When it comes to e-commerce, few formats are more popular than the online auction. What's more, Jupiter predicts that online auction purchases in the U.S. will reach 6.5 million in 2002, a six-fold increase from the 1998 figure of 1.2 million.
Analysts say the online auction is the perfect way to clear out leftover or excess merchandise.
Online retailers will continue to have difficulty anticipating consumer demand for any one item. The format could significantly benefit retailers with an excess of items that have a fixed shelf life such as seasonal clothing or food. These items normally would be marked down significantly and sold as part of a promotional sale. By selling the items at auction, online retailers could well get a better price for the goods, plus reap the benefit of higher repeat-visits. Jupiter foresees a vast array of products being sold via auction in the future.