New online application lets businesses create their own auction sites for free

[July 26th 2000]

Businesses can now add an online auction capability to their existing Website for free, thanks to edeal Services Corp., a global online auction technology provider. edeal has unveiled the AuctionEnabler, the first online auction application accessed free via the Web.

Industry Standard magazine recently reported that 10 of the top 15 Web sites are auction sites or have an auction component. A recent study by the Boston Consulting Group found auctions currently account for 20 per cent of all online retail sales. Forrester Research projects online auction revenues will total $19 billion by 2003, with business-to-consumer auctions capturing 66 per cent or $12.5 billion of those sales. An April study by Harris Interactive reports an estimated $644 million spent at online auctions in the first quarter, a 33 per cent increase from the last quarter of 1999.

While large businesses have benefited from the explosive growth of online auction sales, customized auction site development costs that can easily exceed $150,000 have put this market far out of reach for many businesses. Since it is free, the AuctionEnabler removes these barriers for small and mid- sized businesses to enter the fast growing, competitive e-commerce market and allows them to offer a branded, online auction on their Website.

"edeal spent extensive time talking with our customers, monitoring the online auction scene's progression and researching the trends associated with fast growing markets, including the rapid expansion of dynamic pricing across all types of industries," said Colin Webster, CEO of edeal Services Corp. "A free 'do-it-yourself' application, the AuctionEnabler was created in response to the overwhelming demand for online auction solutions."

Online auctions have evolved much as e-commerce storefronts have. Like storefronts, creating an auction site was once a laborious, costly and time consuming process, but today users can access the technology for free via the Web. At first, the cost to business of building their own auction site could be as much as $1 million. Then proprietary software evolved, which brought the price down to a one-time purchase fee.

Recently, businesses turned to application service providers (ASPs) to create, host and manage their auction sites, which lowered the cost even more - - to an average of $10,000 a month. However, it is still a lengthy, involved process that can take up to two months and requires dedicated resources from the customer and ASP. edeal's AuctionEnabler eliminates all these unnecessary steps with an easy, six-step process that takes about 30 minutes. Users at all technical levels -- from the novice to the skilled Webmaster -- can use the technology.

The AuctionEnabler's customers also get instant exposure on edeal's Network of independent auction sites. The Network links edeal customers to the fast growing e-commerce market with thousands of buyers, sellers and auction sites operating in the business-to-consumer, business-to-business and consumer- to-consumer arenas.

The AuctionEnabler also gives users the tools to control their own auctions, from branding and identity to instant inventory management. For example, one innovative feature makes it appear that users are not leaving the "dot.com" domain of the company, often a concern for many enterprises focused on the importance of branding. Businesses also can save the cost of developing secure payment methods by letting edeal handle all aspects of the financial transaction, including instantaneous conversion of over 300 currencies, escrow service, credit card authorization and deposit of payments.

edeal auction users pay between 1.25 to 5 per cent on completed transactions only. If there are no sales, there are no charges.

Links
edeal		http://www.edeal.com