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Entrepreneurs - Trade Me |
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Antique bottles, cars, paintings, domain names - just about everything you need can be found on Trade Me, New Zealand’s busiest website. The site was established in 1999 by owner Sam Morgan and has been sold to Australian media company John Fairfax Holdings for $700 million. Sam will continue to run the business for the next one or two years and will receive an additional $50 million if the company meets agreed earnings targets over that time. Growing Business
Based in Wellington, Sam rates the CityLink network and the IT infrastructure in Wellington as world class - Trade Me has 1.2 million members who are expected to host 35 million auctions in 2006. There are between 30,000 and 50,000 people on Trade Me at any time, 50,000 new members per month, and more than 500,000 items for sale at any time. At present there are 600,000 online auctions per month, more than 1500 categories to choose from and the average item sells for $50. Within the last year Trade Me has grown from 28 employees to 50. A New Zealand Website
Trade Me is New Zealand’s only online auction site. A site created by New Zealanders for New Zealanders, the company has already experienced the benefits of having the homeground advantage when eBay tried unsuccessfully to enter the New Zealand market in 2001. 'The beauty of Trade Me is that, unlike a shop, people can browse at any time of the day or night and because the turnover is so high there’s always something new to look at,' says Sam. 'It’s dramatically changing the way people buy and sell. One guy had a collectable shop, he’s since sold the shop and now does all of this business through Trade Me.' Selling & BuyingIf you have something to sell, you can list the item on Trade Me and specify the minimum amount that you want. Buyers can then place bids on your item. If they really want the item, they will try to out-bid each other. When the auction closes, Trade Me sends the seller and the highest bidder’s contact details to each other. They then get in touch to arrange payment and delivery. Trade Me has seen an incredible range of items. The most outrageous yet, according to Sam, was a lollipop actor Orlando Bloom from The Lord of the Rings sucked on at the world premiere. In case you’re wondering it sold for $80. 'Growth for Trade Me is likely to be existing users trading more,' says Sam. His success strategy has always been ‘start small and watch your costs’. The average user spends 14.55 minutes on the site and visits Trade Me six to seven times a month. The Trade Me website has launched a community of its own. One offshoot is Trade Me Angels - a small non-profit organisation founded by some Trade Me users that raises funds for traders in need. Trade Me Angels assisted the flood victims of the lower North Island - delivering trucks full of furniture, clothing, toys and food. 'It’s pretty humbling that something as simple as a website can do this.' Related LinksDepartment Details: |
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