“I have been working on the project since its inception (December 2016). I have participated in the development of algorithms for bidding, MVP, rules for conducting DAICO”.
The idea of creating a WINBIX sales system appeared at the time of evaluating the results of the regular trading operation, which resulted that there is a balance in the warehouse. The situation was classic — something was not sold. The surplus always emerges, and the difference between a more successful trade and a less successful one is in its value.
Also, there was a buyer with his own unique price expectation at the time of sales for each unit of goods but we did not have a tool to collect such information or to make a multitude of deals at unique prices of demand.
Once upon a time, there was such a tool — a classic eastern marketplace, where the seller did not let the buyer go away without knowing his price expectations. Unfortunately, in modern trade, such close communication is lost. Now buyers pass by the stores, taking with themselves information about their desires and lost profits of the seller.
And if in offline trade it is rather difficult to restructure the sales format, then it is possible and necessary to implement an Internet project that solves this problem.
The WINBIX algorithms are based on the principle of an auction for the price reduction, which is modernized by us:
- the price of the lot is reduced until it’s not sold out or until the “stop price” level isn’t reached.
- the stop price differs for different lots and is determined by random sampling from the price range which is determined by the seller
- the auction step is randomly defined in the range of the previous one and to the stop price
- the quantity of goods in stock is hidden from the customer
Thus, neither the further price, nor the stop price of this lot, nor the number of goods in stock is unknown to the customer,
The buyer needs to make a decision here and now: yes or no, and with the risk that the possibility of a decision may be the last one.
Collecting the information from customers is organized by using “Informing about price reduction” function — the buyer sets the price value at the occurrence of which he will be informed. This information is open to the seller and allows to manage sales, based on the data on potential demand.
Also, the project plans to monetize the increased attention of the “hot” audience to every step of price reduction — in comparison with the classic online store, the number of page views will be several times higher. For the advertiser, the traffic will be attractive enough — the consumer, aiming at acquiring a certain product, pondering over the purchase and repeatedly viewing the lot.
To increase the activity of buyers, the following tool will be used — daily sale of some lots without a stop price. And some of the lots will be known in advance, and some are hidden, forcing buyers to check the price changes for all categories of goods actively.
In conclusion, we have been working on the creation of an online auction since September 2018 and the result can be found here: https://demo.winbix.com
The initial launch region is Russia, due to a good knowledge of the home market, then we plan to start working with the countries of Southeast Asia. In the perspective of two years, it will be the European Union and the United States.
