Informational Interview Presentation Michael Randel BUS313 March 26, 2015.
Auctions on the Web Presented By (in order of presentation) Frank TrovatoPayman Mahjoory Sara...
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Transcript of Auctions on the Web Presented By (in order of presentation) Frank TrovatoPayman Mahjoory Sara...
Auctions on the Web
Presented By(in order of presentation)
Frank Trovato Payman Mahjoory
Sara Radgens Mike Malia
Dan Muzich Rob Randel
Agenda
• Web Page
• Financials
• Merchant-to-Person Auctions
• Person-to-Person Auctions
• Case Study
• Conclusion
Financials
Sara Radgens
Comparison of Financial Data
eBay Onsale uBid
2Q Revenues (mil) (2) 38.18 81.38 45.59 2Q Net Income / (Loss) (mil) (2) 4.29 (11.84) (5.16) Shares Outstanding (mil) (1) 125.20 19.60 9.15 Stock Price (1) 92.88 13.75 18.44 Market Capitalization (mil) (1) 11,628.00 269.50 168.70
(1) As of August 5, 1999
(2) Preliminary figures for the three months ended June 30, 1999
Comparison of Closing Stock Prices
Survey ResultsYes No
Visited an online auction site? 11 04
Placed a bid at an online auction site? 03 12
Purchased from an online auction site? 02 13
Amount range $50 -$100
Age - 18 or under 1
19 - 29 4
30 - 39 9
40 - 49 0
50 and over 1
Merchant-to-Person Auctions
Dan Muzich
Business Auctions
• Business (or “Merchant”) Auction sites have a wide range of scope and purposes.– Most sites aim to offload excess inventory or
refurbished stocks of manufacturers. • Category started with computer products,
whose short product cycles created a lot of perfectly good “distressed inventories”.
– Generally, all sites aim to broker a connection between customer and manufacturer.
Market Size of Auctions
Ref: The Keenan Report, 10/98
An explosion of opportunity:
Predictions: By 2002, 29% (128B) of internet transactions will be conducted under auction format
1997 numbers:
Total Internet mkt: 12.9B
Auction mediated: 0.58B or 4%
1999
1999
Business to Customer• Come in many different flavors and auction styles
• Started with Computer products and diversified from there to a very wide variety of items.
• Examples
– General consumer products (OnSale.com, Ubid.Com)
– Wine (winebid.com)
– Travel(Priceline.com)
• Very short list of what is available- www.internetauctionlist.com tracks over 200 sites
• Similar to person to person, except items are usually much larger in scale and price.
• Prime example: VerticalNet (the eBay of category)– Serves 35 industry specific business communities.– Water, Power, Chemicals, Food and many more
• Items for bid range from equipment to services.• Another example: AdAuction.com
Business to Business
Customer to Business• So-called “reverse auction” where customer
solicits bids from businesses. Best bid wins.
• Example– Travel (travelbids.com)
• You list your itinerary, and travel agents bid against each other to fulfill it.
Person-to-Person Auctions
Payman Mahjoory
Person-to-Person Auctions• Familiarize yourself with the website• Learn as much about the seller as possible
Buyer Beware - New Seller/Buyer
Feedback profile of 10 to 99
Feedback profile of 100 to 499
Feedback profile of 500 to 999
Feedback profile of 1000 to 9999
Feedback profile of > 10000
eBayRatingSystem
Person-to-Person Auctions
User Profile from Yahoo!
Person-to-Person Auctions
• Fraud
• Contacting the Seller
• Escrow Service
• Price discrepancies from one seller to another
• Shipping costs
• Community
Auction Pitfalls• According to Fraud.org, online auctions were the #1 source
(68%) of complaints in 1998, up from 26% in 1997.
Person-to-Person Auctions
• Fraud
• Contacting the Seller
• Escrow Service
• Price discrepancies from one seller to another
• Shipping costs
• Community
Case Study
Mike Malia
Case Study
• Onsale.com holds “Index Express Auctions” daily from 9:00 AM - 8:00 PM (PST)
• All Items Start At $1.00
• Auctions Last for at least One Hour– Extended until there is no bidding for 5
minutes
• How will the bid prices look over time?
How are the bids going to go?
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0 10 20 30 40 50 60
Auction Demonstration
With Your Host
Mike “Auction Master” Malia
Auction Demonstration - Rules
• Bid starts at $1.00
• Minimum $0.50 bid increment
• Auction lasts at least 60 seconds– Ends when 5 seconds pass without a bid
For Auction: One Gourmet “Evening MBA” Dinner
How did the bids go?
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Case Study: Results
Rob Randel
9:00 AM Express Auction
$0.00
$20.00
$40.00
$60.00
$80.00
$100.00
$120.00
$140.00
$160.00
9:00 9:05 9:10 9:15 9:20 9:25 9:30 9:35 9:40 9:45 9:50 9:55 10:00 10:05 10:10
10:00 AM Express Auction
$0.00
$50.00
$100.00
$150.00
$200.00
$250.00
$300.00
$350.00
$400.00
$450.00
$500.00
10:00 10:05 10:10 10:15 10:20 10:25 10:30 10:35 10:40 10:45 10:50 10:55 11:00 11:05 11:10
11:00 AM Express Auction
$0.00
$100.00
$200.00
$300.00
$400.00
$500.00
$600.00
11:00 11:05 11:10 11:15 11:20 11:25 11:30 11:35 11:40 11:45 11:50 11:55 12:00 12:05 12:10
Sum of All Items
$0
$5 00
$1 ,0 00
$1 ,5 00
$2 ,0 00
$2 ,5 00
$3 ,0 00
$3 ,5 00
0 :00 0 :05 0 :10 0 :15 0 :20 0 :25 0 :30 0 :35 0 :40 0 :45 0 :50 0 :55 1 :00 1 :05
9 :00
1 0 :00
1 1 :00
Case Study: Results
• Not all merchandise offered was new– Most was refurbished
• Many off-brands were offered• The minimum bid increments for some
items was too large– Some items sold for less than shipping!!!
• There appear to be some bargains available to the savvy shopper
Case Study: Price Comparison
Item Winning Bid Web/Mail Order Price(s) SavingsADI ProVista E40 15" Color Monitor, Up to 1280x1024, 3 Year Warranty (New)
$120 $149 $29
128MB, PC100, 8ns, 168-Pin, SDRAM, DIMM Module (New) $91 - $101 $87 -$4 to $14
Yamaha CRW2216E Internal EIDE CD-RW Drv, Read 16x /Write 2x /Re-Write 2x (New)
$136 $164 $28
AIWA TD-A8000, Travan-4 8GB Internal ATAPI Tape Drive (New) $43 $183 $140
Fuji MX700 1.5 Million Megapixel Camera w/2X Zoom, 2" LCD & Free Floppy Adaper (NEW)
$406 $415 $9
64MB, PC100, 8ns, 168-Pin, SDRAM, DIMM Module (New) $51 $44 -$7
SyQuest SparQ 1GB External Drive, Parallel Port, FREE Cartridge, PC (New)
$91 $135 $44
Toshiba SD2109 DVD Player w/ DTS & Dolby Digital Output & Picture Zoom (NEW)
$251 - $261 $260 -$1 to $9
JVC GR-AX730U VHS(C) Camcorder w/ Color Viewfinder, 22-1 Zoom & Built-In Light (NEW)
$221 $337 $116
Future of Auctions• Auctions available for just about product or
service imaginable.
• Advent of broadband will bring “live” and “loud” auctions to the PC.
• Localized auctions to effectively market goods that are either perishable or too large to ship long distances.
• Third party certification of big-ticket items.
• Forrester Research: “Its only a matter of time before every retailer has an online auction.” Latest Example:
Concluding Thought for the Day
MBAs for Auction?