<< I have a problem with Onsale and any company that specifically targets business to business commerce with this auction format.>>
Actually, nuch of ONSL's business is already of the b-to-b type, since many of their current customers are small businesses. ONSL is acting as the middleman with the price determined through an auction.
<<Person to person auctions are worthwhile but applying the same model to business is not >>
Why not? Businesses are no more (and no less) price sensitive than individuals, although they are more sensitive to support issues. The type of equipment being auctioned need not be close out, could easily include support, and is already available in many cases through existing auctions. The advantage of the internet format is that the buyer never has to leave his office and doesn't have to play phone tag with the seller. It saves time, may save money, and is more efficient than many other buying formats.
<<First, onsl was intended to develop software that companies could buy to hold liquidation auctions of their own merchandise>>
That option is still available, as can be seen from the Yahoo relationship. Of course, it is also currently in use when ONSL sells on a consignment basis. So far, it looks like Kaplan has performed according to plan.
<<Then phase II was Onsl used this software they developed to consign inventory and hold the auctions themselves.>>
Obviously this phase has been carried out with some degree of success. The original reason behind moving away from consignments was to improve quality control over shipping, product quality and customer service, if I remember correctly. The drawback was that it added inventory control and obsolescence risks. I don't see this and the above goals as conflicting. They seem like natural extensions of having developed the software and the service.
<<Then (after seeing the ebay business model, I believe), onsl decided to make themselves into another ebay.>>
Of course, they found that they didn't have the traffic to compete with eBay on this level, and quickly found a way to still make this venue a revenue stream, and at the same time attacked eBay's dominance in the market by having them compete with Yahoo.
It seems to me that Kaplan has done an admirable job. The internet market changes so rapidly, that any company that DIDN'T change their business plan numerous times would be left in the dust. I see all those things as positives, not negatives. |
