An eBay alternative launches at Overstock Auctions
EBay has some new competition in the form of p2p auctions just launched on Overstock.com. Accessible through a new auctions tab on the site, Overstock’s auction marketplace features listing fees it says are 30% lower than eBay’s and it offers fee discounts on volume listings.
Overstock auctions also incorporate a twist on social networking, with the idea that establishing a degree of personal connection between buyer and seller–even if one step removed–can increase confidence in the buying decision. The auction page offers users the opportunity to build personal networks from the site. Registered users can invite friends online to join their network. When viewing an auction listing, users who have established a personal network through the site can click a link to see whether the seller of the item is connected in any way to their personal network. When the user clicks on the link, it opens a window that shows how the user is connected through his network with the seller. If there is no connection, that’s indicated.
Every auction transaction at Overstock also builds a business network, separate from the individual personal networks, that is visible to any auction user. Users can check the business network connections of any seller to see which auction users the seller has done business with, and how they rated the seller.
The business network shows an individual`s rating on a scale ranging from two thumbs up to two thumbs down. Personal networks have their own unique ratings system, rating individuals on a 5-star scale. Participating in personal networks is optional–visitors can bid on auctions without creating a personal network or joining anyone else’s. By contrast, every completed transaction is added to the business network, and unlike the personal networks, it can be viewed by all.
In addition to an on-site promotion that will award $50,000 to the auction user who builds out the largest personal network by the end of October, Overstock, No. 28 in Internet Retailer`s Top 300 Guide to online retailers, will support the launch of Overstock auctions with a radio and TV ad campaign.
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