Feedback on Auction Websites

[Guzzo]

I'm curious to know what kind of experiences or information YE members can provide in relation to auction websites. I'm interested in information regarding startup capital, difficulties, auction scripts/software used, was your website successful, main marketing techniques etc... Anyways, if anyone is interested in sharing some information it would be greatly appreciated!

[hugh009]

Hi, Guzzo! We looked into that several years back and at the time there was some very reasonable priced software to do every thing that eBay was doing. AND it's about time to give those a--holes a run for their money. I'm an Internet buddy with the co-founder of eBay and I have hated to see what the "suits" have done to a great original project!

Hopefully with Meg Whitman departing we will see some changes made!

Hugh

[rogercbryan]

I own the domain Iauctions.com - i auctions Resources and Information. This website is for sale!

I've wanted to start an auction site for a little over a year. Just takes too much $ to have any chance of competing with the big boys.

Willing to license or sell the domain name... I've turned down offers in excess of $5000

[Guzzo]

I'm not after the big boys, at least not yet. I think that the only way to compete would be to find the niche of one or two categories and offer great service,security, and community. I was just interested in what kind of problems/idea/success YE members have experience with auction websites.

[Guzzo]

Anyone have any suggestions on good auction software/scripts? I think i will either buy a script or look into having one developed for me to completely customize what i need. Although the second route may cost a bit to much for what i'm looking for right now. Most likely i will try and get some decent script and then implement a better script down the road.

[rogercbryan]

If you are going to exploit a niche you'll need the backing of a major supplier. I have 200+ pages of research I've done on this business model. All of them seem to be loosers. I had thought about an auction that sells Apple Gear (iPhones, iPods, and iMacs) - my domain name is iAuctions.... thought it would be a good fit. I couldn't find a major supplier to help me get started.

You need one supplier (or drop shipper) who is willing to let you sell their stuff for about a year. They need to have decent prices and a wide verity of products. If you can list 1000+ items then you'll have a starting point.

After you get that then you can start marketing for buyers. I estimated a marketing budget of about $250,000 would be enough to get you going. The problem was the return from items sold no where nearly covered the marketing expenses let alone the development phase. I was never able to find a break even formula that worked for me.

Thats all I have for you on this... if you have any better ideas I'm all ears.

[Guzzo]

What type of business do people usually register as when starting an auction website or ecommerce site? I was thinking about registering as a LLC, would this be the best course of action?