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

how it workVia 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.

Going Online

going online

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.

Under its terms of use, delivery costs are fully borne by buyers and sellers, which meant that the operating cost is simply the costs of running the digital auction house. The online model does make sense given the scalability, especially if it is duplicated in other operating regions. For MoneyMax, it aims to become the premier leading B2B online auction platform in the ASEAN region. Hopefully, it pans out well and acts as a growth catalyst for the traditional industry.

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