eBay targets texters with new bidding service

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eBay is rolling out an offline, text-based bidding service in the UK, France and Belgium today.

The service, initially launched in Spain in September last year, allows users to make and track bids on the move.

The service, known as 're-bidding,' is seen by eBay as a natural extension to its online business and is targeted at those participants who may be away from their computers during the closing stages of an auction.

"Traditionally web auctions are a desk-based activity and many auction biddings end prematurely because people leave their PCs," said Ian Jordan, eBay UK head of product development, operations and innovation. "The possibility to participate beyond the PC from a mobile phone will have massive implications for the dynamics and value of the auction process."

Users can track bids through 'outbid' alerts sent as SMS messages to their mobile phones. They can then choose to send a text message to increase their bid and win the right to buy the item.

The re-bidding service is delivered using inbound and outbound premium SMS services from mobile transaction network provider mBlox. Mobile technology specialist Dynetic has optimised eBay's transactional platform to integrate with the new channel.

The UK service costs 12 pence plus VAT per message and will be offered to users as an option when a bid is placed online. It does not require any additional downloads or up-front payments and can be used with any make of SMS-enabled mobile phone.

eBay's expansion of the service into more European markets suggests the e-commerce retailer is keen to capitalise on the predicted growth of SMS-based services over the next few years.

Research published earlier this year by Portio Research suggested the potential revenue from SMS-based messaging could reach as much as $67 billion (£33.2 billion) in the next five years.

In its report, entitled Mobile Messaging Futures 2007 - 2012, Portio also predicted this growth in revenue will be driven by 3.7 million messages sent or transmitted during that time.

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