Noon launches online auctions on the marketplace
The ecommerce company noon launched last year and, according to reports, it is set to introduce a new online auction service within the platform. Reports suggest that online auctions will be a breakthrough as the new functionality will use the latest technology.
In the Middle East there isn’t much in the way of competition when it comes to online auctions. The market leader Souq.com has previously launched an online auction service but that apparently hasn’t proved to be a success and has been scaled back. Noon.com launched first in the United Arab Emirates (UAE) in October last year and then rolled out in Saudi Arabia a few weeks later.
So what will the noon auctions look like?
The bidding mechanism is currently being finalised. Noon has the advantage of partnerships with a number of local retailers – not just the large business houses but also start-up enterprises. These startups and SMEs are going to benefit tremendously from these online auctions on noon. There will be regular listings, reverse price auctions, Dutch auctions, flash sales, featured items – everything that will bring value to both buyers and sellers.
– Reported source
Investors in Noon.com include the Dubai billionaire Mohamed Alabbar and Saudi Arabia’s sovereign wealth fund. Collectively they have put $1 billion into the project. The business also plans to leverage existing assets from Alabbar’s Emaar Malls, Aramex delivery service and Namshi and JadoPado online marketplaces.
Souq.com was known as the “Amazon of the Middle East” even before its purchase by the Seattle based giant and now noon is squaring up to the dominant regional player. The Middle East is a nascent market with huge room for growth and it looks like online auctions are going to be part of that.