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Auctions and Bidding Platforms Development
Want to create an auction site like eBay? Then, turn to Geomotiv, a trusted service provider with extensive experience in creating custom auction apps and eCommerce marketplaces. With our world-class online auction platform development services, you will be able to create fully functioning software with the right features to fit all your needs.
Looking to build a successful custom software solution? Our experienced development team is ready to assist.
Overview
What is an Online Auction Platform
An online auction platform is a marketplace that brings together buyers and sellers and facilitates transactions between them. Unlike traditional marketplaces, this type of platform is based on a bidding system. That means that a seller can list an item with a starting price to potential customers and let interested ones place their bids in real-time. Eventually, when the auction is over, the bidder with the highest price wins the item. Most of the online auction platforms work the same, though there are other mechanisms to consider. For example, buyers can compete and bid for the product descending or ascending orders, determined by the chosen auction type. In addition, you can create an online auction site using one of the popular mechanisms, such as English auction, Vickrey auction, Ticker auctions, and so on.
The platform’s goal is to establish and coordinate relations between buyers, sellers, and administrators. Therefore, it must support all three user roles and provide the functionality to facilitate their interaction and transaction with each other and the website. Thus, another crucial aspect is the design and navigation, which have to be intuitive and user-friendly. Someone creating an online auction website has an opportunity to market and sell various products to the highest bidder without mediators. So, if you want to make your auction sites like eBay or Listia, go with an experienced custom software development company like Geomotiv. Our team has built multiple eCom marketplaces and auction websites, and we are ready to work on the technical side of your solution.
Your Options
Custom vs. Ready-Made Auction Platforms
Custom Auction Website
Benefits
A purpose-built product around your needs and vision from the very beginning
Real-time data changes and high performance under increasing load
Fast loading times of custom auction websites and apps
Regular security updates and patches that reduce chances for intrusion
Shortcomings
Relatively high time investment throughout various software development phases
High upfront costs associated with hiring a professional development team with cross-functional technical expertise
Ready-Made Auction Platform
Benefits
Faster implementation with a broad ecosystem of business app patterns and easy-to-use proven solutions
Lower upfront time investments as there is no need to hire a team of developers to create an auction website
Quick installation and deployment and lower development and customization costs
Shortcomings
Limited choices for self-expression and lack of quick adjustments to particular scenarios
Lack of compatibility with customer expectations and limited choices for business development
Additional expenses to cover high maintenance fees
Listing Options
Different Types of Online eCommerce Auctions We Can Implement
English Auctions
An auction type where bidding starts from a suggested reserve price and proceeds with accepting bids in ascending order. The highest bidder wins an auction in the end.
Penny Auctions
In a penny auction, players pay a non-refundable fee to place small incremental bids. At the end of the auction, the last bidder wins and delivers the final bid amount.
Peak Auctions
This auction type operates on a limited number of hours or days in a week.
Free Auctions
The essential rules for this auction type does not imply that a bidder pays extra fees. But the winner of the auction bears the cost of the actual bid.
Ticker Auctions
In this format, placing a new bid resets the countdown timer for the auction. It takes place until no further bids are being input.
Buy It Now Auctions
Here, the buyers can acquire an item at the Buy-It-Now price, bypassing competitive bidding or choose an option to place a bid instead.
Beginner Auctions
The main principle of this auction type is to make it available only for new bidders on your custom auction website.
Seat Auctions
This type of auction implies granting exclusive access to the bidding process. For example, you can allow a set of participants to pay an additional fee to bid on the inventory.
Reserve Auctions
Here, multiple bidders can set a minimum price to let the auction begin.
Dutch Auctions
Dutch auctions start at a high price, progressively lowered until a bidder accepts the price. In this way, succeeding winners pay less for the remaining items.
Vickrey Auctions
The winners in this auction type are the ones who place the highest bid. But eventually, they have to pay the second-highest bidder price.
Double Auctions
The principle of this auction type is to enable bidders and sellers to submit their desired price to an auctioneer. The trade is executed when a match is between a buyer’s price and a seller’s asking price.
Sealed Bid Auctions
In this type of auction, no bidder knows how much the other players have bid.
Consequently, the winner pays the first highest price on the auction platform, though the lowest one can win in some cases.
eCommerce
Auction Software Development for Your Vertical
Food & Restaurants
Auction Software Development for Your Vertical
Automotive
Auction Software Development for Your Vertical
Art
Auction Software Development for Your Vertical
Real Estate
Auction Software Development for Your Vertical
Logistics
Auction Software Development for Your Vertical
Finance
Auction Software Development for Your Vertical
Luxury goods
Auction Software Development for Your Vertical
Charity
Auction Software Development for Your Vertical
eCommerce
Food & Restaurants
Automotive
Art
Real Estate
Logistics
Finance
Luxury goods
Charity
Monetization Models
Primary Revenue Sources We Can Implement
Fees for Sellers
Each time the vendors sell some goods through their auction platform software, they are charged a certain fee of the total sum amount. This revenue option serves as a primary source of income for eBay – the global auction platform that needs no introduction.
Insertion Fees
This monetization option presupposes charging a non-refundable fee to list an item or a category for sale on any online bidding platform. Then, regardless of whether that listing sells or not, the platform charges each vendor a different amount depending on the item’s category and seller’s status.
As a rule, sellers can publish up to 50 free items within one category per month.
Transaction Fees
This revenue option implies charging a fee per transaction and a percentage of the total sale amount.
For instance, most categories on eBay have a standard 2.9% fee on the final deal value and a $0.30 fee per transaction.
Membership Fee
This monetization strategy opens new ways for business promotion as it grants exclusive benefits for vendors in exchange for a fee. From training in e-bidding for sellers to receiving detailed analytics of their participation in various auctions, this gives a vital revenue stream for a custom auction website.
Are you looking to build an excellent auction website?
Then, partner with Geomotiv to overcome your web development challenges and create an outstanding product!
When forming the best eCommerce team structure, it is necessary to ensure the… Read more >
FAQ
Need Help? We’ve Got You Covered!
What is a real-time bidding platform?
A real-time bidding platform is a virtual marketplace where people can buy, sell, trade, and check out the inventory provided by multiple vendors. Multiple users can bid on a vendor’s list at any given moment, then the winning bid (with the highest value) is shown to the user. Through an online auction platform, bidders and vendors connect, and the selling process is executed.
How much does it cost to build an auction website?
To calculate the cost to develop auction bidding software, you need to factor in the functionality according to the requirements. On the flip side, consider the hourly rate of the development team. Here’s the approximate cost breakdown:
Feature
Time
Cost
UX/UI Development
42 h
$1,890
Authorization and Security
72 h
$3,240
User Profile
42 h
$1,890
Home page
84 h
$3,780
Search/filtering
96 h
$4,320
Product page
42 h
$1,890
Auction functionality
160 h
$7,200
Reviews & Ratings
48 h
$2,160
Shopping cart
64 h
$2,880
Payments
42 h
$1,890
Notifications
32 h
$1,440
Buyer, vendor, admin panels
372 h
$16,740
Total
1,096 h
$49,320
How do I start my auction website?
Step 1. Determine the listing type for your online bidding platform; Step 2. Identify the necessary user roles to meet project requirements; Step 3. Draft feature lists and functions for the website; Step 4. Decide on the type of software: template-based, SaaS-based, or a custom solution; Step 5. Find the best software development team with vast expertise in eCommerce; Step 6. Pay attention to online payment authorization and security; Step 7. Launch your auction eCommerce platform; Step 8. Promote your solution to target customers.
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