The idea is not new. The first mention of an auction without a fixed value of goods dates back to 500 B.C. Such a type of sale is very popular these days due to the incredible excitement it brings and the opportunity to buy unique items at an affordable price.
The shift in the online niche has simplified the process. Internet auctions have become especially popular during the quarantine restrictions caused by the spread of Covid-19. Statistics demonstrated by Christie's show that, during the lockdown, the auction business attracted more than 30% of new customers.
Now is the best time to open a gambling project. The Rosloto team will help you perform this task. We have created a detailed guide on how to launch an online auction, quickly monetise it, and get consistently high traffic.
The creation of a site is not so difficult. The main thing is to understand the key nuances of the work of such platforms and choose the best model that meets your needs.
The most popular versions of the solution are:
This is the most common form of marketplace, which is relevant for both virtual and land-based business environments. This is a public auction with ascending prices, where users with the biggest bet win.
Features of the English type of bidding
Control over the auction
Each participant gets access to statistics, including information on the number of potential buyers and the size of their bids
Dynamics and cost of the lot
The price of goods at the English auction directly depends on the dynamics of the event. The evaluation of the lot may be affected by the presence of respected niche experts or collectors.
If bidding goes slower than expected, this is an incentive for the seller to lower the price
Entrepreneurs are provided with an opportunity to predict the reaction of users, the purchasing power of potential customers, and the level of demand for certain products in a short time
This type of bidding is most often used for the sale of exclusive goods, luxury items, and works of art.
The more unique your product, the higher the chances of selling it profitably at the auction
The most recognisable example of English-style bidding is the eBay international digital platform.
It currently has over 187 million registered members. For the first quarter of 2021, the turnover of the trading house exceeded $27.46 billion.
In this case, there is a descending betting system, and not the buyer but the seller fights for the lot.
How the reverse bidding works:
Features of the solution:
From the name of the auction, it is clear that each participant is obliged to pay a rate, regardless of whether he wins or not.
The mechanism is as close as possible to the format of the lottery business: people who buy a ticket do not pay for a piece of paper but for a chance to receive the prize.
Advantages and features of trading in the “All-Pay” format:
This is one of the most popular trading modifications in the “All-Pay” format. During the bidding, the participant does not handle the amount of the goods immediately but makes a series of mandatory payments. The size of each next step is fixed at a few pennies.
Each new bet increases the duration of the auction. The winner is the participant who made the last bid before the counter reset.
This type of auction is very popular in the B2B segment. Sellers can profit not only from the sale of lots but also from fees paid by the participants. Regardless of whether the user won or not, each move has to be compensated in full and is non-refundable.
To create a profitable business of this type, it is necessary to choose a bidding scheme that meets the needs of the audience.
An auction mechanism is a way of competing for goods and changing bids during the bargain.
Most often, owners of online trading platforms use:
Many people assume that online auctions work with the same wide range of products as the largest retail brands like Amazon, Alibaba, or Walmart. However, this is a misconception.
The organiser gains a local advantage over competitors by working in a specific narrow niche, such as the restaurant business, lotteries, casino tourism, or slot machines. For example, the Amazon network has grown into a global giant, having started with a simple online platform for fiction sales.
An auction site is a digital platform where goods and services are bought and sold using special trading mechanisms.
The website's job is to manage the relationships between the seller, the buyer, and the system operators. Therefore, auction software must provide a specific set of features for 3 categories of bidders:
The required functionality includes:
Those who purchase lots should have access to the following functionality:
The platform should include an appropriate set of software components to control and optimise all work processes.
Among the functional elements for administrators and operators of online trading, we can name:
The online bidding software should also include the following:
Operators can implement a business project from scratch, using template solutions and PHP frameworks. The Rosloto team offers a convenient and profitable alternative — ready-made game projects on a turnkey basis.
The product includes:
The turnkey auction software from Rosloto is the best choice for a quick start and maximum coverage of the market.
It is very important to plan your marketing budget and choose communication channels that are relevant specifically to your niche.
To promote auction sites, the following tools and methods can be used:
When establishing a business, it is worth preparing for the fact that investments will not pay off immediately. Owners of iGaming online projects typically see their first net profit in 6 – 12 months.
Bidding cannot be considered a new phenomenon but during the period of worldwide quarantine restrictions due to Covid-19, this type of business has reached a new level.
Now is the best time to implement a project of this type.
You can learn more about the nuances of organising an auction and discover the most promising market trends from Rosloto studio.
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