Metropolis* Transactive Holdings (Metropolis*), today announced a strategic alliance with AucorActive, part of the Aucor Group, Southern Africa`s leading auction house.
The Metropolis* Business-to-Business (B2B) strategy has been to introduce industry-specific buyers to sellers by providing them with online communities, equipped with sufficient content and commerce needed to make online transactions.
"We are now extending our e-commerce offer by enabling buyers and sellers within our communities to transact online, at prices negotiated within an auction forum," said Jason Xenopoulos, CEO of Metropolis*.
Market research has shown that excess inventory in the targeted industries is valued between 10% and 27% of their potential output, more than half of this is due to a lack of demand.
"In effect "sellers" in these industries have problems finding "buyers" for their products, as the South African market is so limited for such industry-specific products. Together with Aucor, we will empower companies with an alternative sales channel resulting in a greater reach to a larger target audience," continued Xenopoulos.
Online auctions provide an efficient marketplace where buyers and sellers can trade excess inventory and second hand equipment. This mechanism allows them to deplete their excess stock and increase their cash flow.
Buyers and sellers can browse the auctions free of charge and place bids on items offered. Sellers can advertise on the community site and a transaction fee will only be charged once the items have been sold. Transaction fees are determined on a sliding scale based on the value of the goods sold.
"We see Metropolis* as the leader of the African B2B marketplace and we are extremely excited about working with them," said Brian Winterstein, CEO of Aucor Active. "The synergies between Aucor and Metropolis* create a unique service in Africa, with excellent growth potential."
"Furthermore, the Metropolis* strategic alliance with VerticalNet in the USA, extends the Aucor alliance so that it allows buyers and sellers worldwide to trade their goods within an auction environment specific to their industries," concluded Winterstein.
The sites should be live by the end of June.