Mark Turner, CEO of Indoogoo, said: “This is the first time the social network structure has been incorporated into an online auction service, and we feel it has the potential to dramatically change the way second hand construction equipment is traded around the world. The Auctions function is available to anybody with an Indoogoo account, from individual traders to large equipment manufacturers and rental companies.”
Indoogoo Auctions works differently to existing auction websites. Unlike most other auction facilities, Indoogoo does not retain bidder information for its own use at a later date. Instead, this information is given directly to the auctioneer at the time of the auction. This means that auctioneers can contact unsuccessful bidders directly offering them other items that might be of interest and ensuring their equipment is always available to the right buyer. “In short, this means there is no brokerage conflict within the Indoogoo Auctions business model,” said Indoogoo’s CIO, Hanoof Nass.
Users of Indoogoo Auctions can build their networks and guarantee that no trading opportunities are missed, as once an auction is complete all bidders can contact each other through the platform. However, in line with the site’s strict privacy policy, users can always choose not to be contacted by simply denying the contact request received.
Equipment from a range of industry sectors will feature in Indoogoo Auctions, including construction, mining, agriculture, marine, oil and gas and other heavy industries. There are no strict limits on what can be listed, although the service is targeted at construction equipment buyers and sellers.
As auctioneers, users control every aspect of the auction process. This includes the design of their very own ‘auction hall’, which can be adapted according to the seller’s own brand. Once their auction hall has been created, users can choose from three types of auction: a timed 30 day auction with a ‘buy now’ price, a day auction with reserve, and a day auction without reserve. They then set the time, date and reserve price (if necessary).
To take part in an auction, all users must include proven trade references in their Indoogoo profile. Users can choose to sell an item that they have already listed for sale on the site, or to create a new listing specifically for auction. Bidders send a bid request to the auctioneer, which works in the same way as a contact request. Once this request is accepted, the bidder becomes part of the auctioneer’s Indoogoo contacts. Each bidder can organise an inspection of the equipment directly with the seller. After this, once the bidder is satisfied that they would like to attend the auction, they pay their bid deposit into an independent third party escrow account. The bidding process will proceed much like existing online auction models. Fellow bidders remain anonymous to each other until the auction is closed, and only the auctioneer can see everyone participating in the auction during the process. Once a sale is finalised, the successful bidder organises payment directly with the auctioneer through the independent, third party escrow service.
As part of the Indoogoo Auctions set-up, the platform also offers a tool for creating email flyers, so users can inform their existing network of their up-coming auctions without having to upload client databases directly to the platform. Indoogoo recommends that sellers list their equipment three weeks in advance of day auctions, allowing time to market the auction effectively.
Auctioneers pay a listing deposit which is fully refundable once a sale is completed, and a sales commission is set at a fixed percentage across all sales with a capped maximum amount. Buyers pay no premiums at all on the final sale.
Although the Indoogoo Auctions service will not launch formally until Q2 2015, the company says it is happy to offer support and guidance for those wishing to plan online auction events once the service is up and running. For more information visit Indoogoo website.
