Firm delighted as car goes in reverse... auction

Dropit directors Peter (left) and Brendan Howell with the reverse auction site's first premium item, a Fiat Punto Easy car.

A Tauranga company has launched a new online reverse auction business.

Dropit - the brainchild of Mount Maunganui company WebSoft - sells items with no reserves, in a one-minute auction process in which the price goes down not up.

Last week saw the site auction off its first premium item, a Fiat Punto Easy car supplied by Tauranga's Farmer Auto Village, worth an estimated $16,940. The car went for $11,869, with about 2500 people watching online and 1135 registered to bid.

During each auction, potential buyers can see how many others are vying for the same item. The website and mobile app have been designed to prevent people accidently buying items - only a very definite swipe up will seal the deal. More than 6000 New Zealanders are registered on Dropit, the company said.

"We were delighted with the result and so was the winner," said Dropit chief executive Peter Howell, who added that the concept combined the thrill of gaming with the world of online shopping.

Since its launch, Dropit players have bought high-end goods such as Bose speakers, iPod shuffles, an Xbox 360, mobile phone top-up vouchers, a Tom Tom navigation unit, a Beach Cruiser Bike, Phil & Teds buggy and Laneway tickets, but the car was the first big item.

Dropit's retail partners provide the auction items in return for profiling of their goods and services.

"We're excited to partner with Dropit to help promote this new way of shopping," said Farmer Auto Village spokesperson Melissa Smith. "Their website and mobile app is slick, fun and fast."

Mr Howell said he was confident Dropit had global potential as people looked for a more lively shopping experience.