Should I Use Auction Software or List on Marketplaces? A Guide for UK Sellers
- Chloe
- May 29
- 8 min read
Are you trying to decide between using auction software or listing on online marketplaces? This guide will walk you through the pros and cons and ultimately show you why using auction software is the smarter move.
Before we dive into the specifics, let's briefly define what auction software and marketplaces are.
Auction software is a tool that allows sellers to host auctions on their own website, while marketplaces are online platforms where multiple sellers can list and sell their products.
With auction software, you're essentially given access to a platform that allows you to customise and control the auction process, while marketplaces have pre-set rules and regulations that sellers must adhere to.
There are, of course, many other factors that make the two different (and similar), such as scalability, first-time user experience, seller fees and more, which we'll delve into below…
Want to know how to set up a successful online auction? Head straight to our guide — How to Set Up an Online Auction: A Full Guide for UK Businesses — where we show you exactly what’s involved and how to get started! |
A Quick Breakdown…
Here’s a quick breakdown of how online auction software and marketplaces compare…
Factor | Auction Software | Online Marketplaces |
Audience | You build your own audience through marketing and promotion | Pre-existing audience already browsing the site |
Costs | Typically a fixed monthly fee or subscription | Commission-based fees per sale, plus possible listing fees |
Branding | Full control over your design, logo, and auction layout | Often no brand control – listings look the same as everyone else's |
Customisation | Flexible – set your own rules, layout, categories, and user experience | Very limited – follow the marketplace’s templates and rules |
Customer Retention | Easier – you can remarket directly to bidders and buyers | Harder – the platform owns the customer relationship |
Scalability | Grows with you – add more auctions, categories, and features as needed | Limited by the marketplace's rules and competition |
Integration | Can integrate with your website, CMS, email marketing, and analytics | Usually operates separately from your website |
Niche Support | Ideal for niche or specialist items (e.g. charity, antique, collectable, surplus stock) | Often less flexible for niche industries or auction-specific features |
Speed to Launch | Fast – get started in minutes with SaaS platforms like Auction-Pro | Also fast, but with less control or ability to stand out |
What Are Online Marketplaces?
Online marketplaces are e-commerce platforms that connect buyers and sellers in a virtual marketplace. These marketplaces provide a central location for multiple vendors to sell their products or services.
You'll know these as Amazon, eBay and Etsy, but there are countless others that cater to specific niches or industries.
Types of Virtual Marketplaces
According to Richard Kestenbaum at Forbes, online marketplaces can be broken down into three categories:
Vertical — sells products from many sources, but they are all of one type or niche (such as fashion, electronics, or home goods).
Horizontal — sells products of many types, but they all share a characteristic, such as being handmade or eco-friendly.
Global — sells anything and everything (just like eBay).
There are also hybrid marketplaces. Kestenbaum says, "Amazon itself is a hybrid marketplace, offering products of its own and other companies’ while also providing a platform for buyers and sellers to transact through Amazon either on their own or with Amazon’s assistance of various types.".
Who Can Use Online Marketplaces?
Any form of seller or business can use online marketplaces, including individual sellers as a side hustle, small businesses listing their products, or larger retailers looking to expand their reach.
The barrier to entry is low, but that doesn't necessarily mean success is guaranteed, particularly with the number of sellers and products available on these platforms competing to sell the same products on the same marketplace.
Popular marketplace categories include:
|
But because most online marketplaces try to cater to such a broad audience, they're not always equipped with features that cater to the specific needs of certain industries or products. This can make it tricky for sellers or auction owners to customise their online presence in a way that really works for them.
Which leads us swiftly onto auction software…
What is Online Auction Software?
Online auction software is a specialised platform designed to facilitate the buying and selling of goods or services through an online bidding process.
It provides a virtual marketplace for sellers to showcase their products and for buyers to place bids on those products, usually within a specified timeframe.
When compared to using online marketplaces, using auction software gives you the ability to customise and personalise your online auction. From the homepage display to the bidding rules and user interface, you have control over how your auction is presented and run.
An Example of Auction Software…
Let's use Auction-Pro as an example.
Auction-Pro is an auction SaaS (Software as a Service) that offers a user-friendly platform for hosting online auctions. With Auction-Pro, you have the ability to customise your auction according to your needs and preferences.
You can choose from different templates for your auction homepage, add your own logo and branding elements, and set up bidding rules that suit your requirements.
It also offers a range of features such as bidder registration, online bidding, real-time updates on bid activity, and secure payment processing.
Unlike online marketplaces, where tens of thousands (or millions) of people are competing and listing similar products, you can use auction software to create a unique and exclusive event for your items. |
Who Can Benefit From Auction Platform Software?
Auction software is beneficial for a variety of individuals and businesses, including:
Small business owners looking to liquidate excess inventory or sell unique products
Non-profit organisations and charities seeking to raise funds
Auction houses and professional auctioneers
Online sellers and e-commerce businesses
Real estate agents and property managers
Antique dealers and collectable traders
You don't have to be a tech-genius to use or navigate auction SaaS, either, as most software is designed with user-friendly interfaces and easy-to-follow processes. This means that even those without a strong technical background can use auction software to their advantage.
Comparing Auction Software vs. Online Marketplaces
So, we've covered the bases of what these two are, but what about how they fare against each other? Here are the most notable differences between them…
Factor | Auction Software | Online Marketplaces |
Audience | Build your own | Pre-existing traffic |
Fixed/monthly | Commission-based | |
Branding | Fully custom | Marketplace-controlled |
Trust | Built over time or already established with existing website audience | Immediate via platform |
Data Ownership | Full access | Limited analytics |
Customer Retention | Easy with CRM | Difficult off-platform |
Scalability | High with investment | Capped by platform rules |
Integration | Can connect to your existing site with a domain extension | Separate from your current website |
Should You Use Auction Software Over Marketplaces?
While online marketplaces are good if you're looking to simply list and sell, they really don't compare to the features and benefits of auction software. Auction software offers a more robust solution that allows for greater control, customisation, and scalability.
Greater Control & Customisation
With online marketplaces, you are limited to their predetermined templates and layouts, which can make it difficult for your brand to stand out. Every listing has the same layout, no matter what the product is.
However, with auction software, you have full control over how your listings are displayed and can customise them to fit your brand's aesthetic.
You can add your business logo, choose unique fonts and colours, and create a layout that is consistent with your brand's image. This level of control allows you to create a cohesive and professional online presence, making it easier for customers to recognise and remember your brand.
The actual auction rules are up to your discretion, too, such as setting a minimum bid increment, buyer's fees, and reserve prices. This flexibility gives you the power to run auctions that work for your business model and target audience.
Scalability
Another major advantage of auction software is its scalability.
Unlike online marketplaces, where your inventory is limited to the products or services you offer, auction software allows you to easily scale your business by offering a wider variety of items for bidding. This means that as your business grows, you can keep up with demand without having to invest in additional resources or infrastructure.
Additionally, auction software can also be easily integrated with other platforms and tools, allowing you to expand your reach and cater to a larger audience.
For example, Auction-Pro partners with MailerLite.com to offer email marketing services, allowing you to communicate with your bidders and potential customers more efficiently.
You can speak directly to your target audience and keep them updated on upcoming auctions, new products or services, and any other important information.
This scalability not only helps in increasing revenue, but it also allows for more flexibility in adapting to market trends and customer demands.
See how RIB and outboard auction specialists, ribs.auction, successfully scaled its online auction through our innovative SaaS! Read the case study below… RIBs & Outboards: How Auction-Pro.net Powers Success for ribs.auction |
What About Hiring Developers to Build an Auction Site?
Another option when looking to start an online auction is to start straight from the ground up and hire developers to build your site. But this requires lots of time, money, and effort.
You will need to have a good understanding of website development, or hire someone who does, to ensure your site is built correctly and functions smoothly.
Additionally, hiring developers can be expensive, especially when considering ongoing maintenance and updates.
Auction SaaS eliminates this hassle as the platform is already developed and maintained by professionals. You can simply sign up for a subscription plan, customise your site, and start hosting auctions right away. |
Conclusion: Should I Use an Auction Host Site?
Our answer: yes!
If you're searching for a way to host online auctions without the technical know-how or expense of hiring developers, auction SaaS is an excellent option. It provides all the necessary features and functionality for hosting successful auctions, while also taking care of the technical aspects for you.
In addition, using auction software can save you time and effort in managing auctions, allowing you to focus on other important aspects of your business.
Get Started With Auction-Pro’s Auction Software Today
Ready to get started with auction software? Book a call with our team, and we can discuss how Auction-Pro can help you host successful auctions and grow your business.
Whether you're a small business looking to expand, a charity hoping to fundraise for your next campaign, or a large enterprise seeking to streamline your auction processes, Auction-Pro has the tools and expertise to support you every step of the way. |
FAQs
What is the main benefit of using an online auction site?
The main benefit of using auction site software is that you have full customisation capabilities over the auction rules, the design, the fees and bidding rules, and more.
Unlike online marketplaces where you have to work within their set parameters, auction software allows you to tailor the experience to your specific needs.
Comments