Online Auctions: From Products (eBay) to Experiences (Sweemo)
eBay has pioneered the concept of online auctions where people buy and sell goods from and to each other. As discussed in How to build any business model with only 10 blocks, companies can change a business model by moving from products to services or experiences – keeping all other transactions the same. The evolution of online (peer-to-peer) auctions is an excellent example:
Online product auctions: eBay.com
Online product auctions like on eBay.com bring together buyers and sellers, and take a listing fee or commission on successful transactions. This is a straightforward example of the broker business model, which in principle does not change when moving to transacting services or experiences.
Online service auctions: Zilok.com
On Zilok.com people can rent anything from anyone, from a nice heater to party cooking gear. The transaction is not the ownership of a product, it is the service to use it for a period in time. Myngle.com is another example of online service auctions, bringing together teachers and students on a global language marketplace.
Online experience auctions: Sweemo.com
As a next step, Sweemo.com enables people to buy, sell or swap special experiences or “sweet moments” (after which the UK-based start-up is named). In their own words: “Sweemo is the live auction community where people come to trade real-life experiences”. The auctioned experiences range from a role on a soap opera to an exclusive safari, a backstage pass or a look behind the scenes of a reality show. Experience sellers pay a commission on the final selling price.
More revenue model examples and inspiration:
Great little article.
Just a slight correction on the Sweemo business model – there aren’t any fees to list on Sweemo. The only charge is a commission on the final selling price.
Thanks for sharing Jay.
Good article thats informs the consumer about the different types of auction sites available online and how certain ones compare to business models.
If you still need a guest narrator on this topic let me know. I run my personal internet site with comparable information and thought possibly we could swap expertise… It might benefit us both!
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