The Future of Seller to Seller Online

Almost two decades ago, eBay changed the way that Americans shopped. While shopping for goods online was still a new idea back then, eBay took the concept even further by introducing a large-scale online auction site, where members could come together to buy, sell, and trade goods. Although other websites followed suit, eBay remained a force to be reckoned with, leaving its mark on the e-commerce world. But today, online auctions have dipped in popularity, with competitors like Amazon offering customers comparable alternatives. Read on to find out how the online auctions are adapting to a changing marketplace.

History

Online auctions were happening even before the first web browsers for personal computers were launched. Of course, the concept was slightly different – sellers traded through text based e-newsletters, forums, and emails. The first company to introduce the type of online auction that we know today was Onsale in 1995. Competitor eBay was launched later in the following year. Both programs offered advantages to both buyers and sellers, including the use of automatic bids specified by the customer and a search engine to quickly find goods. Since then, online auctions have increased the amount and variety of products and services that can be bought and sold. Today there are thousands of websites operating online auctions as a form of e-commerce.

Innovation is Key

Online auctions were extremely popular in the late 1990s and early 2000s; however, sites like eBay reached a plateau after 2005. In 2007, many auction sites had lost their appeal to customers who weren’t interested in bidding when they could buy items for a similar price elsewhere. Online auction sites began to post losses as opposed to profits. Today, sites that are still around have adapted to stay in the game. In particular, eBay used mobile phones and tablets to leverage their business.

Predictions

Online auction sites will continue to change with new technology. Although being able to stay in step with the times is usually what makes or breaks an online auction site, those that can adapt fastest are likely to stick around. One predicted advancement in the industry is universal registration, which would enable customers to register and giver their credit card information only once for any auction site. Linked auction sites could streamline user profiles and ratings as opposed to forcing users to juggle identities on several different sites. Another possible development is the growth of niche sites, which allow users to buy and sell highly specified items. Finally, growth is expected for the larger online auction retailers, including eBay, Amazon, Yahoo, and uBid. Smaller sites may be bought out by larger sites. Merchants who want to turn the largest profits through online auctions will diversify, selling on more than one site for added security.

Quick Wrap-Up

Although online auctions decreased in popularity in the mid-2000s, some major retailers are still around and going strong. Those that last tend to be the retailers that keep up with the latest technological advances. In the future, added customization and niche auctions will become more popular.