How The Web Helps Drive Live Auctions
Yet another instance of how the Internet can help drive offline businesses - the auctioneers were slow to embrace the Internet because it was considered competition, but its growth and development of searchable Web sites like AuctionZip have contributed to a increases in the live-auction industry. Sales of goods and services at live auctions in the US, reached $257 billion in 2006, a surge of 7 percent over 2005.
Part of this has come about through partnerships that produce bigger audiences for sellers, often by simulcasting live auctions on the Web, and buyers educated by the Internet, have tasted bargains and crave the thrill of competing in buying.
The intersection of live and virtual auctions promises nearly limitless opportunity, and the early adopters would be the ones to benefit.
Some retailers too are reaping the benefits of the intersection - ShopLocal, a Chicago-based firm that helps retailers use their sites to drive in-store sales, says that purchases researched online but made offline, in physical stores, are booming.
According to ShopLocal online-influenced store purchases have risen by about 50 percent over last year. In a recent report, Forrester estimates that almost $400 billion of store sales — or 16% of total retail sales — are directly influenced by the Web as consumers research products online and purchase them offline. This is expected to grow at a 17% CAGR over the next five years, resulting in more than $1 trillion of store sales by 2012.
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