Available Studies

AUGUST 1999

Survey Summary -- ONLINE AUCTIONS

DISCUSSION/OVERVIEW

In August 1999, Esearch.com sent out an email survey to approximately 5,000 Internet users asking about their opinions/use of online auctions. Of those responding (approx. 1,200), 57% had participated in at least one online auction (either as a buyer or seller). Online auctions appear to have a higher appeal for people 55+, with the lowest appeal in the 20-25 age range (note: no data was collected from users under 20-years of age). Ages 25-54 indicate a fairly even appeal. However, the age group with the highest level of respondents indicating they had never participated was the 45 to 54 group (50%).

Online auction participation appears to have a correlation with income with the highest participation coming from those in the $100-$125K bracket (70% participation). The lowest participation was among the >$30K per year group (50% of this group hadn’t participated in an online auction).

Online auction use is almost exclusively for personal purposes. Only 1% of respondents indicated they use online auctions exclusively for business purposes -- 22% indicated they use it for both personal and business. 77% use them only for personal purposes.

24% of online auction participants (those who had bought/sold) had made an online auction deal that was never consummated. The biggest reason for a transaction not being completed was indicated as "buyer/seller changed their mind (no specific reason)" at 35% incidence. The next most popular reason was that the item was damaged and/or misrepresented (22%).

There appears to be a high level of trust among buyers and sellers with 85% of respondents indicating they "never" have used an escrow service associated with an auction. 3% will use them "always" and 12% will use one depending on the item being bought/sold.

QUESTIONNAIRE

1. Have you ever participated in an online auction as a buyer or a seller(check only one answer)?

36% Yes, as a buyer
3% Yes, as a seller
18% Yes, as both buyer and seller
43% No, I haven't participated in an online auction

2. Have you ever (won an auction)/(successfully auctioned something) and then not completed the transaction (check only one answer)?

24% Yes
76% No

3. If yes to question #2, why: (please check all that apply)

7% Item was no longer available
22% The item was damaged/mis-represented and resulted in a return
15% Seller didn't own item and couldn't deliver as promised
19% Buyer didn't have the money
5% Buyer was under 18 and couldn't complete the transaction
35% Buyer/Seller changed their mind (no specific reason)
32% Other

4. Do you use online auctions for (check only one answer):

77% Personal use
1% Business use
22% Both personal and business use

5. If personal use (check all that apply):

82% Do you look for specific items
52% Do you browse over all types of items
40% Do you collect specialty items

6. Do you use escrow services when buying or selling through an auction(please check only one answer)?

3% Yes, always
85% No, never
12% Sometimes (depending on the item)

7. What is the dollar threshold for using an escrow service (check only one answer)? (Data is from only the group indicating "sometimes" to Q6 above):

15.5% $0 - $50
14.5% $51 - $100
33% $100 - $200
14.5% $201 - $500
15.5% $501 - $1000
5% $1000 - $2000
1% $2000 - $5000
- $5000 - $10,000
1% over $10,000

8. What is your overall satisfaction with Internet auctions?

37% Extremely satisfied
42% Somewhat satisfied
14% Neither satisfied or dissatisfied
6% Somewhat dissatisfied
1% Totally dissatisfied

9. Regarding auction use, please check the statement(s) that apply to you:

36% I buy/sell regularly
2% I have no interest in online auctions
33% I buy/sell seldomly
13% I've bought/sold only once
15% I know someone who is likely addicted to online auctions
5% I am addicted to online auctions
38% I only go to online auctions to look for specific merchandise
27% I am a collector of specialty merchandise and use online auctions to add to my collection
43% I regularly browse online auctions
3% I place more than 20 bids per week
7% I spend too much time with online auctions
9% I don't spend enough time with online auctions
34% Online auctions are of great interest to me

10. What auction sites have you used (successfully completed a transaction), please check all that apply:

57% Ebay
11% Amazon
17% Yahoo
13% OnSale
3% AtAuction
18% Ubid

11. What is your favorite auction site (check only one):

65% Ebay
4% Amazon
5% Yahoo
6% OnSale
3% AtAuction
6% Ubid
14% Other

SUMMARY

There is a high level of interest and participation in online auctions, and this interest spans income, age and gender – however there are definite peaks with specific demographic sectors.

Males appear to favor auctions. An equal number of men and women were polled and of those indicating they had participated in an online auction (as either a buyer, a seller or both), 54% were men. Only 46% of the women indicated they had participated.

Most people indicate they are satisfied with online auctions and that they are of "great" interest. Respondents who use online auctions indicate that they "buy/sell regularly" and that they "browse online auctions regularly". This would indicate high repeat traffic to auction sites… however Ebay clearly has the eyes of the Internet audience with 65% of respondents voting it as their favorite auction site.

A complete report with tables and full analysis is available from Esearch.com for $595.00. Email westergaard@mindspring.com to order.

About Esearch

Esearch is an Internet market research firm specializing in data collection via email. The company has a database of thousands of individuals willing to participate in on-line surveys, including complete demographic information on all panelists. Individuals interested in becoming an Esearch panelist or companies interested in on-line research should visit www.esearch.com or email esearch@esearch.com.