According to the IBIS World Market Research Report, the E-Commerce and Online Auctions industry is one of the fastest growing industries in the U.S. This growth is fueled both by the higher levels of disposable income and the increasing propensity of consumer’s conducting services online. As technology and connectivity continue to advance and improve, consumers will make more and more online purchases. These positive changes have led industry leaders to believe that industry revenue will also continue to rise over the next few years.
It isn’t just e-commerce that is benefiting from the growth of online auctions, communities can reap the benefits as well. The city of Flint, MI, for example, grabbed the attention of the media in late August 2015 when it cleared the way for an online auction company, LiquidBidding.com, to operate in what was formerly a paint-mixing facility. Flint-area businesses will benefit greatly from the large numbers of consumers that will seek out the company to pick up, inspect and drop off items at the auction location.
Liquidbidding.com is owned by two brothers, Jason and Barry Rusk. Their website auctions consigned items ranging anywhere from dishwashing liquid to chainsaws to bug zappers. The new company is up and running and plans on having auctions on Thursdays. Potential buyers are able to view the items that are up for bid at the business’ new location, 1721 James P. Cole Boulevard.
The items that Liquidbidding.com will be auctioning come from estate sale buyers and pawn shops with excess inventory. Other items come from individuals who do not wish to hold their own garage sale or do not want to sell the items online themselves. For now, the company plans to auction off items that fall within the price range of $400 or less.
Penny auctions are another type of online auction that has gained a lot of attention. Unlike other online auctions where bidders pay only when they win, penny auction bidders pay for every bid they make – even if they do not walk away with the item.Once the bidder has purchased their bid package, the bidding begins on the selected item for $0.00. The bid then increases by a penny every time a bid takes place (keep in mind the bid itself costs more than a penny).
The big attraction to these auctions is the opportunity to buy an iPad for $37, a 55-inch TV for less than $30 or a $1,500 laptop for $100. This arrangement is advantageous to both the consumer and the auction merchant. The consumer walks away with their items for much less than they could buy it anywhere else, and the auction merchant receives a large amount of bid dollars.Some of the most popular penny auction websites include: OrangeBidz, Madbid, HappyBidDay, and QuiBids.
At first glance, it would seem that online auctions are simple. Simple to use, simple to operate. However, the companies that run them must secure payment processing like any other online business. Despite the popularity and revenue these companies are experiencing, securing payment processing can be a real challenge. For example, penny auctions have been deemed high risk – almost on par with gambling – because of the number of scams and businesses that take advantage of consumers. Regardless of the fact that penny auction businesses are legitimate, traditional payment processorsrefuse to service them.
For the businesses in this situation, payment processing can be secured through an alternative payment source. For example, a penny auction business can secure a penny auction merchant account through a high risk provider.eMerchantBroker.com is the nation’s #1 high risk credit card processing company. Their services include offering penny auction merchant accounts, among many others.
Gone are the days where consumers have to go to auction houses to bid on desirable items. Through partnerships and entrepreneurial ambition, more and more auctions are going digital.Merchant account services from high risk providers are helping to make this happen. With online auctions helping businesses, consumers and communities alike, the future appears to hold continued growth and innovation for the e-commerce and online auctions industry.