E-commerce company noon, which launched last year, is set to introduce a new online auction functionality within the platform in cooperation with government entities in the UAE and Saudi Arabia, Arabian Business has learnt.
A source close to the development said online auctions on noon will be a breakthrough as the new functionality will use the latest technology.
Online auction is not new to the region; a few start-up companies were launched in the past decade, many of them not hitting the mark.
Another e-commerce player Souq.com had launched online auction but the functionality was closed shortly after. Its site now states that “it is not an auction house nor a bank, and does not offer auction or banking services.”
In the region, online auctions are successfully held for vehicle number plates as well as in art, with global houses such as Christie’s and Sotheby’s recording strong business traction in the Middle East.
“But when it comes to retail, we do not have a credible local player,” said the source, not wanting to be identified. “It is estimated that about 30 to 40 percent of the share of global ecommerce is accounted by online auctions.”
The source said the advantage of noon’s online auction functionality will be that “business is conducted in the region – with buyers and sellers in the region having easy access to the product.
They do not have to wait days together for the auction and then again for the product to reach them. Everything will be quick, and most importantly, transparent.” More
By Andy Sambidge arabianbusiness.com