SalesBid becomes local e-success story

While a number of Internet start-ups have burnt their fingers in the South African market, e-commerce company SalesBid has proved that a market exists for workable e-commerce solutions which offer quick and affordable e-enablement. By tailoring their dynamic commerce solutions to suit SA's B2C and B2B market, SalesBid has signed-up more than 20 clients in just six months, among them leading brands Protea Hotels, Hertz Rent-a-Car and portals iafrica.com and IT-specialist site ITWeb.

The reason for SalesBid's success, says CEO David Bloch, is its workable dynamic commerce solutions which complement existing business processes and systems and allow companies to easily begin transacting online while maintaining their look and feel, branding and website address.

"SalesBid has filled a niche in the SA marketplace. Because of our low start-up costs, clients incur very little financial risk and, once they begin seeing the value in our solutions, they very often ask us to expand their online offering. Protea Hotels, for example, went online in June, placing rooms from seven hotels up for auction online. Such was the success of Protea's Roombid site that we have extended the dynamic commerce system to allow Protea's approximately 150 nation-wide hotels to post rooms for auction. Early in November a haggle system, which will allow instant gratification through online negotiation or bartering, will be added to Protea's dynamic online offering.

Hertz Rent-a-Car, added another dimension to its business by offering car rentals in the virtual environment. Other companies currently running B2C online auctions thanks to SalesBid, include iafrica.com, Rugby 365, Starlight Cruises and Cape Explorer.

In the B2B arena, Intersite Property Management Services called on SalesBid when it needed to sell prime government land to a closed buying group. Together they made online history by auctioning the land off on the net. "The decision to supplement the tendering process - which took place before the online auction - was made in a bid to remedy the lack of transparency in government tenders. The success of the first auctions, which raised over R20-million, means it is highly likely we will be called on again by the public sector to improve and complement the tender process," says Bloch.

But SalesBid is an Application Service Provider with a lot to offer in addition to auctions and it is fast proving itself a leader in developing online pricing technology. "We have been approached by leading companies both locally and abroad to develop dynamic commerce systems to suit both the B2C and B2B market."

Bloch says that they have also developed highly sophisticated syndication technology which allows clients' lots to be channelled to leading internet portals and specialist sites, thereby generating a far larger flow of traffic to the items on auction and ultimately increasing sales. "This has given us a good competitive advantage in the market. Syndication went live on iafrica.com in September and launched late in October on ITWeb.

"By adding this facility to portals, all parties benefit. The participating merchants get their goods and services exposed on a high traffic site thereby overcoming a key stumbling block of e-commerce - ensuring products and services are visible on the Net. It also enables consumers to bid and buy from a range of online auctions on one website, thus saving them the often laborious web surfing process," says Bloch.

A joint venture with Commerce One and an online partnership with Moneyweb have also done well to increase the exposure of SalesBid.

Bloch says that while the term dynamic commerce is becoming better known, for some it remains a mystery. "Very simply, dynamic commerce involves a range of transacting models which have one thing in common - the price of products is not fixed and buyers bid against each other or negotiate with the sellers until a price is reached which suits both parties. The most common example is auctioning but we have also developed a wide range of other flexible pricing options."

Bloch concludes that, following a flood of enquiries from overseas, he and his team will be visiting the UK in November - an exciting first step for SalesBid into this potentially lucrative market.