SalesBid, the dynamic commerce solutions provider, has suspended its business-to-consumer (B2C) operations with immediate effect, and will instead concentrate solely on its business-to-business (B2B) arm, the company announced to customers this week.
"The company has decided to exit the B2C market because its investment in resources and administration has not delivered sufficient returns to justify a continuation. The market in South Africa really is not big enough to justify the effort," a company spokesperson said. "Moreover, the international consumer market is also saturated and large floated dynamic commerce companies are now focusing on B2B operations. The South African market for B2C operations has always been small and we would rather re-focus our business where the greatest potential lies".
It is still uncertain at this stage whether B2B operations will be conducted under the SalesBid brand, as the group is currently evaluating potential purchasers for the operation as well as a possible management buy out. Auction Alliance Holdings, the holding company of SalesBid, is looking at potential suitors.
"SalesBid started as an extension of our bricks and mortar operations and today is a full-scale technology house. It is recognised locally and abroad for its cutting edge developments in dynamic pricing, and has moved so far away from the auction Alliance core auction business, that we believe it fits far better into a technology company," said Auction Alliance CEO Rael Levitt from Johannesburg.
"Existing B2C customers have been given notice to find alternative dynamic commerce technology providers, but the company will endeavour to service them until such time as they do migrate to new technology," Levitt adds. "However we will not be taking on any new B2C customers."
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