If you have spent enough time in the buying cycle for industrial equipment, you have probably experienced buying used machinery on several online marketplaces. The second market for industrial equipment is growing, and buying used equipment online has never been faster or easier. Because of this, many companies are turning to these marketplaces to source used equipment. For more information on why companies are turning to the second market, visit Stop Sourcing New Equipment and Save Your Company Money.
It can be a challenge to know exactly which marketplace is correct for your business. Each of the major online marketplaces, whether it be eBay, Amazon, or Aucto, has its benefits and challenges. In this blog post, we will examine each of these in detail and discuss why each may be the right place for you to buy your used industrial equipment.
A marketplace needs active buyers and sellers to work. To better understand if an online marketplace will be right for you as a buyer, we must also take a look at the experience from the perspective of a seller. Buyers tend to follow the sellers in online marketplaces, as a site with little to no sellers presents limited variety to a buyer.
As discussed in 4 Things To Consider When Selecting An Online Marketplace, a key indicator of an used industrial equipment marketplace’s success is its number of users. With 25 million sellers and 165 million buyers, eBay is one of the Internet’s most well-known marketplaces. With over two decades of operation, it has established itself as a go-to marketplace for almost anything, including used industrial equipment. This substantial user base gives the site an extensive reach, granting sellers access to a large international buyer pool. Many individuals and businesses turn to eBay to sell equipment, particularly used or surplus equipment.
The biggest challenge with eBay is that it is not an industrial only marketplace. The sellers on the platform may not be experienced industrial sellers that completely understand the equipment they are selling. As a buyer, you need to make sure you do your research. Do not expect sellers to provide you with technical advice or fitment specifications.
Additionally, inspections are not the norm when it comes to buying on eBay. This often means you have nothing more than the word of the seller to go on.
Like eBay, the Amazon name is synonymous with buying and selling online. With 310 million active customers (this number includes both buyers and sellers), it is also one of the Internet’s most well-known marketplaces. First online in 1995, it was originally an online bookstore. It has since expanded to consumer goods and, more recently, industrial equipment. While Amazon has an established trust factor with items like novels and electronics, it is relatively new to selling used equipment.
As with eBay, a large customer base presents both advantages and limitations. Amazon’s primary disadvantage when buying used industrial equipment lies with its fixed price format. Eliminating the auction process means no bidding, removing much of the competitiveness. Prices tend to be higher on Amazon because they are determined by sellers and not buyers.
The second challenge with Amazon is its standards for sellers. On traditional marketplace like eBay, sellers have more control and freedom. They can customize the title, description, and most other parts of their listing. Amazon tends to be more restrictive, being very specific on how sellers present their items. For example, most used equipment does not have a UPC code. Without a UPC code, an item cannot be sold on Amazon.
With these standards, sellers are less likely to place their items on Amazon. Fewer items means less selection for buyers. As with eBay, Amazon is unfocused.
Aucto is an online auction marketplace. Like eBay, buyers are free to compete for a wide variety of industrial equipment and parts. Unlike eBay, Aucto is an industrial and commercial only marketplace. This fact eliminates the problem of having to sort through irrelevant items and categories, such as consumer goods.
From its inception, Aucto was created only to sell industrial equipment. The site is easier to navigate for sellers since all product categories are based on industries and industrial products. Most importantly, the site offers both liquidations and major auctions hosted by industrial auctioneers.
The challenge with Aucto is the limited inventory available on the platform. Since it is relatively new, the marketplace is still working on bringing more sellers on the platform. , At this time, it means selection is rather limited.
As a buyer, there are many marketplaces in which you can source used industrial equipment. There are both pros and cons to each one, which you have learned more about through this blog post. With this information, I hope you can make an informed decision about which is best for your next purchasing decision.