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Stabroek News



Lack of trust chills online auction heat
published: Sunday | July 6, 2008

Avia Collinder, Business Writer

Local online auction sites do have a presence in Jamaica, but few are seeing profitable action and some have folded, a fact which appears to offer some justification to the position of some auctioneers who consider this type of marketing to be reinventing the wheel.

In the words of William Tavares-Finson of Tavares DC and Finson Realty in St Andrew, "EBay already exists."

Other local businesses with an online auction presence attribute market dormancy to the lack of trust among Jamaicans who are wary of doing transactions on the Internet.

active online auctions

At Sunday Business' count, there are at least five active online auction sites.

In May 2008, Melford Woolery, multilevel marketer in Montego Bay, orchestrated the online launch of DubliNetwork in Jamaica - the European equivalent of, eBay, which gives free auction listings to clients and is a more affordable e-commerce platform.

The response to the free offers at http://www.dublinetwork.com/4883, however, has been "lukewarm," Woolery admits.

Phillip Lee, co-owner of Banyan Creations in Kingston, has a shared experience.

"The website is more effective in creating brand awareness than in sales," he said.

Banyan Creations is a small company which manufactures local and poured scented candles and handmade soaps and lotions, as well as, canned souvenirs for weddings, including unity candles.

"They see the product and contact you directly. I have found it to be more of a promotional tool than an actual point of sale," said Lee.

Woolery attributes the lack of robust response to auction sites to the fact that few Jamaicans are Internet savvy, and that surfers are often turned off by the need to sign up for services.

Other disadvantages are the hours spent searching for the best deals, prices are not always the best, and the sometimes costly service cancellation policies.

Consumers also appear to be unsure about the quality of what will arrive at their homes, and are turned off by the lack of responsiveness to site queries that website operators sometimes take up to a month to address, if at all.

no phone access

Several also do not have a listed phone access.

Consumer response seems to be warmer at www.jamdeal.com, where both buyers and sellers can join in auctions and list products for free.

Music, furnishings and airfare deals on online auction sites also seem to be doing comparatively well.

One auction site, www.kayak. com, allows access to more than 140 websites at once to find the cheapest fares. Kayak does not book tickets but facilitates direct purchase from airline and agency sites.

Reggae Auction, at www.reag gae-auction.com, offers users the chance to buy and sell for free rare reggae vinyl records throughout this year.

fairly vibrant activity

Activity on the site, which claims to be the only online marketplace for collectors and original Jamaican music, seems fairly vibrant.

For Jamaicans, says Lee, the website is more for brand information.

"Jamaicans really prefer to eyeball their products prior to purchase," he said.

"We do get some calls and purchases from overseas. We thought we would have had more sales from online presence, but less than expected."

Not only are people hesitant to order online, some who take the plunge, end up getting burned.

"People have told me that they have ordered things online and are disappointed," Lee said.

be very careful

"It is not quite what they expect. Personally, I do buy things online, but I am very careful, because often what you see is not what you necessarily want."

Woolery believes the trust issues can be overcome through education about identity theft and how to secure against fraudsters. For example, he said, "If you do a debit or credit online, just ensure that no one gets your personal pin number."

He still has faith that online auctions will take off here, saying there are bargains to be had, and convenient means of shopping are offered.

much cheaper prices

"Auction prices are usually a lot less than what you go into a store and purchase. The item is also sent directly to your home. It is all round easier."

As for product-quality issues, his site, DubliNetwork, has a return policy, and "those who engage in misrepresentation will be banned", Woolery said.

Premier auction houses in Jamaica, CD Alexander and DC Tavares and Finson Realty, have chosen not to go the route of online auctions.

While Williams Tavares-Finson says local online auction sites could develop a niche market for arts and antiques, he believes eBay already has a lock on the broader market.

"The key concept is, don't redo what already exists," said Tavares-Finson. "I know of local companies, but I really don't think Jamaica has the volume of people to bid. The greater demand is in the diaspora, and eBay already exists."

avia.ustanny@gleanerjm.com

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