With an estimated $360 billion¹ in used equipment available globally, the used equipment market can be daunting. When you compound that with estimated global online sales of $1.7 trillion in 2015² alone, it is easy to see why some business leaders are still cautious about moving operations online. Even though everyone is doing it, there are many unknowns. Whether buying or selling, how you navigate the secondary equipment market can leave your business in the red or with capital available to reinvest at the end of the year.
WHY GO ONLINE?
Selling online opens your business up to a world of buyers. No longer are you a local company, but a global powerhouse. And, with the right tools, you can take your business from a 9-5 shop to a round-the-clock operation, without adding overhead. The result? More customers and higher revenue.
What’s more? Buyers across the globe demand online access to high quality equipment, 24/7. Most buyers are searching for a specific item, and will purchase that item at the best price, from the best sellers—whether found at a local equipment yard or halfway across the globe. Buyers no longer think locally when making a purchase. They are looking for convenience, quality, and price. And if that means logging on at 3 a.m. after a transatlantic flight and purchasing equipment from a yard located seven time zones away, so be it.
MAKING THE MOST OUT OF AN ONLINE MARKETPLACE
Many options exist when selling the equipment on your lot or your fleet. Knowing which one is best for your business can make or break your bottom line. Rather than just listing equipment for sale on industry websites, sell your inventory in a global online marketplace. Work with a partner that enables you to turn your business into an active 24/7 sales tool, converting visitors into buyers, and reap the benefits:
- Lead Generation: Capture contact information from engaged prospects browsing inventory on your site.
- Prospect Engagement: Ensure your marketplace partner offers an easy, automated way to communicate with prospective buyers.
- Remarketing Opportunities: Work with a marketplace that helps you generate a remarketing database to use for upselling buyers and future re-engagement.
A true marketplace partner will extend to your business all the benefits of marketplace participation, while allowing your brand to stay front-and-center. Work with a marketplace that excels in marketing, and has the capabilities to drive buyers to your inventory. Some marketplaces have forged strategic alliances with syndication partners, meaning your inventory will be seen by millions more potential buyers. Choose a marketplace that has the ability to significantly extend the reach of your inventory, without requiring extra work on your part.
Most important, only work with a marketplace that can deliver a sophisticated risk management system that will protect your business and ensure transactions—whether in the marketplace or through your site—are safe and secure. Demand more than a simple credit card verification, and ask for dispute resolution policies in advance in the event you ever need such assistance.
MAXIMIZE YOUR ONLINE BUYING OPPORTUNITY
Buying equipment online should be easy. But, if you aren’t purchasing in the right marketplace, you could be in for a rough ride. Buy in a marketplace that offers the following and you won’t be sorry:
- Flexibility: When buying equipment online, work with an online marketplace that ensures you can purchase how you want, when you want. Whether you buy at auction or directly from a seller, a true marketplace offers multiple ways to transact.
- Selection: Buy in an online marketplace that offers a wide selection of inventory available for sale. The more equipment for sale, the better your chances of finding what you’re looking for. And be sure the marketplace can provide you with an easy way to search for items.
- Security: Only buy in a marketplace that protects buyer data, vets its sellers, is PCI compliant, offers an integrated payment solution, and offers dispute resolution services.
- Experience: Choose an online marketplace that is intuitive and easy-to-use. Look for a provider with strong customer support availability 7 days a week. And look for a marketplace that has experience in selling the type of equipment you need to buy.
Buying and selling equipment in an online marketplace will allow you to grow your business in ways you never imagined. Take your business online and watch your bottom line grow. ■
Sources:
¹ Ritchie Brothers 2015 Investor Presentation
² eMarketer, Jan.2014
About the Author: As senior vice president of operations, Jason Nielsen is responsible for the oversight of Client Services, Logistics, Risk Management and Product Development teams, as well as Auction Payment Network (APN) for Proxibid, the world’s largest, most trusted online marketplace and selling solutions for excess inventory, bringing together asset owners of all sizes and buyers. For more information, visit www.proxibid.com.
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Modern Contractor Solutions – December 2015
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