Auction site starting with parallel importing handsets

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14 posts

Geek

#144104 7-Jul-2008 21:15

johnr:
some businesses can do amazing things. I have seen an auction firm go from 0-60% market share in just one year, and that is with a monoply in the market already plus a client base over 700million...........

Please provide us with names this is just figures that look like they have been pulled out of your backside

Not sure if anyof you heard of taobao or alibaba(worlds largest b2b website),both are owned by the chinese firm alibaba and heres a quick description http://startuplay.com/2007/06/08/alibaba-cto-john-wu-the-story-of-taobao-ebay-and-china-internet-boom/

As I cannot find a english version of the story between taobao and ebay I have to just tell the story....taobao opened in 10/05/04 and by that time ebay had already dominated the chinese market however in a years time taobao had about 60% of market share while ebay had only about 30 something, As of 2008 taobao owns just over 60% market share and 30% for ebay while another 10 percent is owned by a few smaller auction sites.

freitasm

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#144107 7-Jul-2008 21:18

Yes, I know all about that story. There's a huge difference there though.

eBay doesn't know the Chinese market. They had no idea and dominated the market until some local came with a better knowledge of how things work there.

It's very different here. Trade Me knows the market really well because they they are locals and do a good job.

This is completely the opposite situation and the odds are reversed.

Safree

14 posts

Geek

#144111 7-Jul-2008 21:23

Finally found some figures. Look here http://www.marketwatch.com/News/Story/Story.aspx?guid=%7B94C55336-156D-4045-A29A-E06D75A8EA2E%7D This is dated April 5, 2005 and taobao had already 40% market share, by the end of year it was around 60....

Safree

14 posts

Geek

#144114 7-Jul-2008 21:28

Actually eachnet was not part of ebay until 2004 and prior was completly chinese owned, you'ed except they would have a pretty good idea of the chinese market. Yet they still failed???Why???because 1)they were charging rediculous fees 2)because they did not allow easily accessiblly escrow services.

I know ebay also tried to enter NZ market in 2002(or something like that) but failed, Morgan commented that it was because they did not understand the NZ market, but I think it was rather because they did not see NZ profitable enough(back then anyways) afterall, even trademe had only 100000 clients and only become quite popular in 2005(according to wikipiedia)

sleemanj

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#144122 7-Jul-2008 21:34

My Trademe user number is three digits and starts with a 1. I expect that many others here have similarly brief user numbers. In other words mate. You're preaching to the choir if you are trying to tell us Trademe history.

---
James Sleeman
I sell lots of stuff for electronic enthusiasts...

Safree

14 posts

Geek

#144140 7-Jul-2008 21:46

Hi sleemanj

Im not trying to tell u the story of trademe, but what I am trying to say is that do you guys not see a need for change, we know that a monopoly doesnt benefit the consumers, which is why we've had pretty low internet speeds up until the recent 2-3 years where there has been unbundling going on and more ISP's entering the market. why not do the same for internet auctions??

freitasm

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#144145 7-Jul-2008 21:49

Safree: Im not trying to tell u the story of trademe, but what I am trying to say is that do you guys not see a need for change, we know that a monopoly doesnt benefit the consumers, which is why we've had pretty low internet speeds up until the recent 2-3 years where there has been unbundling going on and more ISP's entering the market. why not do the same for internet auctions??

There's a big difference. We all see need for change all the time.

But your business proposition is to create an auction site that would use the iPhone fever as a way to lure buyers. But then what? Is that it?

What is your business? Importing and selling handsets or running an auction site? Since you don't know it yet how could you seriously think there's a chance to take on the dominant player in the market?

Even your way of asking for information was wrong. Your subject on this discussion was "CHEAP IPHONES?" with capitals, before I changed it. Like spam and asking for people to look on something related to the phones - not to an auction site.

Get what I am saying now? You don't know which business you want to run, yet.

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Safree

14 posts

Geek

#144153 7-Jul-2008 21:54

Yes, as you have said correctly, I am using the iphone hype to start my business however I already have (somewhat) of a working plan detailed in my business plan for this project to work long term.

tonyhughes

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#144189 7-Jul-2008 22:51

Hi guys

Hi.

I'm starting a new business

Excellent.

(mainly auction website)

BWAHAHA x37

Oh wait - this is not the Joke Thread. You are serious. Oh dear.

How much cash/finance do you have? High 5 figures, or low-mid 6 figures?

and am thinking about importing some 3G Iphones from US or HK to sell on my website.

How are you going to launch an auction site and manage to offer these cheaper than every other guy offering them at cut-throat prices?

Don't know wheather you guys would accept it or not.

Guess.

Of course the phones would be cheaper than vodaphone NZ

My grandmother could import and sell phones cheaper than "vodaphone NZ" (sic).

($200+24month plan on atleast $40 a month=$1200) and thats a minimium.

How much airtime, SMS, MMS, coverage, service, stores, helpdesk, data speeds and megabytes are you offering? What prefix is your network going to be? I thought you were building an iPhone webstore? Oh wait - no - a Trademe-killer?

I sure am confused about now.

I'll tell you what - if you can sell me an iPhone for less than $200 on a 24 month contract, and beat Vodafones offer for voice, SMS and data, I will look at buying 1337 iPhones from you.

Im guessing the cost of parallel importing would be $600-$700

Which is it?
$600?
$700?

(not sure yet :-S)

Ya think?

and its not locked onto vodaphone NZ meaning you can use it world wide. Of course the iphones would be properly configured to take advantage of all vodaphone live 3G features etc.

So your tests on the iPhone 3G parallel import have been successful? Excellent.

I guess what I am asking is wheather anyone would be interested in this kind of business or not

Interested as a customer?
Interested in investing?

and weather anybody would buy one from me.

It's a pity there is no poll feature on Geekzone - I bet there would be an overwhelming conclusion.

Of course my main idea is not for importing iphones

So what's all this about iPhones then?

rather working on my auction website

Ohhh... that again.

(I'm planning to do better than Trademe...hehe....

Seriously?

I think you need to evaluate your objectives.

I know of exactly four auction type sites that I think are serious money makers - most have strong financial backing, all have excellent ideas, excellent implementation, and all have good business sense behind them. None will ever get anywhere near Trademe, but are instead aiming to fill niches.

which charges rediculous fees such as the recent 20cent charge for reserve prices).

I support that move. Hidden reserve auctions are a relic of days gone by.

If you want to slow the market and alienate your buyers by not being upfront with pricing, then pay 20 cents. A very easily avoidable fee, and most sellers selling bulk cheap items dont use hidden reserves anyway - they are generally looking for instant "Buy Now" sales.

If anyone has any comments or suggestions or would like to help my business etc please leave a message.(some funding would be greatTongue out)

My comment would be (and feel free to throw my words away, as I do not know you, or your circumstances), but it appears to me that:

* You probably have no capital (At least under $15k, but probably more like $15.00).
* You may not have the business or marketing skills required to understand, implement, maintain, and bring to success, a business like this.
* Without the above two, a business is still possible, but you need a 'killer' idea. This is something you do not possess.

uh...vodaphone is a ripoff???haha...they charge rediculous prices..A N95 for example costs around 700NZD while at vodaphone its about twice the price, plus you get the extra benefit of it being locked onto vodaphone so you can use global roaming when you go overseas so they can charge you a rediculous fee.

This is not a new revelation to NZ consumers.

The idea to bypass this sales channel is not a new revelation to NZ businesses.

Just the other day I had to top up another twenty dollars because I was charged for accessing wikipedia on my phone via 3g which was supposed to be "free until 27th July" what turned out was that I accessed wikipedia using wikipedia.org rather than their link and therefore I had to be charged.....

johnr: And the charging is your error not Vodafone! So no point taking a dig at them.

Support is OK....I can get apple certified to work :-)...

Meaning what?

as for the second part about going against trademe....well...some businesses can do amazing things. I have seen an auction firm go from 0-60% market share in just one year, and that is with a monoply in the market already plus a client base over 700million...........

Others have covered this, I just want to re-iterate:

This is New Zealand. This is not China.

We do not even have 7 million citizens, let alone 700 million clients.

If you think you can compare eBay screwing things up in a foreign market, compared to you trying to pwn Trademe (or is it Vodafone you are trying to pwn?) then you do not have enough business sense to carry on. Honestly. Thats not an insult, it's free advice.

You seem unaware of even the correct spelling and capitalisation of the name of the telco you are going up against (and I use that term loosely).

as for wikipedia......accessing wikipedia.org via phone automaticly redirected me to the cellphone version

That was wikipedia doing that, not Vodafone. You still only have yourself to blame.

Not sure if anyof you heard of taobao or alibaba(worlds largest b2b website),both are owned by the chinese firm alibaba and heres a quick description http://startuplay.com/2007/06/08/alibaba-cto-john-wu-the-story-of-taobao-ebay-and-china-internet-boom/

As I cannot find a english version of the story between taobao and ebay I have to just tell the story....taobao opened in 10/05/04 and by that time ebay had already dominated the chinese market however in a years time taobao had about 60% of market share while ebay had only about 30 something, As of 2008 taobao owns just over 60% market share and 30% for ebay while another 10 percent is owned by a few smaller auction sites.

Great - come and pwn Fairfax. They do not speak the language here, nor do they understand how to do business in Western society (let alone in the South Pacific). Show them how Australaisian business is really done.

Im not trying to tell u the story of trademe, but what I am trying to say is that do you guys not see a need for change, we know that a monopoly doesnt benefit the consumers, which is why we've had pretty low internet speeds up until the recent 2-3 years where there has been unbundling going on and more ISP's entering the market. why not do the same for internet auctions??

People are not resistant to positive, worthwhile change.

I cannot, however, see that being offered in this thread.

Yes, as you have said correctly, I am using the iphone hype to start my business however I already have (somewhat) of a working plan detailed in my business plan for this project to work long term.

iPhone is NOT going to launch your business. Seriously.

I may very well take some flak from some of the more conservative people here (Don't waste too much breath - I am whatever you say I am), for what appears to be me 'bashing' you and your idea - but honestly, I am trying to offer some words of advice - unless you have a killer idea (and nothing in here is so far), and lots of cash (>$50k), then you do not have a real business idea.

What is your company name?

Cheers
T

portege

188 posts

Master Geek

#144218 8-Jul-2008 01:08

Mate; I think that I probably could earn more money by bringing back a handful of 1st gen iphone back to NZ upon my return from the UK.

Maybe you could try that first??? They are going at £120 for a brand new 16gb

Safree

14 posts

Geek

#144295 8-Jul-2008 09:52

Hi tonyhughes

thanks for your deep analysis. For funds, I have said that initial startup needs 20K and Iv got 10K rightnow

. Some angel investors will make up the rest. Currently I'v spent about 1K of my own money developing the website and the name is the same as my username.

As for Porteges idea, Iv already been there and done that. I brought some 1st gen iphones when I went to china at the end of last year(although iphones were never realeased there...hmmmmm) and sold them, Made up $600 for the two I brought..which saved me about half the flight cost....good idea...

Safree

14 posts

Geek

#144358 8-Jul-2008 10:16

Also, if you do happen to bring back some iphones, I would happily buy them off you....

Holden74

32 posts

Geek

#144520 8-Jul-2008 11:59

give the guy a break hes probably just a young fella having a go - good luck for your venture Safree

Safree

14 posts

Geek

#144531 8-Jul-2008 12:07

yay!! someones finally supporting my idea

RalphFromSnap

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#144805 8-Jul-2008 17:31

Tony! be nice to the poor guy. If you want to trash his ideas, why not pop past his place on Tristram St in Hamilton to give him a wedgy, or give donate a verbal bashing on 02102226... nevermind, that's just mean.

If i can give you 1 tip... be careful what you put on the internet.

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