E-commerce website of Dutch auction mode

The auction, in which the lowest price is obtained, is also called the Dutch auction, which is an auction site that allows sellers to set the highest selling prices rather than the minimum bid. In short, the product began to fall from the high price, according to the pre-set cycle of decline and decline, the first bidder to obtain the purchase of products. This kind of bidding mode does not need many times bid, as long as who first bid, that commodity is who. This is undoubtedly a challenge to the psychological bottom line of consumers.

Whether on Taobao or on ebay, I believe we have been involved in the purchase or auction experience, in accordance with the usual style, this type of auction mode is from low prices to high prices shout, know the deal so far. In fact, think carefully, this auction mode success rate will be how big? Consumer psychology is to buy cheaper products, rather than bidding with others, so unless your product is indeed very valuable, is a rare product, otherwise the probability of a deal is not high. Because you're not tmac, and you're not selling Chevrolet limo. Based on such a situation, a new concept arises: Dutch auction (Dutch Auction).

What is an Dutch auction? You can refer to Wikipedia:Dutch Auction or Interactive encyclopedia: Dutch-style auctions

The first perception of the concept is a new online E-commerce auction site Pricefalls, a auction site that allows sellers to set the highest selling price rather than the minimum price. In short, the product began to fall from the high price, according to the pre-set cycle of decline and decline, the first bidder to obtain the purchase of products. This kind of bidding mode does not need many times bid, as long as who first bid, that commodity is who. This is undoubtedly a challenge to the psychological bottom line of consumers.

Auctions are actually like stocks.

In fact, I think that whether it is a British auction (that is, a traditional auction model) or a Dutch auction, it is actually copying the pattern of the stock market. Isn't it?

British auctions similar to rising

The British auction is the pursuit of a product, these products are basically rare items. In order to get this treasure, everyone at all costs to a higher price, until the final product of the highest bidder. This model is very similar to the stock market, when you think that there is room for increase in the stock, there will be new capital entry, the stock price gradually pushed higher. Of course, the final result is different, the highest price of the product is not necessarily a loss, but the highest point in the stock buy must be silly.

Dutch type auction similar to short selling

The world knows the price of goods is falling, but where will someone bid first? This is no one can know, so this model is basically testing the psychological affordability of consumers. Because if you don't buy at this price, chances are that another consumer will buy it. This is similar to the stock market of short selling mechanism, when will it fall to a low point? When can a large amount of money be entered and raised before the jump? In fact, psychology is really everywhere.

E-commerce + Dutch auction

Recently a friend to participate in entrepreneurial innovation competition, I gave such a suggestion, "e-commerce + Dutch Auction" mode. Of course, this is not my first, see pricefalls after the understanding of this model, in fact, this model in the country should be regarded as innovation, because any replication of foreign successful mode in the domestic use can be called innovation (hehe, complain about the domestic environment).

Pricefalls recently won $40w's seed money, proving that the model will be favored and more or less worthy of investment. In any case, this pattern will be a bright spot. However, the bright spot is not necessarily the prospect is infinite. Of course, there is no denying that this model can be profitable and can be developed, but it does not seem to be a big deal.

As for the profit model: In fact, the profit model of E-commerce is the membership fee, intermediary fees, landing fees and so on. And Pricefalls canceled the landing fee, only charge a certain percentage of the amount of commission. This is undoubtedly the most important and clear mode of profit, in addition to value-added services, advertising can be used to become the site's profit model.

However, the biggest bright spot of this model is also its biggest weakness, the threshold is low, the pattern is easy to copy. Not quickly occupy the market, establish a corporate brand, it is easy to be a competitor.

The best way out for the Dutch auction in e-commerce

In fact, I think the best way out is not in a newly created E-commerce site with the concept of speculation, but as an existing E-commerce site a good supplement. As a matter of fact, the main mode of communication is mainly based on price, auction can only be used as an auxiliary form. Individuals think that this model alone is difficult to become a climate, but as a supplement is just good. Eaby can try to use the Dutch auction, monitoring the effect, so that the auction model to be popularized. As if I think Taobao open shop than independent of the advantages of the same, marry into the Giants than independent alone has a unique advantage.