First Free Online Application Lets Businesses Create Their Own Auction Sites - Company Business and Marketing

EDP Weekly's IT Monitor, August 7, 2000

For the first time, businesses can now add an online auction capability to their existing website for free. edeal Services Corp., a global online auction technology provider unveiled the AuctionEnabler, the first online auction application accessed free via the Web. b2bScene, a division of Open Text, a leading supplier of web-based e-business applications, also announced it is including edeal's application in their suite of business-to-business solutions.

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 of 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.

Industry Standard magazine recently reported that 10 of the top 15 sites are auction sites or have an auction component. A recent study by the Boston Consulting Group found auctions currently account for 20 percent of all online retail sales. Forrester Research projects online auction revenues will total $19 billion by 2003, with business-to-consumer auctions capturing 66 percent 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 percent increase from the last quarter of 1999.