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| Staff Writer |
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A new digital auction platform that charges no commission and allows Thoroughbred sellers to control their own sales is set to challenge the established bloodstock sales companies. Saeed Almaddah, CEO of Saudi Arabia-based BidXSell, believes his technology company's innovative approach will revolutionise how Thoroughbreds are traded globally.
The traditional Thoroughbred sales landscape, with its bustling sales grounds and auctioneer's rhythmic chant, is undergoing a profound transformation. In Australia alone, online Thoroughbred auctions generate approximately US$100 million annually, while the American market continues to expand rapidly since the pandemic-driven digital shift.
"BidXSell was created in consultation with consignors and syndicates who had clientele poached by auction houses to sell in the digital marketplace," Almaddah reveals. "Relationships were getting stressed, so we decided to create the digital auction technology and place it directly into the hands of the stakeholders."
BidXSell's approach in the Thoroughbred sales landscape marks a decisive break from tradition, as it entirely eliminates commissions in favour of a flat listing fee.
"BidXSell is the only digital auction platform in the world that puts the control of the listing, marketing, and sale of bloodstock directly in the hands of the stakeholders, which cuts the cost of selling that stock minimally in half, and for some users, nearly 95%," Almaddah states. "BidXSell charges no commission and no fee to RNA anything listed."
This revolutionary pricing model leaves more capital within the industry for reinvestment. As Almaddah explains, "These funds can be spent on more bloodstock, stud fees, employees, raises, capital expenditures, and normal operating expenses. There is no reason the digital auction market should be held captive by auction houses that are invariably selling stock directly off farms and out of training barns."
The path to creating BidXSell required a unique blend of technical expertise and industry understanding.
"Prior to the creation and launch of BidXSell, the team was tasked with understanding the Thoroughbred market as it emerged digitally," Almaddah explains. "Prior to coding BidXSell itself, the tech team had developed platforms used by large sectors in other areas of the global economy. This experience made the development of BidXSell not as much a challenge in technology, but more so in carrying a legacy industry like the Thoroughbred industry directly into the tech market."
The platform's development coincided with a crucial shift in the industry's digital adoption.
"The internet Thoroughbred marketplace truly took off during the COVID-19 pandemic," Almaddah reflects. "The global pandemic caused internet users to find familiarity with the processes and expectations of the different platforms they used."
Among BidXSell's most innovative features is its private auction functionality, which is designed for high-value bloodstock transactions.
"BidXSell is the only platform in the world that offers a completely private, unlisted auction for speciality and boutique bloodstock offers," Almaddah emphasises. "This feature allows horses (or fractional interests of horses) that would normally be described as 'not on the market' to be discreetly offered to only a select number of potential hand-picked buyers."
The platform's initial sale in August 2024 demonstrated the viability of this approach.
"The initial sale hosted on BidXSell was an important and successful trial balloon as it drew some of the most significant bloodstock buyers in the world who registered to bid," Almaddah reveals. "The significance of the bidders that engaged and registered for the initial sale was absolute proof positive that this perceived obstacle has created one of the site's early opening milestones."
The platform's operational model represents a significant departure from traditional sales processes.
"Whether the seller is a consignor, a trainer, an agent, or a stud farm, the process requires the seller to apply for a sales account," Almaddah details. "Once a seller has an account, a sale can be created, and horses entered. The platform collects the listing fee, which activates the impending auction, and the marketing can then begin."
Transaction security remains paramount."The money transacts like a private sale without auction technology, but the terms and conditions and transfer of ownership are completely in the hands of the seller who maintains the ownership and possession of their asset until all terms are met," he adds.
The platform's strategy for international expansion is particularly focused on emerging markets. The BidXSell team spans the Middle East, Africa, and the United States, bringing diverse expertise to the table.
"We expect our user's natural, technological education period to have some bearing on the timeline in which the platform gains significant market share. A study of the history of Amazon.com is the perfect example of the digital market learning curve, but trends are looking great for BidXSell," Almaddah notes. "Certainly, the growth necessary in these markets to find similar success of the legacy markets in The United States and Europe is significant."
Their approach to the Middle Eastern market reflects deep regional understanding.
"The Middle Eastern market is perhaps the fastest emerging market in the world today," Almaddah states. "Certainly, the Saudi Crown Prince is a person that champions innovation and technological advancement. We are reaching out and working with teams in not only Saudi Arabia but the UAE, Bahrain, Qatar, etc."
The platform's development roadmap reflects ambitious plans for industry transformation.
"BidXSell has a long development list in process," Almaddah reveals. "We have the potential to feature a development that could ignite not only digital markets worldwide but also physical auction markets as soon as six months to a year from now. We like to say that we want to imagine like Walt Disney and code like Elon Musk."
The timing of BidXSell's entry into the market appears strategic, with Almaddah suggesting potential industry consolidation."The word within the American market is that three auction houses vying for market share have caused a saturation. Many feel there is reasonable potential that one of these auction houses will exit the American digital auction market sooner rather than later."
The platform maintains high standards through careful vetting of participants.
"Our platform is built to be user-driven, allowing us to maintain a light and efficient support team to keep costs to the user very low," Almaddah explains. "Many in the industry, while they are using the current digital markets, have quietly complained about the quality of the offerings, while some have coined the venues a 'digital dumping ground'."
The solution lies in seller accountability."While BidXSell is the revolutionary creator of the technology of the platform, it is truly the name and reputation of seller/user that will keep the quality of the bloodstock catalogued higher and engagement of the buying public more focused."
As the global Thoroughbred industry continues its digital transformation, BidXSell's innovative approach could represent a significant shift in how bloodstock is traded worldwide. With its combination of cutting-edge technology, industry-focused features, and competitive pricing model, Almaddah's vision for democratising Thoroughbred sales while maintaining quality and discretion could well represent the future of the industry.
Whether this Saudi-based platform can challenge the established players remains to be seen, but one thing is certain: the traditional sales ring is no longer the only path to successful bloodstock trading. As Almaddah and his team continue to develop their platform, the industry watches with interest to see if this digital revolution will indeed reshape the global Thoroughbred marketplace.