German media company Bertelsmann AG yesterday threw itself into the online auction arena in its native Germany with the launch of Andsold.de, but will find itself in one of the most competitive markets outside the US. Andsold is a joint venture between two of Bertelsmann’s units, Gruner + Jahr and Bertelsmann Multimedia, and will deal in both business to consumer and consumer to consumer auctions.
The firm will, however, face stiff competition in a rapidly developing market. Auction leader eBay Inc moved into Germany with the acquisition of Alando.de GmbH in June, and UK-based QXL.com Ltd also has a German presence. Bertelsmann will attempt to use its muscle as a well-known local brand to keep tits rivals at bay. The company also intends to branch out into other as yet unspecified European nations shortly, where it will face competition from local auction sites, as well as QXL and eBay’s local operations.
Andsold will be free to use for buyers and sellers, with the company taking a 3% cut from every sale concluded. It will offer customers a 20 mark ($10) credit limit to help them familiarize themselves with the service. Ebay’s service is roughly similar, while QXL is still allowing consumers to sell for free, although this will change shortly.
Bertelsmann already runs online bookstore Bol.com and owns half of America Online Inc’s European arm.
