The payment remains the crux of the matter in eCommerce in terms of conversion, as an extensive study by Sage Pay just recently proved, besides revealing that social media is currently one of the most popular marketing tools.
Online social selling has already revolutionized trading in dozens of business sectors, and Indoogoo is set to transform the $200 billion used industrial equipment market with Indoogoo Auctions.
Users have the ability to list any piece of equipment, large or small, and decide the timing and layout of their auctions. The site combines the ease of online trading with the networking opportunities of a physical auction, available through the industry's first social network.
In a move that has the potential to completely disrupt traditional trading in the industrial sector, Indoogoo empowers users, giving them the ability to stage and manage their own online auctions.
"With Indoogoo Auctions, everybody is an auctioneer," says Mark Turner, CEO of Indoogoo. "We want to give users complete control over their equipment auctions. Indoogoo is a social network, and this structure has never been incorporated into an online auction service. This could dramatically change how trade is conducted around the world. Indoogoo Auctions is available to all users, from individual traders to large manufacturers and rental companies."
Indoogoo Auctions works differently to existing auction facilities because it does not retain bidder information for its own use. Instead, this is given directly to the auctioneer, so they can contact unsuccessful bidders for potential further trades. Once an auction is complete, all bidders can interact through Indoogoo to ensure no trading opportunities are missed.
Users design their 'auction hall' according to their own brand, and select one of three formats for their auction, such as a timed 30 day auction, a day auction with reserve, and a day auction without reserve. They set the time, date and reserve price (if necessary).
Bidders interested in an item listed for auction send a bid request to the auctioneer. Once this is accepted, the bidder becomes part of the auctioneer's Indoogoo contacts. Each bidder can organize an inspection of the equipment directly with the seller. If the bidder is satisfied with the machine, they pay their bid deposit into an independent third party escrow account. The bidding process will proceed much like existing online auction models.
Bidders remain anonymous to each other until the auction is closed, and only the auctioneer can see everyone participating during the auction process. Once a sale is finalized, payment is organized through the escrow service.
Auctioneers pay a fully refundable listing deposit, and a sales commission is set at a fixed percentage with a capped maximum amount. Buyers pay no premiums on the final sale.
Indoogoo Auctions launches formally in the second quarter of 2015 and will feature equipment from construction, mining, oil and gas and other industries.