buyers is quite strong:
There are confirmed cases where the eBay code confiscated the seller’s money for the benefit of the buyers, even when they were wrong and violated the terms of the transaction or use of the goods.
#4 Tough competition. eBay is the largest online auction that attracts a very large number of sellers, which is why the competition on the site is off the charts. And how can new sellers attract customers? That's right, just dumping prices, which is why other sellers are forced to lower prices and work on the verge of profitability.
#5 Restrictions on communicating with customers. The service limits communication between the buyer and the seller solely by contact on the lot. Moreover, only the buyer can get in touch, while the seller can only respond, and communicate outside the system is prohibited. This is very inconvenient for building a marketing policy. For example, if you put up a lot, you do not have the opportunity to notify those who previously bought a similar product from you.
How to use the disadvantages of eBay:
English auction can be:
Second price auction, or Vickrey auction. The rules are the same as in the first price auction, only the winner pays not the amount he indicated, but the second one on top (which the other participant indicated). Usually used to sell collectible items. On eBay, there is this type of auction, but with closed bids and the ability to set a minimum reserved price.
Dutch auction. Usually used to sell large quantities of dairy products, herbs, meat, etc. in a short time. Participation is paid. The lot is set at the maximum price, which gradually decreases (by the second, by the minute, once per hour, etc.) until a buyer is found.
Dutch auction with hidden price. The seller puts the lot at the market price, a.k.a. the starting price. Viewing the starting price is paid, and each viewing reduces the price by a certain step. The one who agrees to buy goods after viewing the current price wins.
Scandinavian auction. The seller puts the lot up for auction at the lowest price, for example, for $ 1. Participation is paid, and each bid increases the price of the goods and the time of the auction. The last bet wins.
In addition to these types of auctions, there are others, for example, Japanese, double or Yankees. Which one to choose depends on the niche. For example, on eBay they use the second price auction, which is not very popular with sellers, as this reduces their profit. But it is pleasant to buyers, as they can make a huge bid (1000% more than the estimated cost of the lot), but pay only a little more than it costs.
#1. Vintage items, used cars or wine: what are you going to sell?
#2. Bad support, big commissions: what do eBay users complain about and how to use it
#3. Dutch, Scandinavian or English: what type of auction to use?
#4. Functions and technologies: where to start developing a site like eBay
#5. WordPress, Laravel or Yii: How to Create an Online Auction
#6. From 1,000 to 150,000 dollars: how much is website development like eBay costs
#7. Checklist for those creating their eBay