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Volume 1 • Number 1 • April/May 1999 The Newsletter for Virtual Storefronts on ProAuction

Big Changes Mean Little Delays

Although the ProAuction Website has been operating since the end of February, it is finally reaching the point we had envisioned early on. Creating a first class Website with all the bells and whistles took a little longer than we had expected. Modifying the software to meet our needs, establishing and securing our online payment systems, working with shipping companies to help automate deliveries, and integrating all of these systems together to work as one seamless service has been a challenge.

We expect to be at full operation by the first of May. Obviously, during the time that we have been developing our site, we have not charged any of our Virtual Storefronts, except for the one-time setup fee. To encourage our existing Storefronts to stay with our service, we will not begin charging any monthly fees to Virtual Storefronts that have signed up prior to May 1st until after their first sale is completed.

Just think... free advertising for your business on the Worldwide Web that shows your shop, some of the items you carry, and allows potential customers to contact you. And, sooner or later, they'll be buying from you online.

 

Interesting Facts About E-Commerce

According to Forbes.com, "the next wave of web auctions will be from regular retailers, which customarily assign a fixed price to products."

Forrester Research's Evelyn Dykema predicts that soon everything from clothing to cars will be on the virtual block, going for market price. According to the firm, there will be $19 billion worth of consumer auctions in 2003, compared with 1998's $1.4 billion.

By 2003, it is estimated that business-to-consumer auctions will account for 66% of all online auctions.

Frankly, it amazes us that this kind of growth is predicted given the lack of security and support found on many of the most popular online auction sites. Larry Schwartz, president of Auction Universe, came right out and said in the Wall Street Journal that "We stand behind nothing."

Ebay's Brad Handler, director of law and public policy, attempts to skirt around the issue by stating that "Ebay is not an auction. Ebay is a person-to-person trading community. As such, individual users are responsible for their listings." Caveat Emptor! Let the buyer beware!

Aren't you glad that you are listed on a site owned and operated by professional auctioneers who follow the National Auctioneers Association Code of Ethics, and stand behind their Virtual Storefronts and the items they sell? We're glad you are!

Coming Soon — Sales by Auction Tags

We've come up with a clever way of generating interest in your store's online items. The ProAuction sales tag is an effective way of quickly identifying which items in your store are currently being listed on the Website. Simply write the Item Number on a tag, and attach the tag to the item. Shrewd business people will use this as a tool to generate a sense of urgency in their customers ("You should bid on this now or you might miss out!") and potentially drive the asking price higher. If you have a computer with Internet access in your store, you could even invite interested customers to bid for an item right there. It's easier to encourage someone to bid for an item than to buy an item outright.

 

Change Is Good!

Customers like to see store items change over from time to time. Shoppers in Virtual Storefronts like to see it, too. We recommend that you keep your auctions shorter (5-10 days, with 7 being an easy number to remember), and change around the items that you list from time to time.

Shorter auctions seem to work better than longer ones for most items. Many people will procrastinate if they seen an ending date half a month to a month down the road. Some want to be secretive and not bid until nearly the end of the auction so that other bidders won't know their intentions. Shorter periods encourages people to "bid now" rather than wait until later. What if an item doesn't sell in that shorter time? Simply re-list the item immediately, or re-list it at a later time.

Having unsold items not be re-listed for a while, and thus seem to disappear, helps instill a sense of urgency in the shoppers. It makes them realize that this just might be their only chance to purchase the item.

 

Welcome New Virtual Storefronts!

4 Star Construction, Classic Coin and Bullion, CJ's Antiques, Hacienda Hardware: Colección Mexicana, and Setnik's In Time Again.


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