The auction app : how companies tap the power of online auctions to maximize revenue growth

How companies such as L. L. Bean and Sun Microsystems are using online auctions to help boost their bottom lines From liquidating excess inventory to B2B materials procurement, corporate America has discovered online auctions as a catalyst for redefining old supply-chain relationships and business practices. Most analysts consider them the next big business opportunity. The Auction App details the tools and tactics employed by Sun Microsystems, Coca-Cola, and companies of any size and virtually every industry for creating, conducting, managing, and executing online auctions. Greater numbers of businesses will be able to discover the numerous profitable advantages of utilizing online auctions. The Auction App shows them how to: Liquidate excess inventory Acquire new customers cost-effectively Conduct real-time market research Provide new avenues of cooperation between sellers and suppliers Cover ......Page 1 Title Page ......Page 4 Copyright......Page 5 The Auction-App......Page 2 1. The Case for Participating at Auction 1......Page 6 Preface......Page 8 Acknowledgments......Page 12 Dedications......Page 13 Dynamic Commerce......Page 17 English Auctions......Page 23 Dutch Auctions......Page 26 Reverse Auctions......Page 27 Business Models......Page 29 Creating Your Own Auction......Page 32 E-mail......Page 34 Affiliate Programs......Page 35 Online Auctions......Page 36 2. A Brief History of Internet Auctions 23 ......Page 38 Evolution of the Online Trading Experience......Page 40 The Birth of B2B......Page 41 Winners and Losers......Page 44 Critical Mass Counts......Page 48 Inspect Your Infrastructure......Page 49 Don’t Put All Your Eggs in One Basket......Page 50 Special Section: Community-Based Selling and Peer-to-Peer Psychographics 37 ......Page 52 Understanding Peer-to-Peer Dynamics......Page 53 What Can B2C Auction Sellers Learn from This?......Page 56 Psychographics: Who Is the Online Peer?......Page 58 Counting the Computers......Page 59 3. Finding the Relevant Marketplace 47......Page 62 What You Sell Is Where You Sell......Page 63 Business-to-Consumer: General and Niche Sites......Page 64 Excess inventory, distressed merchandise, secondhand business machines, and small manufacturing equipment ......Page 65 On Beyond eBay......Page 66 Finding Your Niche......Page 68 Finished goods (wholesale and retail); small office/home office (SOHO) products; general maintenance, repair, and operations (MRO) products ......Page 69 Services to corporations and small businesses, such as employment, payroll, estimating, benefits management, travel, hospitality, tax accounting, publicity, or advertising ......Page 70 Semifinished goods, industry-specific MRO......Page 71 Spot materials, raw materials, industry-specific materials, commodities, heavy machinery: ......Page 72 Picking the Winners: Evaluating the Viability and Usefulness of an Exchange......Page 73 2. Market credibility and expertise......Page 74 Getting into an Auction......Page 75 II. Pricing for companies with multiple brands......Page 76 4. Software and Services for Creating an E-Commerce Auction Infrastructure 67 ......Page 82 Tools for Selling at Auction......Page 83 Power Sellers......Page 84 Ándale......Page 85 AuctionWatch......Page 87 Auctionworks......Page 88 ChannelAdvisor......Page 89 Fairmarket......Page 90 Choosing an AMS......Page 92 Try before You Buy......Page 93 Look at Your Reporting Needs......Page 94 Feedback Is Important......Page 95 Auctions as Part of Your E-business Platform......Page 96 CommerceOne......Page 97 Oracle......Page 98 VerticalNet......Page 99 Dispute Management/Mediation......Page 100 Appraisals/Inspections......Page 101 Securities and Seals of Approval......Page 103 Why Online Auctions Are a Branding Issue......Page 104 Set the Branding Goal......Page 105 Building a Microsite......Page 107 Line Up Inventory and Resources......Page 108 Auction Rules, Registration, Payment, and Delivery Options......Page 109 Determine Pricing Strategy......Page 112 Increments, Reserve Prices, and Minimum Bids......Page 113 Design the Offering with Categories, Key Words, and Screen Art......Page 115 Scheduling and Timing the “Launch” and “Close”......Page 119 Early Closing and Antisniping......Page 121 Provide Entertainment Value......Page 122 Postsale Follow-up......Page 123 DoveBid—The Evolution of Capital Asset Auctions ......Page 124 Regal Distributing—Building Castles in the Big Sandbox ......Page 127 Fairmarket—The Evolution of a Fair Marketplace ......Page 130 Omaha Steaks—Getting to the Meat of It......Page 132 IronPlanet—A B2B Exchange Ready for Heavy Lifting ......Page 134 Ritz Camera—A Snapshot of Auction Experience ......Page 137 Interstate Bakeries Corporation—Baking Up E-Procurement Savings ......Page 140 6. Resources for Researching Your Auction Initiative 129......Page 144 Online Auction Users Association......Page 145 Auction Watch......Page 146 Auction Books......Page 147 C/NET Auctions (Community Model)......Page 148 EWanted (Reverse Auction Model)......Page 149 Teletrade (Phone Bidding)......Page 150 The Bloke In The Pub (U.K. Auction)......Page 151 VirtualFeedback......Page 152 Auction Maker (Auction Management Software)......Page 153 4. Search Robots for Auction Sites......Page 154 Aberdeen Group (Research Reports)......Page 155 (Industrial Chemicals)......Page 157 Manufacturing News (News Site, Directories)......Page 156 6. Specialty Topic Areas......Page 158 American Society of Appraisers (Pricing Data)......Page 159 Sotheby’s (Auction House)......Page 160 BuyMedia.com......Page 161 Exostar......Page 162 Parts Base......Page 163 Agriculture Online......Page 164 FarmBid......Page 165 NetSeeds......Page 166 Rubber Network......Page 167 Manheim......Page 168 NewMediary.com......Page 169 AssetTrade......Page 170 Global Capital Equipment Market......Page 171 The Halon Trader......Page 172 Wastechange......Page 173 MachineTools.com......Page 174 Elemica......Page 175 CheMatch.com......Page 176 ImageParts.com......Page 177 Trade Loop......Page 178 Free Trade Zone (PartMiner Direct)......Page 179 Need2Buy......Page 180 Mercadium......Page 181 TradePower......Page 182 Enron Online......Page 183 Intercontinental Exchange......Page 184 World Oil......Page 185 TradeWeb......Page 186 ecFood......Page 187 FoodService.com......Page 188 SellMeat.com......Page 189 Onvia.com......Page 190 thebenefits.network......Page 191 Dream Weaver Foundation......Page 192 Transora......Page 193 PackageX......Page 194 IHB—Internationale Holzboerse......Page 195 Biz2Biz Plastics......Page 196 58K.com......Page 197 Printbid.com......Page 198 Worldwide Retail Exchange......Page 199 e-Transport.com......Page 200 Global Freight Exchange......Page 201 Logistics.com......Page 202 e-MaterialCut......Page 203 ComAuction.com......Page 204 Min-X.com......Page 205 The Bandwidth Place......Page 206 Solutions Providers/Aggregators of Marketplaces......Page 207 VerticalNet......Page 208 7. Getting Beyond Being a “One-Trick Pony” 195......Page 210 Search Engine Optimization......Page 212 Direct E-mail and Direct Mail......Page 215 Viral Marketing Promotions......Page 217 PR and Publicity......Page 218 Clicks vs. Conversions......Page 219 Create the Best Experience......Page 220 Generate Trust......Page 221 Fulfill Orders and Exceed Expectations......Page 222 Get Permission First......Page 224 Automate Customer Response on the Web......Page 227 Using Loss Leaders Effectively......Page 232 Using Reserve Bids......Page 233 Moving Beyond Price......Page 234 Retiering Pricing Models: Apples vs. Oranges Online......Page 235 1. Bundling/Unbundling Products......Page 236 2. Enhance Brand Value or Product Value......Page 237 3. Add Service to Your Offering......Page 238 4. Add Speed to Your Offering......Page 240 5. Be Alert to Arbitrage Opportunities......Page 241 Raising Revenues by Serving the Community......Page 242 Raising Revenues by Cutting Costs......Page 244 How Fast Are Manufacturers Moving into the Auction Space?......Page 245 How Fast Can You Stay Ahead of the Curve?......Page 247 Special Section: Navigating the Online RFQ 237......Page 252 Receiving and Transmitting Specs......Page 253 Using RFQs to Troll for Job Leads......Page 256 If an Idea Is Right, Large Communities Can Be Built Overnight.......Page 258 Facilitate Your Community......Page 259 Think Price, not Brand......Page 260 Where Hype Has Met Reality......Page 261 Fixed-Price Selling Still Works......Page 262 Forget Old Product Life-Cycle Models......Page 264 The Global Economy Is Here......Page 265 Even Consumers Are Going Global......Page 268 Emerging Technologies......Page 270 Index 281......Page 7 Sealed Bidding......Page 274 If at First You Don’t Succeed . . .......Page 275 Are You Eligible to Work for Uncle Sam?......Page 276 Getting Started in Government Reverse Auctions......Page 278 The Caveats of Reverse Bidding......Page 279 1. File the Standard Application Forms......Page 280 3. Get Your Information Straight......Page 281 Agency mailing lists......Page 282 Five Strategies for Working the GSA Schedule......Page 283 Government Contracting Terms— Definitions and Abbreviations......Page 284 How to Use Online Auctions to Slash Your Company's Costs--and Dramatically Expand Your Marketing ReachOnline auctions have emerged as today's most efficient tool for businesses to streamline their supply chains and gain fast, economical access to millions of new customers. The Auction-App details how companies--from hometown mom-and-pop stores to multinational corporations--are using Internet auctions to find the best deals on goods and services while, at the same time, locating cost-effective markets for their frontline products and excess inventory. Let it show you how to tap into the online marketplace, and begin to enhance your organization's competitive stance today!Three reasons your business needs to take advantage of online auctions:1. Online auctions provide instant, low-cost exposure to new markets and opportunities.2. Auctions help you enhance brand loyalty and develop a brand experience among your online audience.3. It is virtually certain that your sharpest competitors are already there!As you read these words, online auctions are redefining decades-old supply chain relationships and business practices. Many of today's largest and most successful companies--from Hershey's and Wal-Mart to IBM and Sun Microsystems--have made online auctions an integral component of their sales and supply operations.The Auction-App is the first book to explore the exciting new world of B2B and B2C online auctions from a marketing point of view. It shows you how to seamlessly weave online auctions into your company's sales arsenal, all in everyday, non-technical language designed to demystify this developing marketplace.Written by Leland Harden and Bob Heyman, two online auction pioneers who were early advisors to today's online auction success stories, this straight-talking business guide provides you with:Easy-to-follow techniques for moving your business into online auctions Explanations of the best software and services for taking part in e-commerce auctions Core principles for conducting successful auction business on the Internet, both as a buyer and as a seller Complete analyses of traditional auction methods--from English and Dutch to Reverse and Reserve--and how each have been adapted to the online environment Case studies and insights from decision-makers who have increased their profit margins through understanding--and utilizing--online auction technologies The Internet is an integral part of today's business dynamic, and market leaders--or those who want to replace the leaders--can't afford to overlook any interactive Web opportunities. The Auction-App will show you how to retain an airtight online connection with both your customers and your suppliers, instantly cut expenses and increase revenues using today's online auction marketplaces, and seamlessly integrate online auction selling and buying into every aspect of your company's daily operations. Publisher Fact Sheet A detailed look at how companies of all sizes and specialties can boost their bottom line, liquidate inventory, create new customers and do market research by using online auctions Since their inception, online auctions have largely been viewed as a consumer-to-consumer venue where people go to sell treasures from their attic to other junk junkies.