A New Opportunity for Auction Fans Means Opportunity for Entrepreneurs
Written on October 12, 2009 – 4:46 pm | by admin
One of the first true dot com enterprises to score a direct hit for web based commerce was the profoundly popular and profitable online auction portal, Ebay. With its meteoric rise to commercial success, Ebay’s model was often emulated, but never duplicated in terms of financial success. It is no surprise that there would be sites that followed, each offering different spins on the online auction concept and one of the latest newcomers is DubLi, an internet auction site that offers a unique reconstruction of the basic auction concept.
DubLi Auctions, a company founded in 2003 by Michael Hansen, began in Berlin, Germany. Hansen’s original concept was to offer auctions where the goal was to have the price of items drop lower as opposed to rising higher. Visitors the site are asked to sign up if they wish to bid on the various items offered for auction which are all brand new merchandise from major manufacturers such as Apple, Bose, Microsoft, Black and Decker, Cuisinart and other well known brands. Once visitors sign in, they purchase credits that allow them to see the price to bid on the items offered through the site.
Since auction prices are not revealed prior to the purchase of these credits, customers have an incentive to side up and with every customer who signs up, the cost of the item is lowered an additional 25 cents, plus the customers each have an opportunity to purchase the item up for sale. This ensures that the larger the group of customers interested in any given item, the lower that item’s price will end up being. In essence, the greater the demand, the lower the price of that item. Certain items do end up going for a price of zero dollars and thus are free to the auction’s winner.
Due to the rate at which the DubLi partners have achieved their success based on the international team of entrepreneurs who promote the site, hundreds of high quality products are now being offered and the network maintains that it will not only expand, but one day overtake auction giant Ebay in sales.