Online Auctions: From Products (eBay) to Experiences (Sweemo)

Consumer goods, Internet & media

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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.