As a entry level investment, I like the potential I see in HiBidder.com. After my telephone interview with Rich Esbensen, HiBidder's owner, I came away with one thought emblazoned in my mind... "Mighty Nice".
Rich makes a strong impression as a man who knows business. He's experienced in direct sales and he knows his way around servers and hardware. Rich started up HiBidder with some good basic hardware and a solid business plan. Since January of 2006, his site has established itself mostly by word of mouth, and HiBidder has nearly 28,000 item listings to show for it. HiBidder's current active membership is building beyond 2400 and Rich states that they are currently enrolling new members at a rate of over 200 a month. Given the fact that most of these members are sellers who were displaced from another online auction site, I would expect that they're a group of seasoned veterans who know what customer service is all about.
HiBidder's fee structure is easy on the brain and very easy on the wallet. There are no membership or listing fees. You only pay for what you sell. It costs just .10 cents for selling an item with a value of up to $100. It costs .45 cents for sales valued between $100 and $500. You may sell items valued up to and beyond $10,000. The maximum fee you'll be charged at this time is a paltry $1.75. Rich's formula for keeping seller's costs so low is that all HiBidder's server space is owned by Rich himself. Rich also is fielding two other online sales venues, BidorSell.com and YourHighBid.com .
When asked about security measures, Rich made it clear that he pays special attention to that. Every new member is individually ID verified for a fee of $1.00. Anyone who declines the verification fee is still checked out but they don't get the benefit of having proof of verification disclosed to the community. Rich said that so far they've only had one unsavory business dealer whom they've had to put out.
HiBidder has eight volunteer community support staff members trained by site experience. Rich stated that he expects to have five full time employees around the end of the year. With an estimated page view load of 3 million from March through the end of this year, I think he'll need those added employees. I was curious if outside investment for some media advertising might speed HiBidder's growth... Rich made it clear that what his clients want, his clients get. I'm betting that would include a well funded media blitz. You may seek investment opportunities by starting here.
Disclosure: My wife, Anna Sattler does do business on HiBidder.com
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Reader Comments (Page 1 of 1)
11-14-2006 @ 6:39PM
Michele said...
Here is a site to watch... Of all the viable options I personally checked out after 7/19, HB has become one to watch... The member base is growing steadily, even after some setbacks in early September... In fact, the community there is strong, vibrant, seasoned (several Powersellers grace the boards) and the most helpful I've ever seen... The only thing the site needs is more sellers, in my opinion... More product... When selling on both eBay and HiBidder, I would see my items show up in Froogle first through HB, which is important to the success of a seller... From an investment standpoint, this auction site is pulling away from the pack and is going places:
Read more articles written recently about this "Little Guy":
http://preview.tinyurl.com/tcqhk (auctionbytes.com)
http://preview.tinyurl.com/ym88p8 (associatedcontent.com)
http://preview.tinyurl.com/yfke5h (ecommerce-guide.com)
What I did not know was that there were 8 volunteers that make everything happen; this is amazing... Their forum boards are highly active and you would not know the whole site is being policed and protected by so few (See, it can be done!)... Although, being a member there is like being in a "family"... And family businesses have the drive and will to go somewhere... There is an integrity on this site that gives it a foundation to build into a major enterprise, while still focusing on it's core customer (read: seller)... Another good article, Gary, and one for bloggers to watch and see...
I'm rooting for this Little Guy, and I'll put money on that...
11-15-2006 @ 11:13AM
Erin said...
Gary - a great article, well written and gives insight into this site and where it's been. I look forward to follow-up as this site continues moving forward.
According to an article written this week in the Journal Gazette on 11/13 - "Forrester Research projects the U.S. online auction market will grow to $65 billion in 2010 from $28 billion in 2005.
Still, eBay’s format doesn’t work for everything and everyone. A September online survey of 1,225 people conducted by the Web site AuctionBytes.com found many who sell on eBay want to leave for other sites.
“EBay sellers vote with their pocketbooks,” says Ina Steiner, AuctionByte’s editor. “Right now they’re being squeezed on both ends – higher fees and lower prices."
So - there is room in this market for new contenders, and I'm one that hopes HiBidder is a viable contender. It's got a solid foundation, a solid committed group of customers (sellers), and is managing solid growth in all key metrics - members, auctions, items sold,pageviews, etc. - stats. available from the home page.
I'm of the opinion that ebaY selected the wrong go-forward strategy with the most recent changes in their business model. As an online buyer and shopper, when I want 'it' - I usually want 'it' now. When first joining the plethora of online shoppers, the auction platform was fun and exciting! But, this phase on e-commerce has matured and finding great deals with the ability to buy-now is more appealing to most/many.
By offering both, for free, Hibidder caters to both sellers and buyers. Buying and selling is 'fun' againon Hibidder, and affordable choices exist for both sellers and for buyers.
I've watched the ebaY culture evolve over the last several years. The small sellers, which made ebaY what it is, are often much more customer focused than the large sellers that have flooded the site. Smaller sellers rely on sales and repeat buyers, while the larger ones typically have other avenues for sales. If they ship slow, have incomplete descriptions and/or slow or no customer service for issues - it doesn't break their business model.
However, the smaller sellers that started on ebaY and don't have resources to expand significantly survive on exceeding customer expectations. These folks are the ones that have been forced 'out' of the ebaY business model, as profits have been significantly reduced or wiped out with the current fee structure and the change in the business model.
I'm excited to see alternative sites as competition in any industry is healthy and good for consumers. HiBidder.com sounds like a viable up-and-coming site within this industry, and the well-written article above gives me hope!
11-17-2006 @ 11:10AM
Barbara said...
Gary - A wonderful article. I think the owner of HiBidder, Rich, has a true sense of what it takes to run a successful online selling site. He actually cares about the success of sellers doing business at HiBidder.
Because of that, the site attracts experienced sellers & as mentioned, a very dedicated volunteer support staff. That combination makes HiBidder attractive to new sellers also, who may need a hand getting their site up & running. They can rely on not only the unequaled support staff but also unlimited help for other sellers. In addition, Rich, the owner of HiBidder.com is actually accessible (almost unheard of in this industry).
For buyers the site is particularly attractive. Sellers are able to offer quality merchandise, at fair, reasonable & much lower prices. The dollars saved by sellers, listing at HiBidder.com is passed on to buyers and is obvious in the lower prices.
With Sellers & Buyers both winners, it's easy to see why HiBidder.com is growing daily.
11-21-2006 @ 12:20AM
Helen said...
Interesting read Gary. Never thought to check these guys out but I will do now.
As you say, the talent to compete with bid daddy eBay is certainly out there. But, while the competitors remain so small and fragmented, can any of them really break that dominance?
12-18-2006 @ 11:48AM
Albert said...
I truly like HiBidder.com and would like to see it marketed as an alternative to eBay. I am new to eBay and was turned off right away by what other, more seasoned, small sellers were telling me: That the magic was gone for eBay, that everything now is volume and pricing fees. I started doing auctions as a hobby so it was real nice to see HiBidder.com pop up as a serious (we hope) contender for the eBay crew. Keep going! (And don't sell out Rich!)