Do you think a new “BUY NOW PAYS LATER” online auction can be success?

Question

Hi guys.
Please share your advice today to us. We love to hear your advice based on new Online Auction site which will start soon, but before we start we like to hear from you. Please see more details below, before you write your advice to us.
We are planning to start a new online auction site, exactly same as eBay but will be much better and easy than eBay. The reason we like to start this auction to help people who have got difficulty with their finance.
Our mission is to add a new feature in our online auction which is “BUY NOW PAY LATER” where those who have got difficulty with finance will be able to buy any things they like and pay later by add some interest.
For example, if a seller want to sell his phone for £50,
The seller can get his money straight away after the buyer receives the phone and happy.
We pay to sellers the total amount which is £50, if buyer credit check is met the credit requirement and choose “BUY NOW PAY LATER” option.

Buyer bought the phone, and he chose the “BUY NOW PAY LATER” feature which its mean he wants pay later for the item in 3 months instalment. See below
See how its work.
• 1 months instalment which is weekly £15, total £60 (for above example customer chose this option)
• 3 months instalment which is monthly £21.70 total £65
• 6 months instalment which is monthly £11.70 total £70
• 9 months instalment which is monthly £8.34 total £75
• 12 months instalment which is monthly 6.70 total £80

NOW CAN YOU TELL US WHETHER THIS NEW AUCTION CAN BE SUCCESSFUL AT THIS BAD TIME WHERE EVERY ONE HAS DIFFIFIUTLY WITH MONEY? WE LOVE TO HEAR FROM YOU.
Three options available on NEW AUCTION SITE WHICH IS “BID NOW, BUY NOW, BUY NOW PAY LATER, REMEMBER THE TWO OPTION WHICH IS BID NOW AND BUY NOW are to pay straight away to seller,
Each buyer based on Credit check before they choose “BUY NOW PAY LATER” option for an item.
NOW WE NEED YOUR ADVICE. PLEASE HELPL.....................!!

Answer 1

This could work, but you will want to base your business model on not being paid for a certain percentage of the payments, so the items that are being sold need to be high profit margins (like digitally delivered goods). Also, you would want to have those listing and selling items assume some of the risk.



You also may want to find a partner organization that is responsible for extending the credit and collecting the payments over the long-term and in the short term you (as website operator) and the seller each get a smaller, guaranteed percentage of the total sale up-front and then the collection becomes the headache of the company that is extending the credit.



There are already companies online that are using the 'bill me later' model, so you may want to pay special attention to those. Best wishes!

Answer 2

You would need to be a registered credit company to do this. as soon as word gets around you will be flooded with bids. Often much higher than anyone would normally pay. They will all pass credit checks. You will legally be obliged to pay the seller immediately. You will receive no more payments from the buyer as they will have used stolen credit card information, payments from accounts set up just to do this kind of scam, and all the goods will have gone to addresses which are not real (shops and offices rented for cash for 1 month, then vacated). You will be banckrupt in 3 months and face investigation for fraud, as you will create a massive loss in illegal card activity.

Answer 3

Looking at the interest rate that you offer (£80/£50 = 1.6 -> 60% per year = 120% APR) the only people who may be interested in this service are those who are NOT going to pass the credit check. The ones who will pass the credit check are likely to have credit cards with considerably lower interest rate. So, as far as I see it, it is catch 22: those who want - can't, those who can - don't want to.

Answer 4

From a business standpoint, it wouldn't work. Though it does have some good points, but not enough to overthrow a giant like eBay. You have to differentiate yourself more because the market is saturated. Also, why would sellers go for your site when it increases their risk?



Just telling you how I see it dude. Cheers.

Answer 5

Yet another way for people to get deeper into debt. Just what the world needs to help it get out of debt.

Answer 6

Nope!

It might work for *** people who can't manage their own budget.