Bidding Wars Go Virtual as New Ethiopian Startup Targets Auctions

Auction Ethiopia has officially launched its online auction platform, facilitating the buying and selling of various items through virtual auctions. Operating as an online marketplace connecting sellers and buyers, Auction Ethiopia aims to provide a platform where individuals, businesses, or organizations can list items for auction, with interested users participating in the bidding process.

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Covering a wide range of items, Auction Ethiopia facilitates auctions of machinery, real estate, cars, fine art, electronics, furniture, and even bids from NGOs. Founded by two entrepreneurs backed by an investor, Auction Ethiopia has already amassed over ten thousand users within its first two months of operation.

“The platform is designed with consideration for the various operations involved in bidding. It reduces the hassle faced by bidders by providing a platform for participating in auctions online and viewing bids in real-time, including current bid amounts,” said Yoseph Anku, CEO of Auction Ethiopia.

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“The process, which used to take months, has now been reduced to a few minutes,” he added.

Auction Ethiopia supports different types of bids, including open and closed tenders. In open tenders, bidders can continue placing higher bid offers until they win the bid or the auction closes. Open bids display the initial price, the current maximum bid, as well as the minimum and maximum increments bidders can add.

Items are posted on the platform by Auction Ethiopia after inspection, with photos taken and published. According to their policy, the items remain with the seller, and buyers can inspect them in person once a week on a date set by the seller, aiding users in deciding on preferred products and qualities.

Winning bidders receive a confirmation voucher containing identifying data and the bid amount, which they must submit to the listing entity to claim the asset. Closed tenders, meanwhile, only allow the seller to view live bidding information.

“Over three years of planning and nearly ten months of development have gone into creating this platform, available on Android, iOS, as well as a website showcasing the entire bidding process. The platform also combats the corrupted methods of winning bids seen in traditional auction processes,” explained co-founder Zelalem GebereKirestos, a graduate of Ethiopian Defense Force University in Software Engineering and former founder and CEO of Addis Coupon.

To address bid manipulation issues, the platform employs a bid cap idea where bidders can only raise the bid amount by a certain increment, ensuring a fair process. Additionally, Auction Ethiopia assists sellers in setting prices for their items, providing advice while allowing the final decision to rest with the seller.

With a dedicated team of 20 people employees, the company ensures compliance with legal requirements for listing items such as cars and houses, requiring documents like proof of ownership.

Auction Ethiopia is free for sellers. Organizations signing up for auctions receive their dedicated portal, facilitating easy management of multiple auctions, while individuals can register using their name and phone number.

Meanwhile, bidders or potential buyers are required to pay an annual subscription fee, priced at three thousand birrs per year. This service includes unlimited tender services and tender-related news.

Auction Ethiopia is now attracting significant clients, such as the recently closed Ambassador Hotel. Heaven Teame, Marketing Director at Auction Ethiopia, revealed that over three thousand goods from the Ambassador Hotel, including furniture, TVs, and gym equipment, will be available for bidding starting from February 8, 2023.

According to Heaven, while other platforms merely provide information, Auction Ethiopia streamlines the entire process with just one click. The system integrates with various financial alternatives, including major banks and Chapa, with plans to integrate with telebirr and other payment technologies in the future.