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Technology Stocks : Dell Technologies Inc. -- Ignore unavailable to you. Want to Upgrade?


To: DellFan who wrote (137071)7/20/1999 9:36:00 AM
From: Mohan Marette  Read Replies (1) | Respond to of 176387
 
Now Dell has found a way to make money off its competitors' computers, too.

DF:Something I found this morning on that auction thing.

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Dell launches auction site for used computers

Users can sell their old products made by any manufacturer for a $2 service charge

By Omar L. Gallaga
American-Statesman Staff

Published: July 20, 1999

Dell Computer Corp. already is the world's most profitable computer company.

Now Dell has found a way to make money off its competitors' computers, too.

On Monday, Dell launched dellauctions.com, a computer auction site where users can sell their own used goods alongside Dell's products. Round Rock-based Dell will make $2 every time someone lists an item on the site -- even a computer made by its chief competitor, Houston-based Compaq Computer Corp.

Riding the crest of high flying consumer auction Web sites such as Ebay Inc. and Ubid Inc., dellauctions.com had several hundred thousand hits in its first eight hours and more than 1,000 items up for sale, the company said. On the auction site, Dell is allowing, even encouraging, users to hawk used wares ranging from computers to Palm Pilots to keyboards.

While the site allows users to buy and sell their own goods, dellauctions.com is also a clearinghouse for the company's products -- many of which are refurbished or older computers that have been returned after a leasing period.

Dell is hoping visitors to the site will unload their old computers and peripherals and then click over and shop at dell.com, the company's flagship sales site, with their newfound cash.

"We're positioning ourselves as the first major computer company to offer auction services," said Robert Langer, director of dell.com. "It gives our customers another outlet to dispose of older machinery and take advantage of purchasing new products from Dell."

How lucrative can catering to the highest online bidder be?

Forrester Research Inc. estimates consumer auctions will grow from a sales volume of $1.4 billion in 1998 to $19 billion in 2003. And the makeup of auction sites will shift from predominantly person-to-person to business-to-consumer auctions.

James Carney, president of Bidder's Edge, a site that tracks bargains at online auction sites, said there are about 400 auction sites, but added that established companies such as Dell may have an advantage in attracting new business.

"The greatest growth is in the merchant side, in the stores," Carney said. "That business will be literally two-thirds greater than person-to-person bidding in the next 24 months."

A peek at the site Monday revealed that of the computers that aren't being sold by Dell, many were being unloaded by no-name computer vendors using the site to sell their own surplus computers.

For the first 60 days, listings on dellauctions.com are free. But after that, a $2 fee for listing an item applies to all products.

Langer said Monday the site exceeded expectations with minimal advertising and promotion from the company.

austin360.com