Exploring the Appeal of STAR BUYERS AUCTION's New SaaS-Type Feature: Insights from the First User.​ ​ ​ ​

STAR BUYERS AUCTION launched a new SaaS-type feature that enables member companies to hold auctions as auctioneers from March 20, 2023.​ ​ ​ ​

The new SaaS-type feature will allow member companies to showcase their products to more than 3,500 STAR BUYERS AUCTION partner companies*1 both domestically and internationally, as a market owner, without the need to personally gather buyers. The service is designed for efficiency and cost-effectiveness, with no market setup costs*2, and all the administrative work being handled in house. We take care of all administrative work, including inspection, photography, listing, shipping, and managing enquiries on listed products.

*1 As of August 2023, the number of STAR BUYERS AUCTION partner members. 

*2 Listing conditions apply, such as the number of items and their unit price. 

We had the opportunity to speak with an operator from REGATE Inc's purchase service "FUKUCHAN", the first to utilize the new SaaS-type feature. They shared insights on the decision to use this feature and its benefits.   

It's my pleasure. REGATE Inc. primarily focuses on two major business areas. 

First, under the trade name "FUKUCHAN," the company operates a business of on-site and over-the-counter purchases of used goods. In our on-site purchase operations, we predominantly acquire items from customers in the 40-70 age groups. 

We organize second-hand goods purchases and flea markets targeting young families and children, with the vision of connecting these efforts to the future, especially focusing on children who will be tomorrow's societal leaders. 

Additionally, we have launched "Fukuchan REUSTE," a venture dedicated to kids' reuse. This initiative aims to foster a culture of 'fun reuse' rather than obligatory recycling. 

The products we procure are primarily sold in our physical stores and through various e-commerce platforms, which include cross-border sales. We are also actively exploring other sales avenues, such as live commerce, to expand our reach. 

However, not all of the items we acquire can be priced and sold. As such, we are currently working on new strategies of selling said goods in auctions at other companies or through the new SaaS-type auction feature offered by STAR BUYERS AUCTION.

While our primary focus has been on in-store sales, not all items we purchased could be readily priced and sold in our stores. We have contemplated hosting our own online auctions for quite some time,

 However, the expertise, system requirements, and associated costs and effort required to hold our own auctions were substantial obstacles. 

The solution emerged through our ongoing relationship with Valuence, the operator behind STAR BUYERS AUCTION. We had been utilizing their platform for a while and had frequent discussions about various aspects of auctioning, including their experiences in starting auctions. 

When we expressed our desire to initiate our own auction at REGATE, Valuence proposed a collaborative solution. They suggested leveraging STAR BUYERS AUCTION's expertise and system to conduct an auction with the new SaaS-type feature. This collaboration was the key to realizing our new SaaS-type auction model.​ ​ ​ ​

Multiple online auctions are held virtually every day,

at various times. This presents a challenge for buyers who find themselves constantly bidding in different auctions, often in their limited free time. It creates a cycle of continuously monitoring and participating in these auctions. 

Moreover, for those hosting auctions, there's intense competition to attract buyers.  

This competitive environment, I believe, was one of the deterrents for REGATE in considering our own auctions initially. 

Precisely. While we had some idea of hosting our own auctions, the absence of concrete expertise was a significant barrier. The financial aspect was daunting as well – we were looking at costs potentially running into hundreds of millions of yen. This would include developing an online auction system and covering advertising expenses to attract bidders. Given these factors, venturing into our own auctions seemed impractical at the time. 

The response has been quite encouraging. We've noticed increased recognition of the "REGATE" name in the public sphere, particularly when we visit various auction sites and marketplaces. It's gratifying to see our brand becoming more well-known. 

The most significant advantage has been the drastic reduction in costs, a major hurdle we previously faced with the idea of hosting our own auctions.  

Also, during our first "REGATE AUCTION," we received bids from many of Valuence's partners, which was an enormous benefit, especially considering the advertising and PR expenses we would have otherwise incurred. 

I honestly can't come up with any downsides, but if I have to think of one, the criteria for listing items must be in accordance with the rules of STAR BUYERS AUCTION, so there are some restrictions on the items that can be listed when compared to our own auctions. 

However, our discussions with Valuence have been very constructive, and they've shown openness to expanding the range of products we can auction. 

We are leveraging STAR BUYERS AUCTION's influence to attract and promote customers effectively. During a recent meeting with a Valuence sales representative, I

learned that they had conducted a briefing session for their overseas partners before launching our auction in order to inform them of the "REGATE AUCTION."​ ​ ​ ​

I feel that we have benefited very much from Valuence's help, as they have worked to boost REGATE AUCTION in ways that we didn't anticipate. 

In retrospect, I believe we could have advanced further and faster if we had worked more closely with Valuence from the outset, particularly in understanding aspects like 'which products sell well' and 'which are likely to see growth.'  

Absolutely. Until now, our approach was more about diversifying where we listed items and focusing on speed,  selling items through various auction-holding companies to optimize turnover rates. 

However, this made accumulating consistent data on what might boost sales challenging, since the bidding prices often varied from one auction company to another. Without consolidated data, it was challenging to gauge the right timing or to understand if a particular item was priced higher in certain auctions. 

Now, by centralizing our auctions into a single REGATE AUCTION, we've gained visibility into this data, which is proving to be highly beneficial, as it helps us make more informed decisions and strategies for our auctions. 

At the moment, REGATE is heavily invested in other initiatives and our in-store sales, which means we haven't yet fully maximized the potential of the new SaaS-type feature in our auction processes.​ ​ ​ ​

Moving forward, as we continue to evolve with REGATE AUCTION, I think we can make significant enhancements in the speed and volume of listings. Moreover, by closely collaborating to monitor and evaluate metrics like profit margins and sales rates, we can broaden the range of products we offer. 

Our ambition is to elevate REGATE AUCTION to a level where it not only gains more popularity but also sets a benchmark that other auctioneers might take a closer look at. 

For any inquiries, or if you are interested in learning more about the new SaaS-type feature, please contact us using the information below.