Saying it is "doubling down" on providing tailored solutions for customer segments, eBay has taken a minority stake in online auction company bidadoo. While the two companies have had an 18-year partnership, the investment takes things to the next level, says Howard Hawk, bidadoo president.
For eBay, the deal was prompted by the rapid transition of the heavy equipment industry from in-person to online transactions experienced during the pandemic. "By harnessing the capabilities and experience of bidadoo — the largest industrial seller on the platform — eBay can offer end-to-end transactions that are more transparent and efficient, while boosting buyer confidence in their purchase without having to see an item in person," says Chris Prill, vice president of eBay Motors, North America.
The companies estimate the value of the highly fragmented used equipment market at $50 billion to $60 billion.
"EBay and bidadoo are primed to meet this demand head on by connecting global buyers with equipment sellers through a seamless, industry-leading experience," Prill says. "Professionals can not only discover high-quality equipment, parts and attachments, but also enjoy additional protections including machine evaluations and demos, eBay’s Business Equipment Purchase Protection (BEPP) and a 100% satisfaction guarantee."
bidadooFor bidadoo the deal "will add new value to both buyers and sellers," Hawk says in comments to Equipment World. The two companies will remain separate although the brands will be brought closer together to show that "while it's still bidadoo, we will have the the full power of the eBay platform, and bring more of their tools into the marketplace," he says.
First up will be a "significantly expanded" field sales and solutions team along with marketing activities across all eBay channels, Hawk says. Another focus will be rolling out technologies and solutions that take advantage of this multi-channel retail, wholesale and auction approach.
Buyers will see a lot more inventory plus added retail options, Hawk says. There will be more items offered on a "buy it now" basis. Sellers also will have more remarketing options. The inventory boost will come from the variety of used equipment channels, including dealers, rental companies, governments and utilities along with companies in the transportation and agricultural markets.
Bidadoo will also be rolling out additional buyer assurance programs "to further enhance buyer trust and give them the transparency they need to make intelligent buying decisions," Hawk says.
During Q2, bidadoo says, it saw a 65% increase in new seller accounts — those using its platform for the first time — over Q2 2020. And today's hot used equipment market prompted a 15% to 30% increase in pricing and demand in several asset categories. It also notes it's selling bigger equipment: its average sales price per item rose more than 75% in the quarter compared to Q2 2020.
"We track ourselves against a live auction model," Hawk says. Bidadoo says it gets around 1,700 views per sale item, which it says is about 17 times more views per item versus a live auction platform that has simulcast online bidding. "The activity level is pretty astounding," Hawk says. Bidadoo now has more than 63% mobile participation.
Currently, 70% of bidadoo's inventory is construction equipment, Hawk says. The company is also a presence in used truck and trailers. "But we will be investing in transportation, agriculture and equipment that comes through banks and lending institutions," he says.