The image of a man behind a podium and holding a gavel when auctions are mentioned is a thing of the past.
The growth of technology, especially internet auctions, in the world's leading marketplaces is accelerating.
If you're considering including this sales tactic in your revenue growth roadmap. In that case, it's essential to understand how technology has changed auctions forever—and for the better—and anticipate how it will evolve in the near future.
The History of Online Auctions
To do so, we have to start from the very beginning.
Let's take a quick trip down memory lane and look at the events that gave rise to the modern auctions we know today.
Web Forum Online Bidding
It may surprise you that online auctions started way earlier than you think, in 1979, with CompuServe and The Source, virtual community boards, and emails. It was back then, with sellers posting descriptions of items for sale, minimum bids, and closing times.
The Introduction of Penny Auctions
In 2005, Swoopo introduced the concept of penny auctions. Penny auctions require buyers to purchase bidding rights before the auction begins.
During the auction, each bid increases the price by a penny, hence the name. Participants buy a set number of bids before the auction starts, which has a defined time limit. The highest bid when the time expires wins the item.
COVID-19 Until the Present Day
Recently, the COVID-19 pandemic, which restricted buyers' ability to attend in-person live auction events, fueled the current popularity of online auctions and, consequently, the further modernization of auctions that we know today.
Online Solutions: Today's Biggest Auction Technology Group
One way of looking at auction technology is subdividing it into groups or categories. For example, buy-and-sell marketplaces for second-hand items, a part of the circular economy, can follow a traditional in-person format but use technology for on-site bidding.
Arguably, the fastest-growing auction technology group is the online auction management software.
Loaded with end-to-end auction management features, these platforms support the entire auction process, from product listing to inventory management to bid tracking and payment processing.
How Technology is Transforming Auctions
In what ways is technology, specifically online auction software, redefining the implementation of auctions?
Bid Anytime, Anywhere
Perhaps the most significant value of online auctions is that they have broken down barriers to participation in terms of location and time.
Barring any restrictions in terms of shipping, bidders anywhere in the world can join and get access to more items. Likewise, sellers can cast a wider net and acquire more customers with this newfound global reach.
Curated Online Auctions
Curated online auctions deliver customized experiences to customers, building more meaningful user engagement and increasing sales.
For example, not everyone shopping for fine art is looking for classic paintings. Some may be looking for digital art, photography, or, recently, non-fungible tokens (NFT).
Online auction technology allows a company to host simultaneous curated online auctions. This diversification of offers caters to different groups based on their interests. It's a win-win solution.
For customers, it allows them to pick the events most relevant to them. For auctioneers, this hyper-targeted selling increases conversions.
"Portable" Bidding
It's common for bidders to start bidding on an item from a desktop website and then continue on a mobile app.
A disruption-free bidding experience creates a positive customer experience with the auction and the company itself.
This continuous accessibility fosters customer loyalty and results in repeat purchases. It also ensures that auctioneers don't lose potential sales.
Better Informed Bidding Decisions
The move to digital platforms allows buyers to research more about the items being auctioned off. Instead of relying solely on the auctioneer's spiel, online auctions let customers do their due diligence before committing to a purchase.
Safe and Secure Transactions
Payment security and privacy are other pros of online auction software. It uses top-notch encryption to protect it and the latest security measures to prevent data breaches.
Reliable technology solutions provide done-for-you services so a business can stay on top of the changing data privacy and payment security laws.
Adopting Auction Technology: A Step By Step Guide
Auction technology is here to stay, and it's wise for a business or organization to start thinking about using innovations to their advantage.
While every company would require a different implementation plan depending on its business model, internal capacity, and goals, common steps must be followed.
Evaluate Your Needs
What online events are you planning to do? Fundraising? Commercial sales? Long-term bidding?
What are your goals? Increase sales? Expand your presence in more sales channels?
Assessing your needs will give you a clearer idea of what features are necessary to accomplish your objectives.
Research Your Industry
There's a chance that a similar company is already doing online auctions in your marketplace.
Performing comprehensive market and competitor research will give you insights into what is currently working. This will help you point in the right direction on what technology will add the most value to your business.
Identify Your Team's Capacity
While choosing a technology that doesn't require a steep learning curve, you should still evaluate your team's technical capacity to maximize your software investment.
Ensure you and your team are on the same page to understand how this new technology will impact your day-to-day operations.
Check Your Budget
It's easy to be blinded by auction software's bells and whistles, which leads to overspending. Identify what you can afford—and be honest about it—before committing to a software purchase.
You can also take advantage of free trials to gauge whether you'll get value for money from your technology investment.
Auction Digital Transformation: Are You In or Out?
Technology is changing and will continue to change how auctions connect buyers and sellers. The faster you embrace this digital transformation, the faster you can reap its benefits.
Auction Anywhere with Basta
Basta is the #1 website hosting platform for auctions and fundraisers. It offers a centralized platform for inventory management, bidding management, team collaboration, customization, and more.
Basta helps you improve efficiency, save time, and automate manual tasks–all from one platform.
To get started with Basta, drop a message at hi@basta.app.
You can also sign up and enjoy a 30-day free trial.
FAQs About Auction Technology
Will small businesses benefit from auction software?
Yes, most online auction platforms have different products and services for companies of various sizes. Whether you're an enterprise, a small business, a nonprofit, or an individual creator, you can benefit from auction management technology.
What auction software will give the most flexibility?
Choose a software that's built on a headless architecture. This will give you the back-end to manage all your auction needs while giving you full user interface control.
What's a reasonable budget to spend on auction software?
There's no hard and fast rule on how much you should spend on an online auction management platform. It will all depend on your needs while balancing the features you want to get at a reasonable cost.
