As e-commerce technology continues to develop, so do the opportunities in the online auctioneering industry. Advances in AI, live streaming, and other technologies are making it possible to elevate online auction experiences and open doors to new business opportunities.
In this article, we will discuss the future of auction technology for supporting online auctioneering. We’ll pay special attention to some tools used for supporting live auction websites, building trust among bidders, and engaging audiences to improve sales. To get started, we’ll take a quick look at the current auction technology landscape to give you an idea of what’s currently working.
The auction technology landscape: past to present
To understand the significance of emerging auction technologies and trends, it’s essential to know where the industry is currently and how we’ve reached this point.
When it comes to online auctions, many people’s minds go straight to eBay. This platform played a massive role in pioneering online auctioning and set the foundation for the e-commerce industry as a whole. eBay is a peer-to-peer marketplace, meaning individuals can auction off goods to other buyers.
eBay rose to prominence with its timed auctions, but the industry has since seen a rise in live auctions. Live auctions are made possible with video streaming that brings the sale to bidders both near and far. Live auctions have transformed the online auction space since they create more engaging, lifelike experiences for users that are more on par with what buyers would expect if they attended an in-person auction.
Currently, online auctions are used to sell a plethora of items, ranging from cheap consumer goods to large commercial equipment. It is particularly popular with high-ticket or limited quantity goods, such as rare antiques, luxury vehicles, farming equipment, and so forth.
Emerging technology trends in auctioneering
Now that you know a bit more about where the auction technology landscape stands currently, let’s review a few driving forces that are shaping the future of the auctioneering industry.
1. AI and machine learning
Artificial intelligence (AI) and machine learning are making waves in most industries, and auctioneering is no exception.
Product valuation is an excellent use of AI in online auctioning. This helps auctioneers determine a starting bid for the listings. It removes any bias or sentimental value that can come when listing personal items, such as antiques.
Machine learning helps curate personalized user experiences that cater to bidders’ preferences based on their demographics or online behavior. Personalized experiences yield higher engagement rates, creating opportunities for more sales.
You can also expect to see AI and machine learning playing a variety of roles in business management and operations. Auction houses and auctioneers can use it for everything from generating product descriptions to managing some customer service tasks.
2. Ultra-low latency live streaming
Hosting live online auctions or adding an online component to your in-person auctions is an excellent way to expand your customer base to include remote bidders. However, for the bidding process to be fair to all bidders, it is crucial to stream with real-time latency that synchronizes the video and real-time bid updates.
You can achieve sub-500ms latency for your live auctions with the support of a real-time streaming solution, like Dolby OptiView. This is possible with the support of robust streaming infrastructures and cutting-edge streaming protocols, such as WebRTC and HESP.
3. Improved data analytics technology
One of the most potent elements of e-commerce is the improved data analytics technology. Fortunately, e-commerce data collection and analytics are becoming more granular, allowing auction houses to understand their online bidders better.
Equipped with this insight, these businesses can make better decisions for their companies. For example, if auction houses notice bidders tend to exit the stream after a certain point in their live auctions, they could restructure their streams to keep users engaged.
This data can also be used to fine-tune marketing strategies and messaging to help auctioneers attract the right audience for their sales.
4. Secure transactions for online auctions
A significant aspect of optimizing the customer experience in any e-commerce workflow is creating a secure checkout process. It is substantial for auctioning platforms that aim to build trust among bidders.
There are several ways online transitions have become more secure, and blockchain technology is becoming an increasingly popular method to facilitate secure transactions. This technology can execute contracts and release payments accordingly to ensure security for both parties in the transaction.
Aside from providing secure payments, blockchain also keeps unchangeable records of the transactions. This is very important for verifying ownership, tracking the authenticity of items, and more.
5. Virtual and augmented reality in auctions
Virtual reality (VR) and augmented reality (AR) are two critical technologies that present ample opportunities in the future of auctioneering. They create opportunities for bidders to examine and explore products as if they were interacting with them in real life.
Although VR and AR create immersive auction experiences with realistic product renderings, they are technically complex to produce. Additionally, most consumers do not have the technology to access VR and AR streams.
For online auction workflows that aren’t quite advanced enough for VR and AR shopping experiences, multiview streaming setups are great for giving bidders a better look at the items they are bidding on. Giving bidders the ability to see products from different angles helps create a more lifelike shopping experience.
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6. The Internet of Things (IoT)
If you’re not familiar, the Internet of Things (IoT) is the integration of physical objects and internet capabilities. An example of IoT is an internet-enabled point of sales system or another industrial device that connects to a larger network for business management or operational purposes.
IoT technology can be used in auctions to register bids or optimize inventory management. This automation is particularly valuable in hybrid auction situations where bids are being placed both in-person and online.
How to prepare for new auction technology
With so many new technologies and trends in online auctions, emerging into the future may feel daunting. However, there are a few things you can do to maximize your success with the emerging advancements. Let’s check them out.
Maintain a solid foundation
With so many moving parts, keeping a solid foundation to your workflow is crucial. Before you jump on trends or adopt new technologies, it’s essential to assess your current tech stack and processes to make sure they are strong.
By ensuring everything is well structured and working as intended, new technologies will augment your workflow rather than create chaos and confusion for your team.
Prioritize flexibility
Since a lot of the technology we’ve discussed is developing at a rapid pace, it’s essential to stay flexible and adaptable. Although you’ll want consistency in the foundation of your workflows, maintaining some leeway to adapt to new trends will help you capitalize on opportunities as they emerge.
Don’t let humanity fall to the wayside
With AI automation and optimization, it can be easy for humanity to fall to the wayside. Things can start to feel robotic, and the user experience will suffer.
Make sure to remember that you’re creating experiences for humans. Even if things can be automated, a human touch will help you stand out in a market that is becoming increasingly automated.
Take it or leave it
As new trends and technological developments emerge, shiny object syndrome can become an issue. You may feel tempted to jump on every trend, but this isn’t always the way to go.
If a specific tool doesn’t make sense for your business or your audience, feel free to leave it on the table. While it’s wise to leverage the innovative tools, there’s no need to complicate your workflow if it doesn’t make sense.
Final thoughts
With so much new and improved technology, the auctioneering industry is evolving at a rapid pace. Online auctions are opening doors to new revenue streams for auction houses and other types of businesses.
If you’re looking for a robust streaming solution to power your live auctions, look no further. Dolby OptiView is an option for you. Contact us to learn how to leverage our real-time streaming technology to create a more engaging user experience and boost the success of your live online auctions.
