BayanTrade.com conducts 25 online auctions

BayanTrade.com, a Philippine electronic marketplace formed by the country’s six biggest conglomerates, has conducted 25 online auctions since its November launch, and expects to complete another 25, for a total of 50, by mid-February.

Savings for buyers according to Bayan-Trade.com officials have been as high as 50 percent.

Considered the country’s top business-to-business (B2B) company, BayanTrade.com was formed by the Philippine Long Distance Telephone Co. , Ayala Corp., Benpres Holdings, JG Summit Holdings, Aboitiz Equity Ventures, and United Laboratories.

Transaction volumes have ranged from P500,000 to P88 million, and involve a wide range of products: building and construction materials, print cartridges for printers, laundry services, office furniture, and telecom cables, according to Cherokee D. Chamorro, who heads the auction services department head.

Although most auctions have involved members of the founding consortium, Chamorro said one-non-consortium company a consumer products multinational – has participated.

"And we are presently working with a multinational technology company," he said, indicating BayanTrade.com’s determination to expand participation in the company’s auction service beyond its founding members.

"Our goal is to realize P3.5 billion in revenue flow through this year, and for non-consortium members to account for at least one third of that value," Chamorro explained, adding that buyers intend to realize an average of 16-percent savings.

If achieved, this will represent a dramatic increase from the P200 million in auctions recorded last year while the company was refining and implementing the service. Most of the projected revenue flows to and from actual auction participants. BayanTrade.com’s share in the revenue stream comes from variable transaction fees on sales volume, and a modest "listing fee."

While buyers have been pleased with the savings they have made by making purchases through online auctions versus traditional bidding, Chamorro says that sellers have also expressed satisfaction with the results. – Mary Ann Reyes