Auction items originate from a variety of sources including business liquidations, estate sales, and bankruptcies. While the premise of auctions has stayed the same for a long time, nowadays technology has begun to shift the nature of auctions. Online auctions through companies such as gsa auctions or openlane make up a sizable and growing portion of the multi-billion dollar auction industry. To reach an even wider audience, real-life auctions can be broadcast in real time over the internet using Simulcast. Using online auctions for auto sales has several advantages compared with traditional auctions, however there are a few drawbacks as well. Get the scoop on some of the pros and cons of online auto auctions.
Pro: Buyer Loyalty Enhancement
As online auto auctions can be accessed by people everywhere over the internet, the Simulcasts promote the vendor brand to many more people than possible using a physical auction. This can help get the best and most interested customers to participate in the auction.
Con: Increased Risk of Buyer Dependability
Along with the positive aspects of drawing a wider audience of bidders to an auction, the increased anonymity of bidders using auto auction software runs the risk to vendors of bidders not actually coming through on payments.
The real-time online auctioning through Simulcasts integrate the physical auction with the online bidders. This technology is convenient for interested customers who are farther away, but does not remove the physical auction component entirely. Companies do not have to decide between online auctions or in-person auctions; they can have the best of both worlds.
Con: Transporting Auctioned Goods Long Distances
While online auctions may draw a crowd from farther locations, because auto auctions deal with very large products that may be difficult to transport, often local bidders who would be able to attend in person end up getting a better value in the auction anyways.
Pro: Ability to Preview Items Up for Auction
One nice feature of online auctions through openlane is that the car auction software allows potential bidders to preview the items for about a week before the auction, enabling them to look over information, build interest in items, and place proxy bids.
Online auto auction companies like openlane allow automotive dealers in North America to purchase and sell wholesale automotives. Many vendors have had great success with online auto auctions as they offer a convenient alternative to auction hall events and allow vendors to reach more customers. However, there are still some issues with the online auction format. Please share your thoughts or experiences with online auto auctions!