Trade Me

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Trade Me
Trade Me's modern 'In with the new' home page, 2024 Trade Me 'In with the new' home page 2024.png
Trade Me's modern 'In with the new' home page, 2024
Type of businessPrivate
Available inEnglish
Headquarters
Wellington (main office), Auckland, and Christchurch
,
New Zealand
Country of origin New Zealand
Area servedNew Zealand
Owner Apax Partners
Founder(s) Sam Morgan
Key people
  • Anders Skoe (CEO)
Employees550
URL www.trademe.co.nz
CommercialYes
Launched1999
Current statusActive

Trade Me is New Zealand's largest online auction and classifieds website. Managed by Trade Me Ltd., the site was founded in 1999 by New Zealand entrepreneur Sam Morgan, who sold it to Fairfax in 2006 for NZ$700 million. [1] Trade Me was publicly listed as a separate entity on 13 December 2011 under the ticker "TME". In May 2019, Trade Me was acquired by private equity firm Apax Partners for NZ$2.56 billion. [2] Trade Me Ltd also operates several sister websites including FindSomeone and Holiday Houses.

Contents

As of 20 March 2019, Trade Me's website was the fifth most visited in New Zealand and was ranked 2,711th globally according to Alexa Internet. [3] In a country with a population of 5.2 million, [4] the Trade Me site has, as of April 2021, 5 million active members. [5] As of April 2021, an average of 690,000 people visit the site each day. [5]

Participating traders primarily use New Zealand's banking system to settle payments, although Trade Me offers sellers the ability to accept credit card payments via Trade Me's own instant payment service, 'Ping' (formerly 'Pay Now'). Australian sellers must have a New Zealand bank account, while sellers from other countries are not allowed on the site without special approval. [6]

Trade Me shares many features with other online auction websites, such as eBay. Some of these features include "Buy Now" and "Auto bidding". Sellers may choose to block the large proportion of members not "authenticated" from bidding. Only "authenticated" members can ask sellers questions. Members can become "authenticated" by using a credit/debit card on-site or depositing some money in their Trade Me account.

Only one membership per private person is allowed. Membership is for life, is never deleted and will be only partially deactivated if a member "closes" their membership by giving three days notice in writing to Trade Me. Member profile, bidding history and "feedback received" pages are then hidden and can be reactivated by ex-members at a later date on request. All ex-members empty member "items for sale" pages and all the "feedback sent" posted on other members pages is not hidden.

History

Origins and early development

A former Trade Me logo from October 1999 TradeMe classic banner.PNG
A former Trade Me logo from October 1999

Sam Morgan founded Trade Me in 1999, constructing the site while working full-time for Deloitte as a technology consultant. Within Deloitte, Morgan worked on Internet projects and supply-chain issues. [7] During this time he witnessed the successes of online businesses like eBay and Yahoo, as well as the disasters of the dot-com bubble.[ citation needed ]

Trade Me founder Sam Morgan at Webstock 2008 Sam Morgan.jpg
Trade Me founder Sam Morgan at Webstock 2008

According to Trade Me legend, [8] Morgan, then 23 years old, decided to found the Trade Me site when, despite searching online, he could not find a secondhand heater for his flat in Wellington. The Trade & Exchange site had a heater for sale, but held back listings for a week before publishing them online, and by the time Morgan made contact with the heater's owner, the item in question had already sold.[ citation needed ]

Morgan describes the initial designing and building of Trade Me thus:[ citation needed ]

"Some time later we were in a backpackers in Sydney and got evicted because it was overbooked. We went up to some backwater because it was the only accommodation we could find. Anyway, there was nothing to do, so that night I started drawing a data model. So it sort of started there really. Then when I came back to Wellington I literally sat on the couch and built the site on a laptop over a five- or six-week period." [8]

The site went online in March 1999 after Morgan pulled together as much funding as he could. It gained 155 members in its first week on the Internet. [8] In its early stages Morgan humorously listed Trade Me for sale on eBay with a $1 million buy-now price. Though eBay withdrew Morgan's auction, the prank sparked some interest among New Zealanders who realised the potential of online trading.[ citation needed ]

Trade Me developed slowly initially, because its founder had little funding to pay for the costs of hosting and of expanding the site. In addition, Trade Me initially offered a completely free service for both buyers and sellers, a strategy for expanding its member base at the cost of short-term revenue. With little money and time available to work on the site, Morgan made the critical decision to sell almost half of his new company to his former Deloitte colleagues, bringing him around $75,000.[ citation needed ]

By August 1999 membership had risen to 3,500, and Morgan could dedicate most of his time and funding to the site. The early strategy for Trade Me involved simply increasing its user base and encouraging members to refer their friends to the site. Trade Me launched the Safe Trader escrow service about this time.[ citation needed ]

Growth and expansion

In its early years Trade Me continued to struggle, slowly increasing its user base, but facing financial challenges. The site initially used web banners, but falling prices for advertising made web-banner revenue insufficient to cover expenses. Trade Me then introduced fees for auction services: first for features such as bold titles; then in September 2000 it introduced "success fees". This action proved the turning point for Trade Me, saving the site from potential financial disaster. Much of the success to come was based around the 'Trade Me Manifesto', a series of ten values for keeping the site fast and the company technology focused. [9]

eBay tried to enter the New Zealand market in 2001, but had little success. Trade Me has remained the major Internet-auction site in New Zealand, with both international and smaller national competitors gaining relatively little market penetration. Morgan commented on eBay's attempt to penetrate the New Zealand market in an interview:

"...I think there are big cultural issues there that are just not well understood. For example the Americans think that everyone has a zip code [...] they were a little late in and then they launched in US dollars." [10]

Morgan took time off from the stress of running the booming Trade Me site in September 2001, and went to the United Kingdom to manage an IT team in London. When he returned to his role at Trade Me the site had become profitable, with a membership of 100,000 and growing. By April 2005, this number reached one million.[ citation needed ]

In August 2003, Trade Me went live with Trade Me Motors [11] and Trade Me Property followed in 2005 along with Trade Me Jobs in 2006.[ citation needed ]

New Zealand's Deloitte/Unlimited Fast 50 rated Trade Me the fastest-growing NZ technology company in 2005. [12]

Acquisition by Fairfax

Trade Me offices, Wellington, 2006. TradeMe offices.jpg
Trade Me offices, Wellington, 2006.

On 6 March 2006, the Australian media company Fairfax acquired Trade Me in a deal worth NZ$700 million, with an additional NZ$50 million payable if the organisation met earnings targets over the next two years. (Those targets were met.) Sam Morgan and other executives remained with Trade Me. [13] Since the Fairfax purchase, Trade Me has continued to stand alone, with the former Fairfax NZ sites Jobstuff and Propertystuff being discontinued in favour of the Trade Me offerings.

In December 2012, Fairfax announced it was looking to sell off its stake in Trade Me in order to pay off debts. [14] The sale was confirmed on 17 December. [15] Its first profit report following the sale exceeded expectations, at NZ$37.4 million in the second half of 2012. [16]

Listings

Trade Me has increased its scope over time, and now offers a wide range of listing possibilities. Customers can list the following items and positions on Trade Me:[ citation needed ]

Trade Me sites include:[ citation needed ]

Discontinued sites

Old Friends logo Old Friends logo.png
Old Friends logo

Controversy

As a fairly open marketplace which is recognised globally, Trade Me experiences the same problems (such as fraudsters), and users need to exercise vigilance. In 2007, Trade Me set up a dedicated Trust & Safety team who monitor the site seven days a week to keep its members safe.[ citation needed ]

"Members can report listings that may be in breach of the Terms and Conditions" [19] via the "Community Watch" (CW) badge, sited at the bottom of every listing. Contact with staff can also be made via the 'Contact Us' link at the bottom of every page. Social media can also be used to contact Trade Me.[ citation needed ]

To minimise payment problems and reduce fraud, Trade Me restricted membership to residents of New Zealand and Australia in 2005. This affected around 20,000 international members. However, in September 2013 Trade Me announced that it had "opened up its borders" and now has "a few internationally based sellers trading on the site," but that "only international sellers who meet our requirements for selling from overseas are allowed to do so." [6]

Trade Me's terms and conditions restrict membership to persons over eighteen years of age, as any user under the age of eighteen can not negotiate a legally binding contract. Prior to 2005 Trade Me did not restrict underage users, even allowing them to enter in their correct birthdates upon sign-up. In June 2005 Fair Go , [20] a television programme devoted to consumer affairs, approached Trade Me Limited regarding this issue and featured the matter on a broadcast episode. In response to this, Trade Me Limited sent all the users who registered their date of birth as under eighteen an e-mail asking them to check and update their details if incorrect. Trade Me no longer allows users to register if they enter a birth date indicating their age as under eighteen, but people under eighteen may simply represent themselves as older when they join.[ citation needed ]

Clashes with rivals

Trade Me Property logo 2010. TradeMe property logo.png
Trade Me Property logo 2010.

In 2006, Trade Me laid a complaint with the Advertising Standards Authority (ASA) over the advertising of its largest property market competitor, Realestate.co.nz. According to the complaint, Realestate.co.nz, (run jointly by the Real Estate Institute of New Zealand (REINZ) and Property Page Ltd) had misled consumers with their advertisements with their slogan: "the only place with every place". Trade Me stated that it had properties listed on the Trade Me website that Realestate.co.nz did not have. Trade Me also detailed other reasons why Realestate.co.nz had allegedly breached the ASA's code of ethics and comparative advertising. The ASA upheld parts of the complaint. [21]

On 6 November 2008, Lixtor accused Trade Me of using bullying tactics. Trade Me said Lixtor was just trying to draw media attention. [22]

On 20 November 2008, a community newspaper The Aucklander also reported that Trade Me's lawyers asked Lixtor to remove their "Terms and Conditions" [23]

On 3 February 2009, in the wake of the emerging New Zealand copyright law Section 92a, New Zealand Creative Freedom Foundation published an article. [24] It was stated that Lixtor vs. Trade Me case is a good example of how the new section 92a in the New Zealand copyright law could be "misused" if passed.[ citation needed ]

Clashes with software developers

Various software developers have received legal threats after developing third-party software which interfaces with the Trade Me website.[ citation needed ]

On 19 August 2006 the New Zealand Listener published an article, "Bidding War" [25] on one such developer. The developer, Ciaran Riddell, created a piece of software, AuctionBar, which used a technique known as screen scraping. The software allowed for more detailed searches for goods on sale as well as bids and updates via text-messaging and a tool known as a "sniper", which acted as an automated bidding tool.[ citation needed ]

Trade Me have since amended the "Terms and Conditions" [19] of the Trade Me website which now specifies "You may not use a robot, spider, scraper or other automated means to access the Website or information featured on it for any purpose" under s4.1(c).[ citation needed ]

On 7 May 2007, Trade Me released a Windows Vista Sidebar Gadget to run in the Windows Sidebar. This gadget, available on the Trade Me site, became the first sanctioned application to work with Trade Me. As the Vista Gadget requires an XML Feed, the gadget caused further discussion in the developer community about why TradeMe did not have an API. It also led to other creations by the developer community on top of Vista Gadget.[ citation needed ]

Trade Me has now released an official API.[ citation needed ]

Notable auctions

As of July 2013, the most popular auctions were as follows: [26]

RankViewsClosedItem
11.1m3 June 2006 Wellington Hurricanes player Tana Umaga hit teammate Chris Masoe with a Roxy handbag at the "Jolly Poacher" bar in Christchurch after Masoe got into an altercation with a patron. The owner of the bag auctioned it via TradeMe for $22,750, generating a large media story and over 1 million page views before the auction closed. [27]
21m10 July 2013A printer which was stated to be faulty and 'possessed' was listed by nickftward to be on sale. He used quite a lot of humour and sarcasm to describe it, which made the auction more fun. His description:

"Words cannot express how much I hate this printer. It never works when I need it to - it's like it knows when I have to urgently print something. It randomly decides if it wants to work wirelessly or not. And scanning wirelessly? Forget about it! When you first turn it on it will play an endless symphony of sounds that are simply there to fool you into thinking that it might actually do what it's designed to do. Don't be fooled. This thing is evil incarnate." The winner of the auction was kornholio, with a winning bid of $280 ($1 Reserve Price) [28]

3810,80218 June 2009Mike Whittaker (mikew4) listed his old Kelvinator washing machine under the title 'Scary Washing Machine' due to its behaviour when washing. He created a fictional story about how it sucked his shoes, pants, iron and wife into a vortex, beyond which, there are dinosaurs. The pictures he drew of the supposed dinosaurs are being sold as fundraisers for NZ charities. T-shirt company 'MrVintage' has created its own Scary Washing Machine Range of men's and women's T-shirts. The washing machine eventually sold for $5,160. [29]
4459,4201 August 2012The implosion of Radio Network House on 5 August 2012 was New Zealand's first ever controlled building demolition by explosives. Like most other buildings in the Christchurch Central City, Radio Network House was damaged beyond repair in the 22 February 2011 Christchurch earthquake. The right to push the button for the implosion was put up for auction and became the auction with the third highest page views ever. The winning bid was for $26,000 and the consortium of demolition contractors let the Child Cancer Foundation nominate a six-year-old boy from Queenstown. [26] [30]
5355,88920 January 2012YOUR Tattoo on my Bum!!
6384,70524 May 2009Buy a Tractor and get a 20-acre farm for free. Southland couple Allan & Shelly Holland have ensured that whoever bought their tractor got a little extra to boot.

The International 574 was just a regular old tractor – bucket, back blade, red – but it did come with one rather unusual added feature: a farm, the 8.1h block in the Catlins was an added bonus for whoever wins the tractor auction.

7316,3507 March 2011Landscape Rocks for Sale in ChCh (following the February 2011 Christchurch earthquake, there was no shortage of rocks, as whole cliffs had collapsed)
8292,1846 May 2010Folden 2010
9276,0948 January 2009Jesus Christ Pita Bread
10258,7759 January 2012Two days in the studio and advice from Neil Finn

Note: Withdrawn auctions become unviewable after 60 days and bid histories after 45.[ citation needed ]

Notable people

See also

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References

  1. ↑ "Trade Me price fair, says Morgan". TVNZ News. 6 March 2006. Retrieved 17 May 2011.
  2. ↑ "Funds advised by Apax Partners complete the acquisition of Trade Me". Apax Partners. Retrieved 11 May 2019.
  3. ↑ "New Zealand - Alexa record for trademe.co.nz". Archived from the original on 13 February 2009. Retrieved 22 March 2019.
  4. ↑ "Subnational population estimates (RC, SA2), by age and sex, at 30 June 1996-2023 (2023 boundaries)". Statistics New Zealand . Retrieved 25 October 2023. (regional councils); "Subnational population estimates (TA, SA2), by age and sex, at 30 June 1996-2023 (2023 boundaries)". Statistics New Zealand . Retrieved 25 October 2023. (territorial authorities); "Subnational population estimates (urban rural), by age and sex, at 30 June 1996-2023 (2023 boundaries)". Statistics New Zealand . Retrieved 25 October 2023. (urban areas)
  5. 1 2 "Trade Me Site Stats". Trade Me. Retrieved 1 August 2015.
  6. 1 2 "International sellers are now on Trade Me". Trademe - Trust & Safety Blog. Retrieved 15 November 2014.
  7. ↑ "Sam Morgan’s e-Business strategy - an i-Start exclusive" Date: March 2006 Accessed: 9 December 2006
  8. 1 2 3 Carney, Michael (11 March 2006). "Hard road to online fame and fortune". The New Zealand Herald . Retrieved 23 November 2011.
  9. ↑ Simpson, Rowan (2014). "Trade Me Manifesto « Rowan Simpson". rowansimpson.com. Retrieved 7 February 2014.
  10. ↑ "TradeMe: Big Fish In A Small Pond" Archived 29 November 2006 at the Wayback Machine 21 August 2006. Retrieved 10 December 2006
  11. ↑ Michael Carney, Trade Me Success Secrets, Activity Press, Auckland 2005
  12. ↑ NZX: By Company Released 6 March 2006. Accessed 10 December 2006
  13. ↑ "Fairfax To Acquire Trade Me, New Zealand's Leading Internet Business" Archived 15 December 2006 at the Wayback Machine 6 March 2006. Retrieved 10 December 2006
  14. ↑ "Fairfax sells Trade Me to cover debts". 3 News NZ. 16 December 2012.
  15. ↑ "Fairfax completes Trade Me sale". The New Zealand Herald. 17 December 2012.
  16. ↑ "Trade Me profit beats expectations". 3 News NZ. 21 February 2013.
  17. ↑ "Old Friends has now closed". Archived from the original on 19 January 2016. Retrieved 12 December 2016.
  18. ↑ "SafeTrader has closed - Announcements | Trade Me". trademe.co.nz. Archived from the original on 20 February 2018. Retrieved 20 February 2018.
  19. 1 2 "Terms and Conditions". Trademe.co.nz. 9 November 2011. Retrieved 23 December 2011.
  20. ↑ "Fair Go - Episode 14: June 8, 2005". Television New Zealand . Retrieved 23 November 2011.
  21. ↑ "Complaint to ASA (.rtf)". Archived from the original on 17 February 2012. Retrieved 23 December 2011.
  22. ↑ Kloeten, Niko (6 November 2008). "Trade Me trying to 'intimidate', says auction rival". National Business Review . Archived from the original on 27 September 2011. Retrieved 23 November 2011.
  23. ↑ The Aucklander - Newbie takes on Trade Me
  24. ↑ "Guilt Upon Accusation: New Zealand Businesses". Creative Freedom NZ. Archived from the original on 24 July 2011.
  25. ↑ The New Zealand Listener Archived 28 September 2006 at the Wayback Machine - Bidding War
  26. 1 2 "Illegitimate bids removed from demolition auction". Newstalk ZB . 1 August 2012. Retrieved 7 August 2012.
  27. ↑ "Trade Me Auction 58555525". Trademe.co.nz. 3 June 2006. Retrieved 23 December 2011.
  28. ↑ "Trade Me Auction 611109951". Trademe.co.nz. 10 July 2013. Retrieved 10 July 2013.
  29. ↑ "Scary washing machine. No really, its terrifying!". Trade Me. 18 June 2009. Retrieved 23 December 2011.
  30. ↑ Mathewson, Nicole (3 August 2012). "Boy to push button for implosion". The Press . Christchurch. p. A3. Retrieved 6 August 2012.
  31. ↑ "Trade Me Auction 25682983". Trademe.co.nz. 22 April 2005. Retrieved 23 December 2011.
  32. ↑ "Hug beats slap with bidders". Auckland-life.com. Archived from the original on 23 December 2011. Retrieved 23 December 2011.
  33. ↑ But on 24 May 2009, Allan and Shelly Holland from Gore, New Zealand smashed it. http://www.trademe.co.nz/Browse/Listing.aspx?id=218710429 Trade Me Auction 36725938
  34. ↑ "Trade Me Auction 52360702". Archived from the original on 29 June 2006. Retrieved 1 April 2006.
  35. ↑ "Trade Me Auction 55824140". Archived from the original on 27 September 2007. Retrieved 9 September 2006.
  36. ↑ Trade Me Auction 57001645
  37. ↑ "Banned & Restricted Items" . Retrieved 26 May 2007.
  38. ↑ "Trade Me Auction 59664487". Trademe.co.nz. 16 June 2006. Retrieved 23 December 2011.
  39. ↑ "Bikini bid 'a hoax'". The Sydney Morning Herald . NZPA. 20 June 2006. Retrieved 23 November 2011.
  40. ↑ "virgin mary image on pebble for sale - TradeMe.co.nz - New Zealand". TradeMe.co.nz. 31 October 2007. Retrieved 23 December 2011.
  41. ↑ Trade Me - "Lixtor.co.nz FOR SALE starting bid $100,000,000 (Google Cache)" [ dead link ]
  42. 1 2 "Scoop - "Lixtor is FOR SALE for $100,000,000 on TradeMe"". Scoopit.co.nz. Archived from the original on 16 February 2012. Retrieved 23 December 2011.
  43. ↑ Lixtor.co.nz FOR SALE starting bid $100,000,000 [ permanent dead link ]
  44. ↑ Sachdeva, Sam (24 February 2010). "Bitter humour over Telecom's XT woes". The Press . Retrieved 23 November 2011.
  45. ↑ "Concern XT outages putting lives at risk". One News . 23 February 2010. Retrieved 23 November 2011.
  46. ↑ "XT Network For Sale". Trade Me. 1 March 2010. Retrieved 23 December 2011.
  47. ↑ "Trevor Mallard sells festival tickets online at a profit". The Dominion Post. 16 February 2012. Retrieved 17 March 2012.

Further reading

Two how-to books about Trade Me have been published:

Insider Michael (MOD) O'Donnell has published a comprehensive book on the rise of Trade Me:

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