On the morning of 9 May 2018, MoneyMax Financial Services (MoneyMax) launched SG e-Auction, the first Singapore LIVE e-Auction site, with one of Japan’s leading Business-to-Business (B2B) internet auction company Aucnet.
The online platform is meant for a wide range of luxury goods that include branded bags, accessories, timepieces and jewellery, where traders can make real-time live electronic bid conveniently from anywhere. As a pioneer in Singapore, the first-of-its-kind online platform would revolutionise the present trading environment.
How It Works
Via the site, users can consign their products for sale or bid for products through a live bidding process without having to be physically present at an auction location. Goods are inspected through by unified and reliable evaluation services provided by SG e-Auction, ensuring the products’ quality and authenticity.
The interior and exterior of the products, along with any certificates and associated accessories, will be photographed and placed in the e-Catalogue for viewing. Members have 3 days prior the auction day to place their bids.
Following a successful bid, the winning bidder will make payment with SG e-Auction before items are shipped from the distribution centre.
In March 2018, Shares Investment wrote on “SI Research: Is The Pawnbroking Industry A Lucrative Business?”
Back then, we found that the number of pawnshops have doubled since 2008, giving the impression of a very profitable industry. However, further analysis led us to the conclusion that retailing pre-owned items are not as lucrative, given the high working capital costs to lend as loans to sellers. Inventories of unredeemed valuables sold as second-hand jewellery or melted as scrap gold also yield rather low single-digit margin. That is in addition to the cost of operating physical retail outlets: Staff costs, rentals, utilities, insurance etc.
With MoneyMax paving the way, we might see more pawnbrokers going online instead of just sticking to the traditional brick-and-mortar model. For MoneyMax, the company is charging a commission fee of 5 percent to the seller and 6 percent to the buyer for each successful transaction. This would surmount to 11 percent of the transaction value, which means MoneyMax earns $11 dollar for every $100 of successful transaction.