Given the incredible popularity of online auctions, along with the reality of human ingenuity and the perennial drive to build a better mousetrap, it’s not too surprising that there’s a robust new player in the online auction and global online shopping arenas.
In this case, the ingenuity factor has originated in Europe and the drive component has been provided by eleven world class entrepreneurs, all of whom reside in Dubai.
Starting about five years ago, they began laying the foundations for the world’s first “reverse auction house.” Over the next three years, they painstakingly created the highly complex infrastructure for this new global venture. This included securing the necessary agreements to make it operational in 160 different countries.
This new business has been operating for two years now throughout Europe, where it has been growing rapidly. According to recent reports, it now has 14,000 Licensees and 1.4 million customers there. Although, at this point, this is a mere “pimple on the nose” of the other well-known online auction house, with its 222 million customers, it’s important to recognize that the competition is nevertheless very real and that it has only just begun.
This highly appealing reverse auction shopping portal launched officially in the United States on October 4th 2008 and as of late November, it already had over 3,000 Licensees, a number that is projected to increase to around 14,000 by the beginning of the New Year. By the end of 2009 this number is projected to grow to over 40,000 licensees and approximately 3.5 million customers. And, by the middle of 2010, the company estimates that it will have secured 20% – 25% of the current net profits of its leading competitor.
So what possible threat could such a foreign upstart pose to a well-established giant? While it’s not likely that it will become the new King of the Online Auction Hill in the immediate future, it has some unique and highly attractive features that have already proven to be very popular in Europe. And it’s very likely that these will be equally, or even more, appealing to Americans.
First and foremost of these is the highly novel concept of a “reverse auction,” which has three variations. The first of these, called the “Xpress Auction,” entails “bidding down” the price of a product by 25 cents each time that a customer checks its current price; the second one, the “Zero Price Auction,” is actually a way to get high-ticket, brand name and brand new products at zero cost; and the “Unique Bid” auction is a time-limited auction in which the customer who places the lowest unique bid gets the product at that price.
The second highly novel and powerful feature of this new approach, which is in direct contrast to its competitor, is that it is marketed by a network of Licensees who share a hefty proportion of its profits. This model has now been proven to work exceedingly well in Europe and is expected to be even more successful in the U.S. where network marketing is much more widely accepted and better established.
Considering that the net annual revenue of the leading auction house is currently around $8.5 billion dollars, these network marketing Licensees are strongly motivated by a highly attractive financial incentive and will, no doubt, become an increasingly powerful growth factor for the reverse auction business.
For anyone who is interested in learning more about this new global online shopping option, either as a potential customer or as a possible network marketing home business, extensive information is available at the website below.