Less than five months in trading, the site has already seen extensive growth and the new auction platform has already attracted extensive traffic and the company believes that this will continue to grow over coming months, as more traders become aware of the auction mechanism.
Comments Paul Greenberg, chairman of Going.co.za, "Informal traders are buying surplus inventory from retailers, as they become increasingly aware that such platforms are a great way to invest relatively little money and resell inventory items for a significant profit."
The process for locating and arranging to buy surplus inventory in South Africa is somewhat fragmented but his company is giving small businesses access to inventory normally only available to well-connected traders and established bulk buyers.
Greenberg, who founded one of Australia's largest online retailers, Deals Direct, suggests that entrepreneurs and traders must identify potential markets for the inventory they wish to purchase.
"By assessing the potential to resell the goods in a short period of time, it is possible to determine if buying the inventory is worth the time and effort involved. Assuming small traders have access to consumer markets where goods can be offered with little difficulty, investigating the surplus inventory channel in greater detail may be worth your while."
Through the new auction platform, traders will have access to certain bulk products where they will quickly get a sense of whether or not the seller is willing to settle for a lower price. "Purchasers must ensure whether shipping or transportation charges associated with moving the goods are included in price bid."
Greenberg suggests that buyers must make an offer that is at the low end of what they think the site would entertain for the goods. They can then incrementally increase the amount of the offer as other bids come in. This will allow them to secure ownership of the goods for the lowest possible price, maximising the chances of earning a tidy profit upon resell. The site insists on cash payment and purchasers can immediately take delivery or move surplus to other African countries. "We are already selling product to Nigeria, Ethiopia, Kenya and Tanzania. We have found that there is a shortage of cheap product across the continent and, while South Africa remains a large market for us, we have been opening up trading lines into several African states. Several years ago exporting into Africa was seen as difficult and problematic, but now things are improving."
Once the seller releases control of the goods, transporting goods to a storage facility is far easier. Online auctions also enable its sellers to broaden their reach by offering variable pricing. "Auctions not only allow our business buyers to make bids on large parcels, but it also creates a more impactful sales experience."
The site will soon release enhanced item catalogue functionality to support this unique platform feature. The new development allows sellers to upload items directly to the site. Once the item has been uploaded, items can be shared and assigned to multiple auctions with a single click.
"Our sellers, largely retailers and distributors, are quite sophisticated in their approach to marketplace strategies and consumer engagement. Many have established their own informal networks of buyers. Now, sellers can outsource their surplus consumer goods activities and allow buyers one trading platform to deal with."
The site's online auction programming is designed to enrich the one-of-a-kind value its sellers have come to expect. Additionally, the most recent feature and functionality upgrades deliver greater audience participation, creating innovative ways for sellers to engage with motivated buyers. Sellers will soon decide the best time to run their own auctions and what products to feature. This level of functionality is unprecedented in the African surplus asset-trading environment.
"We've seen a tremendous surge in user engagement during the past several weeks and so we needed a way to streamline the whole auction creation and scheduling process for all of our sellers."
Collaborative e-Commerce is the established parent of new and better ways of thinking, leading to competitive advantages, increased ingenuity and ultimately, increased profits. With collaboration as the key driver behind the site's recent advancements, its users can expect easier connectivity between sellers, as well as a more simplified approach to quickly disposing of tricky stock into the market.
For more information, go to www.going.co.za.
