Australian online reverse auction platform Akagu is set to launch on February 28.
Attracting more than 2500 subscribers in its soft launch phase, Akagu claims to be Australia’s first Dutch auction marketplace.
Unlike online auctions already familiar to Australian shoppers, the Dutch auction format starts at a recommended retail price, with the prices dropping periodically rather than the other way around.
Purchasers can bid to secure an item early in the sale or take their chances and wait for a price drop while taking the risk that another shopper may secure the item.
Akagu has already attracted more than 30 retailers to its sales platform.
Akagu founder Jimmy Zhong has secured a $400,000 investment from Melbourne property developer Capital Alliance.
“Ultimately we believe Akagu provides users with a deeper shopping experience where customers are empowered by choice and brands have the opportunity to connect with customers that truly value their products or services
“There’s an increasing demand for smaller-run, independent labels producing higher quality clothing.
"However, much of the time, the price point just isn’t attractive enough to consumers.
"That’s the beauty of Akagu’s reverse auction process - users are given access to high quality pieces at prices
they are willing to pay.
“Our initial sales consistently show an average of 10% on sales margins was recovered by designers, with our highest reaching 46%, so, while the purchaser was driving the price, a valued deal was achieved for all."
Since its first live sale in December 2015, Akagu has achieved a 200% increase in subscriber’s month-on-month.