Chris Reddick (President and CEO of Clarity Ventures) and Ron Halversen (Vice-President of Sales and Marketing at Clarity) break down the process for large shipments from eAuction platforms.

Part 4 of a 6-part series (Return to Part 3)

RON: Let's move on now to the next one, and let's start talking about shipments for eCommerce auctions, because shipments is a big one. You want to kick us off on shipments? 

CHRIS: Absolutely, yes. So one of the things about shipments—and great job talking about the escrow piece and some of the mediation, I think that's a great way to explain it. The same thing really applies, significantly to C2C and B2B shipping overall, is that this is a complex area. [It depends] on what the categories are, what the niche focus areas are. Of course, dealing with something like automobiles or maybe container shipments, for example, is one that we see quite a bit intermodal shipments. It could just be LTL shipments even.

what is hipaa

CHRIS: But something that's rather challenging to ship, relative to just the UPS and FedEx and DHL or et cetera, type of integration, may be more complex. While this is similar to the payment side of things, it makes a lot of sense to think three to five years out. It also makes a lot of sense to investigate some of the competitors and see what they're doing, what's working. This is a huge opportunity whenever you think about where you want to go over time.  

If you're in a position where you can, again, make it easy for the users, provide a lot of value, and make it self-service, then this can be a kill point. This can be an opportunity where you win, where everyone else in your space just can't touch you. So that's really how we want to encourage you to think about it with shipping integrations.

what is hipaa

CHRIS: Now, with regards to shipping, a lot of our customers who haven't worked with us before, they're engaging with us the first time, what we find is that they don't know that there are logistics companies that have really nice APIs that tie into most, if not all, of the LTL shippers, a lot of international eCommerce shipping integration opportunities, even freight shipments with boats and trains. 

These can be significantly automated when getting quotes and getting lead times and actual shipping information to present via the API to the end-user in an automated fashion. For a lot of folks that are shipping heavy equipment or large purchases of different physical equipment, these types of things, they're probably used to doing manual shipping quotes.  

And this can be a pretty significant overhead, right? Somebody wins an auction, and they go to complete the process. Then someone from your eAuction team has to get involved. And Ron, you were talking about cars, whenever you were working with the Barrett-Jackson bidding process, and they would have a couple of shippers, or you could purchase and have your own shipping. But those were the options. And ultimately, this idea of having several options within the site and then possibly providing the buyer the opportunity to be able to conduct the shipping and/or the seller, depending on your space.

what is hipaa

CHRIS: These are opportunities that you probably want to evaluate and think about what the pros and cons are. Just to throw a few cons out there, if we allow the seller to fulfill the shipping directly, there may be scenarios where they're just paying for that and including options, you could get a varying level of service and varying level of support and possibly different levels of insurance coverage or ability to stand behind that shipping. 

If one seller uses one shipping provider that just doesn't do a great job, another seller uses a completely different one that's first class. How do you guarantee this governance or this standard opinionated stance within your eCommerce auction platform that guarantees that users are going to be able to trust that there is a certain standard that they're going to get when they're on your auction site? 

To me, that's really part and parcel with the niche owners is this idea, subconsciously, that whenever I'm buying on this site, I know who I can trust, I'm going to get X, Y, Z outcome. I know at least this is going to work. I may not get the best price in the world—or maybe I am getting the best price—but I also I know that the shipment is going to arrive and I'm going to be able to use the items, they are not going to be broken or significantly damaged without a resolution.  

I'm just curious if you want to talk a little bit, Ron, about some of the pros and cons that you've seen with having these different scenarios, setting up these different scenarios with different shipping providers. 

RON: It also depends on where the items are. Let's say you come to us and you have us do an auction site for you, but you do estate sales. Well, a lot of times with an estate sale, they'll bring you all the items. You'll house the items and you might have a brick and mortar and an online. So now all of a sudden, as each of these items sell and they have to be shipped out—if your team is the one packing up and shipping these, could you imagine if you allowed the seller to deal with shipping and you had 27 different shipping companies trying to show up and pick up one of item each. There's no way you could do it, right? So you would have to handle all the logistics, and that would be something in the governance, where the items are being shipped and who handles the logistics.  

And that's why Chris mentioned these logistics companies. Sometimes they're called 3PLs, handle all the logistics and shipping, especially when it comes to these intermodal shipping options. And Chris, I think what you're leaning toward is international, right? Because all of a sudden, it's really easy for a bidder to seller to come up and register, go through the verification process.  

But then what happens if the bidder that wins is in France? Now I'm not just shipping across the street to you, I'm literally dealing with customs and duties and VAT and GST and intermodal shipping. I'm dealing with 25 other things, and who said how much that's going to cost and does the buyer already know that? And did we tell them, did we have an API?  

Continue to Part 5 to learn about alternate ways to calculate shipping.