It is unlikely that any rival will be in a position to seriously challenge eBay for the number one spot. However, I think that there is an opportunity emerging for a UK company to take a fair slice of the market. Recently I have been looking at a range of online auctions and one particularly has caught my eye. If you have not yet discovered CQout I would recommend you visit the site.

This is no “me too” clone of eBay but an auction site that has taken its own path to offer online auction buyers and sellers what they claim to want, tighter security. Cqout (pronounced seek you out)is the only online auction site that I know that charges a registration fee, £2 by credit card or £1.50 for postal applications.

Although you can browse the site for free I was initially surprised to find I would have to pay the registration fee even if I only wanted to buy. However, I could see how this could prevent “shiming” (registering several IDs and then bidding on your own items to push the price up). The saving on this alone could more than off set the registration cost.

By debiting your credit card this gives the company confirmation of your address and the other details you provided on registration. I was also most impressed after I registered to receive a phone call to confirm my acceptance. No doubt another security check and it left me with the impression that here was a company that really cared about security and was not just paying lip service to the concept.

As Tony Newton, a founder Director of CQout told me,
“we know that a registration fee can put some potential users off, especially fraudsters, but those that elect to enter their details know that they are joining a secure, trustworthy trading community and time has proved us right.”

This would most certainly appear to be the case. Despite the fact that they use no advertising and rely purely on word of mouth CQout are now second only to eBay in the UK, judged by the number of items offered for sale.

One feature that will appeal to all auction sellers is the fact that basic listings are free. Enhancement and final listing fees are also considerably lower than eBays.

Three graduates of the London Business School launched Cqout in 1999. After a slow start, which is typical of most new auction sites, they are now growing rapidly. A year ago they had users in 39 countries, now it is 58.
A powerful feature is that users can place and view auctions in their local currency.

Although a general auction site CQout is gaining a reputation in specialist categories such as movie memorabilia and music.

The challenge for any auction site is to attract enough buyers. Free listings will always attract the “well I have nothing to lose” brigade, but unless there are buyers any auction site will eventually fail. CQout has proved that it can attract them by offering a secure and fair trading environment. It may not be as big, bold and brash as its American rival but it does have a rather friendly reassuring feel that I like. Why don’t you visit the site and give it a look, you could be surprised.