Allegro – auction platform or online shop?
Posted on October 6, 2007 by Marek
Internet Standard published a very interesting article regarding Allegro. The content of the text is that Allegro becoming increasingly an online shop where you simply make a purchase, than the place where the goods are auctioned.
Every Internet user in Poland knows that the Allegro is auction platform. By far the largest in Poland, which is not even threatened by the global leader eBay. (The other thing that people at eBay responsible for entry into the Polish market does not realize how it looks, and believe that eBay brand itself will work on Polish Internet users. We know how much they were dissapointed).
However, an article in the Internet Standard gives food for thought. Does Allegro is still the largest auction platform, or may already primarily a giant shop, shopping arcade and in the way?
Over 82% of Allegro items sold in August were bought by users who have purchased products at a fixed price, no bidding, clear from the published report, “The structure of sales at Allegro.pl”, presented at the conference ecommerceStandard. (…) It is now clearly dominated by the sale of at a fixed price, both in terms of volume and value terms. In April 2005, the value of the goods sold through the auction amounted to 46.6%, while two years later is no longer a mere 20.9%. (…) Interestingly, the majority of goods purchased on the Allegro is the new items. Since not all terms of the vendor is able to determine the state of an object on the state tests Allegro products are indicative. The data show that in August, sold 73% of new products and 27% of old – we read in the Internet Standard.
In short, it looks like that. Users buy new products using the options “Buy Now“. Most do not buy through auction. I admit quite frankly that I did not think about this aspect of Allegro, but I do exactly the same. I participate in the auctions rarely, much more often make purchases with “Buy Now”. So what such purchases differ from shop-made at online stores where it is not possible to bid? Exactly that, in the Allegro can bid on a similar subject, does not always offer to cover (in the configuration Buy It Now and auction) but still. The difference is also included. Especially if you compare the range of traditional shops, but I think it is the emergence of these retailers offer the Allegro have changed the way of shopping. Vendors with traditional stores exhibit the same goods at Allegro at lower prices. Of course, there is still the cost of shipping, but sometimes even after adding this amount, the price of goods is lower. And of course time. And above all – time which is important for people working long (and this is known as quite a large group).
I am very curious how these forms of product will look like in a few months. You may find that most online shops have a competition where it is least expected or none at all. And so how Amazon react, which is preparing to launch the Polish version.
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