Online Auctions and Multichannel Retailing

An advantage of online auctions is the ability to offer an item at auction while simultaneously using other offline and online channels. Despite the potential of interactions between channels, little is known regarding how multichannel-retailing strategies may influence outcomes for online auctions. Using data collected from eBay Motors and dealer websites, this paper examines how resources and capabilities of sellers related to multichannel retailing influences online auction outcomes--with findings indicating that auction outcomes are influenced by seller activities in other channels. In particular, this paper finds that the quality of the retail location (accessed through the total household income for the surrounding 30 miles of the seller's location) and the seller's electronic commerce capabilities (accessed through the seller's website and use of other online channels) are each associated with increases in auction sale price, a lower percentage of auctions in which the reserve price is met (closing ratio), and a lower percentage of vehicles which sell through the online auction channel (sell-through ratio).