How to Build an Auction Website like eBay for Online Bidding?

Introduction

An auction website, a cutting-edge digital platform that completely transforms the way users interact and bid on a vast array of products and services within an ever-evolving marketplace. Among the world-renowned auction sites, eBay stands out as a shining example of success, reshaping the landscape of e-commerce. If you’re eager to venture into the realm to build an auction website like eBay, then you’ve landed in the perfect spot to kickstart your journey.

Within this comprehensive guide, we will delve deep into the intricate steps required to construct an auction website that mirrors the excellence of eBay. Starting from the initial meticulous planning stages and innovative design approaches to the intricate realms of development and strategic marketing, our primary aim is to equip you with an in-depth understanding of the multifaceted process involved in laying the foundation for a thriving online bidding platform. Join us on this exciting voyage of innovation and entrepreneurship as we unveil the hidden secrets to crafting a successful auction website that not only captivates users but also propels business expansion.

What is eBay?

eBay, headquartered in San Jose, California, is an American multinational e-commerce corporation renowned for its user-friendly online auction platform that effectively connects consumers and businesses worldwide. Established in 1995 by Pierre Omidyar, eBay has not only survived but thrived, evolving into a powerhouse in the online marketplace industry.

With a diverse range of products and services available, eBay captivates millions of users daily, facilitating transactions across various categories such as electronics, fashion, collectibles, vehicles, real estate, and more. Its intuitive interface and extensive reach have revolutionized online commerce, creating a unique space for buyers and sellers to engage in exhilarating bidding activities. eBay’s enduring commitment to convenience and innovation continues to set the standard in the digital marketplace realm, shaping the landscape for future e-commerce endeavors.

Also Read: How to Create an App like eBay?

Current Market Insights of eBay Website

Global Reach and User Base: eBay boasts a vast global footprint, engaging millions of active users across more than 190 markets. Its international presence is a testament to the platform’s adaptability and appeal across diverse cultures and economies.
Diverse Product Listings: The platform offers an extensive array of product categories, from brand-new items to vintage collectibles, attracting a wide spectrum of buyers and sellers. This diversity not only fuels user engagement but also fosters a competitive bidding environment.
Economic Impact: eBay significantly contributes to the global e-commerce economy, facilitating billions of dollars in transactions annually. Its impact extends beyond sales, influencing small businesses and individual sellers by providing a venue to reach a larger audience.
Technological Advancements: Staying ahead with cutting-edge technology, eBay incorporates AI and machine learning to enhance user experience, optimize search functionalities, and improve transaction security, thus setting industry standards for e-commerce platforms.
Sustainability Efforts: Recent years have seen eBay committed to promoting sustainability, with initiatives aimed at reducing environmental impact and encouraging the sale of pre-owned and refurbished goods to extend product lifecycles. This aligns with the values of socially responsible consumers.

How Does a Website like eBay Work?

eBay, a globally recognized e-commerce platform, thrives on its simple yet robust business model that has revolutionized online shopping. Serving as a vital link between buyers and sellers, eBay offers a vast and diverse online marketplace that caters to a wide range of products and services. Buyers benefit from the platform’s user-friendly interface, enabling them to explore various categories, place bids, or make instant purchases with ease and convenience.

On the other hand, sellers on eBay have a great opportunity to showcase their merchandise, set competitive prices, and interact with a broad customer base to drive sales. The platform’s revenue is generated through transaction fees and strategic advertising placements, which fuel eBay’s continuous efforts to enhance the user experience. By focusing on refining its interface, ensuring secure transactions, and providing top-notch customer support, eBay has cemented its reputation as a reliable and trusted e-commerce hub. This commitment underscores eBay’s dedication to creating a seamless and efficient online shopping environment that prioritizes customer satisfaction and convenience.

5 Best Online Auction Websites like eBay

Amazon

Amazon, a renowned household name in the vast realm of e-commerce, stands as a beacon of convenience for consumers worldwide. This giant of online retail not only provides a vast array of products and services but also offers a seamless shopping experience through its expansive online marketplace. With its intuitive and user-friendly interface, Amazon empowers buyers to effortlessly explore, compare, and bid on items using their trusted Amazon accounts.

Moreover, sellers find Amazon to be a lucrative platform due to its extensive customer base and streamlined fulfillment processes. By leveraging Amazon’s reach and operational efficiency, sellers can establish a strong presence in the competitive e-commerce landscape, positioning it as a compelling alternative to traditional platforms like eBay.

eBid

eBid, a swiftly rising contender in the online auction sphere, distinguishes itself with its cutting-edge and budget-friendly platform. Central to its ethos is a fee-free structure, guaranteeing users a smooth navigation experience alongside crucial functionalities such as secure transactions and dependable customer service. This distinctive blend establishes eBid as a captivating and user-focused option, pitting it against its bigger rivals in the fiercely competitive online auction industry. By prioritizing user satisfaction and technological innovation, eBid aims to revolutionize the online auction landscape and carve out its niche in the digital marketplace.

Etsy

Etsy, known as a platform for handmade, vintage, and craft items, has captured the essence of creativity and individuality in the online marketplace. It has established itself as a hub for unique products crafted by independent sellers worldwide, offering buyers a treasure trove of one-of-a-kind items while championing small businesses. What sets Etsy apart is its commitment to fostering a sense of community and promoting sustainability, resonating strongly with a growing segment of conscientious consumers seeking ethically sourced goods. By nurturing creativity and empowering small enterprises, Etsy has not only cultivated a devoted customer following but has also emerged as a frontrunner in the specialized domain of handmade and vintage merchandise.

Auction.com

Auction.com, a ground-breaking platform in the real estate auction market, has digitized traditional auctions and streamlined the process of buying and selling properties online. With its advanced search tools, efficient transaction processes, and specialized support services, Auction.com has redefined the experience of purchasing residential or commercial real estate through live bidding events. Its user-friendly interface facilitates direct communication between buyers and sellers, reducing the need for intermediaries and ensuring transparency in transactions. Moreover, Auction.com’s mobile app makes it possible for buyers to participate in auctions from anywhere, making real estate investing more accessible and convenient than ever before.

BidSpotter

BidSpotter, a leading player in the online auction industry, has redefined the landscape of how industrial and commercial goods are transacted. With a diverse range of specialized auctions covering machinery, vehicles, equipment, and beyond, BidSpotter opens avenues for buyers to discover one-of-a-kind items at competitive prices, simultaneously offering sellers a global stage to engage potential customers. Through its innovative live bidding functionality and real-time notifications, BidSpotter ensures a transparent and seamless auction environment that benefits both buyers and sellers. Moreover, backed by a secure payment infrastructure and an extensive buyer protection policy, BidSpotter stands out as a reliable platform for facilitating high-value transactions.

How Do Online Auction Websites Like eBay Make Money?

Aside from the convenience and efficiency they offer for buyers and sellers, online auction websites like eBay also generate significant profits through their business model. These websites typically make money through different sources, including but not limited to listing fees, transaction fees, advertising revenue, and membership subscriptions. For example, eBay charges a small fee for every item listed on its platform and takes a percentage of the final sale price. Additionally, eBay also earns revenue from sponsored listings and advertisements displayed on its website.

Sellers’ Fees

One of the primary ways online auction websites make money is through charging sellers fees for listing items on their platform. This fee varies based on the value and category of the item being listed, but it can range from a few cents to hundreds of dollars. These fees are an essential source of revenue for auction websites, as they provide a steady stream of income regardless of whether the item is sold or not.

Insertion Fees

In addition to listing fees, some online auction websites also charge insertion fees. These are one-time charges for each item listed on the platform and can range from a few cents up to a fixed amount, depending on the website’s policies. Insertion fees are often used by auction websites as an initial barrier of entry for sellers, ensuring that only serious sellers with valuable items list on their platform.

Add Listings

Another method through which online auction websites generate revenue is by offering add-listings. These add-listings provide sellers with the opportunity to improve or advertise their listings further. For instance, sellers can add more images, showcase their listings in search results, or feature them in a special section dedicated to highlighted items. While add-listings usually involve an extra fee for the seller, they play a crucial role in boosting the visibility and likelihood of selling their items successfully.

PayPal Fees

PayPal is widely recognized as a top choice for payment on online auction platforms due to its convenience and security features. In addition to facilitating transactions, PayPal earns revenue by imposing fees on sellers for every payment received. These processing fees are calculated based on the transaction amount, contributing not only to the platform’s income but also offering users a trustworthy and user-friendly environment to conduct their online transactions.

Must-Have Features of Online Bidding Websites Like eBay

1. General Features of an Online Bidding Portal

Listing

The fundamental feature of an online bidding website is the essential capability to list a wide array of items for sale. This crucial functionality empowers users to effortlessly upload high-quality images showcasing the intricate details of their items, offering potential buyers a visually rich experience. Additionally, comprehensive descriptions and any relevant information can be included to provide a thorough overview, enhancing user engagement and attracting a broader audience to participate in the auction process. By facilitating a detailed presentation, users can effectively communicate the value of their items, fostering trust and interest among potential buyers, thus enriching the overall auction experience.

Bidding

To engage in the auction process, users must be able to make bids on their preferred items. Bidding portals typically operate with two primary methods: Bid-based (manual) and Automatic bidding. A bid-based platform allows users to manually enter bids as they deem fit for a particular item, whereas automatic bidding enables users to set a maximum price they are willing to pay, and the system will automatically place bids on their behalf until that threshold has been reached. This feature not only provides an efficient way to engage in the bidding process but also ensures a fair and competitive marketplace among buyers.

Secure Transactions

As with any online marketplace, security is of utmost importance. Online bidding websites must ensure that all transactions are secure and protected to safeguard both buyers and sellers’ financial information. This includes implementing measures such as SSL encryption, secure payment gateways, and fraud detection systems to prevent any unauthorized access or fraudulent activity. Additionally, having a transparent and reliable dispute resolution process in place can further instill confidence in users and ensure a positive experience for all parties involved.

Payment Gateway Integration

Payment gateway integration is another essential aspect of online bidding platforms. To make the bidding process seamless, users must be able to make payments conveniently and securely, using a variety of payment methods. This includes credit/debit cards, digital wallets, bank transfers, and even cryptocurrency in some cases. By offering multiple payment options, bidding portals can cater to a broader audience and provide a convenient and flexible payment experience.

2. Advanced Features of an Online Bidding Website

Special Tools/Services

Aside from the fundamental bidding functionality, some online bidding websites may provide innovative tools and services to elevate the user experience. For instance, these platforms could offer features such as automatic bid increments that allow users to set predefined bid increases, proxy bidding where the system automatically places bids on behalf of the user up to their set maximum, and engaging real-time auctions that create a sense of urgency and excitement among bidders. By incorporating these advanced features, online bidding platforms can attract a wider audience and infuse more thrill and dynamism into the bidding process.

Analytics

Incorporating analytics into an online bidding platform is crucial for enhancing user experience and platform efficiency. By utilizing various metrics like bid history, average bid amounts, popular items for sale, and user engagement patterns, both buyers and sellers can gain valuable insights into market trends. This data empowers users to make informed decisions, ultimately improving their bidding strategies and increasing successful transactions. Furthermore, administrators can leverage these analytics to proactively detect and address any potential issues or fraudulent activities on the platform, ensuring a secure and trustworthy environment for all users.

Multilingual and regional support

To effectively cater to a diverse global audience, online bidding platforms must not only provide multilingual support and regional customization options but also ensure seamless navigation for users from various countries and backgrounds. By offering a choice of languages and currencies, individuals can engage comfortably in auctions without facing language barriers or confusion over prices. This inclusive approach not only enhances user experience but also broadens the platform’s reach and potential in the international market, fostering a more connected and accessible online auction environment for all participants.

Resources and programs

To remain competitive and relevant in the ever-evolving online bidding market, platforms must prioritize continuous investments in developing and enhancing their resources and programs. This includes not only the regular introduction of innovative features and enhancements to user interfaces but also the provision of in-depth educational materials to support users. Additionally, the implementation of loyalty programs can serve to incentivize and engage frequent users, fostering a sense of belonging and commitment.

By embracing these multifaceted strategies, platforms can not only attract a dedicated customer base but also ensure they stay abreast of the latest industry trends and advancements. This proactive stance not only enhances customer loyalty but also positions platforms for sustained success in the rapidly changing digital landscape, fostering long-term growth and competitiveness.

Tech Stack for Setting up a Bidding Site

In today’s tech-driven landscape, the success of an online bidding platform relies heavily on its underlying technology and infrastructure. To ensure a robust and efficient system that can handle high volumes of traffic and transactions, platforms must carefully consider their tech stack.

The essential components of a bidding site’s tech stack include:

1. SaaS and CMS: For Those Who Prefer a Readymade Solution

Software as a Service (SaaS) and Content Management Systems (CMS) provide users with an out-of-the-box solution for building their bidding site. These all-in-one platforms offer features such as user management, payment processing, and customizable templates to help tailor the platform to the specific needs of the business. Some popular SaaS and CMS options for creating bidding sites include Shopify, WordPress, and Wix.

2. Django or RoR: For Those Who are Looking to Create a Solution Completely From Scratch

Django and Ruby on Rails (RoR) stand out as two of the most widely used open-source frameworks for crafting intricate web applications. These platforms boast a plethora of features and seamless integrations that empower developers to craft a bespoke bidding site from the foundation up. Leveraging Django’s robust built-in authentication and user management system, alongside RoR’s expansive library of gems, equips developers with a sturdy groundwork to establish a dependable and expandable bidding platform that can cater to a diverse array of user needs and preferences.

How to Make An Auction Website like eBay for Online Bidding?

To build a bidding site like eBay, one must first understand the essential features that make eBay such a successful online marketplace. These include a user-friendly interface, secure payment processing, and robust seller and buyer management systems. Additionally, implementing features such as real-time bidding and product listing optimization can enhance the overall user experience and attract more users to the platform.

Step 1. Marketing Research

Before embarking on the complex journey of designing and developing the bidding site, it is crucial to emphasize the significance of conducting thorough market research. This meticulous analysis is aimed not only at identifying potential competitors but also at delving deep into the intricate details of target audience demographics. By unraveling these critical insights, the research process can further assist in pinpointing unique selling propositions and innovative features that will empower the new bidding platform to stand out and establish its distinct presence in the competitive market arena. Ultimately, this in-depth research approach will lay a solid foundation for the bidding site to flourish and excel in the dynamic landscape of online auctions.

Step 2. Building a list of Product Specifications

After conducting comprehensive market research, the next step is to build a list of product specifications. This process involves outlining the core features, functionality, and design elements that will bring the bidding site to life. From creating user profiles and managing bids to incorporating payment gateways and optimizing search results, every aspect must be carefully considered and planned out in detail.

Step 3. Prototype Design

Once the product specifications have been carefully reviewed and approved by the team, it is crucial to proceed with the next phase: designing a prototype. This pivotal stage includes developing a rudimentary model of the bidding platform that encompasses all the fundamental features and design aspects previously identified. The prototype serves as a tangible visualization of the ultimate product, enabling comprehensive testing and the collection of valuable insights from prospective users for further refinement and enhancement.

Step 4. Creating an MVP

After the prototype has been meticulously tested, refined, and proven successful, the next crucial step is to transition to the development of a Minimum Viable Product (MVP). This pivotal phase encompasses the creation of the foundational version of the bidding platform, meticulously incorporating all essential features and functionalities required for its operation. By introducing the MVP, businesses can expedite their product launch into the market, facilitating the collection of invaluable feedback from users. This feedback serves as a cornerstone for continuous improvement, ensuring that the product evolves in alignment with user needs and demands, ultimately enhancing its market competitiveness and user satisfaction.

The iterative process of refining the MVP based on user feedback enables businesses to tailor their product precisely to market demands. This iterative approach fosters a customer-centric mindset, driving product development towards meeting and exceeding user expectations. Moreover, the strategic implementation of user feedback leads to increased user engagement, loyalty, and brand advocacy, establishing a strong market presence and fostering long-term customer relationships.

Step 5. Preventing Security Issues

In today’s digital age, security breaches pose a significant concern for businesses and their customers. Therefore, it is imperative to build robust security protocols into the bidding platform during its development phase to ensure user data protection and secure transactions. This entails incorporating stringent authentication methods, encrypted payment gateways, and regular vulnerability assessments and updates.

Moreover, establishing clear Terms of Service (TOS) and Privacy Policies helps businesses establish trust with their users by clearly outlining how their data is collected, used, and protected. Implementing these measures not only protects user privacy but also safeguards the reputation of the business as a credible and trustworthy platform.

In addition to technical security measures, it is essential to train employees on best practices for handling sensitive user information and detecting potential threats. This includes implementing strong password protocols, conducting regular data backups, and maintaining strict access control to sensitive data. By prioritizing security from the outset, businesses can mitigate potential risks and build a secure platform that users can trust.

Step 6. QA and Testing

Before launching a bidding platform, it is crucial to thoroughly test and QA all aspects of the platform. This includes testing for functionality, usability, compatibility, performance, and security. Furthermore, conducting user acceptance testing (UAT) with a diverse group of users can help identify any remaining issues or improvements that need to be made before launch.

Additionally, continuous QA and testing should be incorporated into the ongoing maintenance and development of the platform to ensure it remains secure and functioning properly. This can include conducting regular security audits, performance testing, and user feedback surveys.

By prioritizing QA and testing, businesses can ensure their bidding platform is reliable, efficient, and user-friendly – ultimately leading to a positive user experience and increased trust in the platform. Lastly, it is crucial to have a contingency plan in place for any potential issues or bugs that may arise after launch, as well as regularly updating and improving the platform to meet evolving security standards.

Step 7. Launch and Support

After thorough testing and QA, it’s time to launch the bidding platform. This involves marketing and promoting the platform to attract users and generate interest.

Once launched, businesses must also provide ongoing support for users. This can include offering user training, providing a help desk or customer service team, and continuously monitoring and addressing any issues that may arise.

By launching a well-tested platform and providing strong support, businesses can ensure a successful and positive experience for their users. Additionally, actively seeking and incorporating user feedback can lead to continued improvements and enhancements to the platform, further increasing its value and usability. Overall, launching a bidding platform requires careful planning, development, testing, and ongoing support to create a successful and valuable tool for both buyers and sellers.

Step 8. Building a Full-Fledged Product

Once the bidding platform is launched, businesses must focus on constantly improving and building upon their product to remain competitive in the market. This can involve adding new features and functionalities, expanding into new markets or industries, and integrating with other platforms or technologies.

Additionally, businesses may need to adapt to changing user needs and preferences, as well as keep up with advancements in technology. By constantly evolving and enhancing their product, businesses can maintain a strong position in the market and continue to attract users.

How much does it cost to Build an Auction Website like eBay?

The cost to build an auction website similar to eBay can vary widely depending on the scope of the project, the complexity of features, and the platform’s design and functionality requirements. For a basic version with essential features, businesses can expect to spend anywhere from $10,000 to $50,000. However, for a more advanced platform that includes custom features, high-end design, and sophisticated technology integrations, the cost can surge to between $50,000 and $200,000 or more. It’s important to note that these figures are initial development costs and do not include ongoing maintenance, support, or future upgrades and enhancements.

Cost Breakdown for Building an Auction Website

Initial Development Cost: For a basic yet functional auction platform, businesses should budget between $10,000 and $50,000. This range covers essential features similar to eBay’s early stages.
Advanced Features and Design: To incorporate custom features, sophisticated design elements, and advanced technology integrations, costs may escalate to $50,000 to $200,000 or higher.
Ongoing Costs: It’s crucial not to overlook expenses related to maintenance, support, and periodic upgrades. These could significantly increase the total investment over time.
Marketing and User Acquisition: Effective marketing strategies and user acquisition campaigns are critical for gaining traction and require a substantial budget.
Scaling and Expansion: As the platform grows, expanding into new markets or industries may require additional investment in technology and marketing.

How can iTechnolabs help you to Build an Auction Website like eBay?

At iTechnolabs, we pride ourselves on our profound understanding of the intricate nuances involved in crafting a successful auction platform akin to eBay. Our dedicated team of highly skilled professionals brings together a wealth of knowledge accumulated over many years of hands-on experience in developing cutting-edge and innovative virtual marketplaces. These dynamic platforms are meticulously designed to not only optimize user engagement but also demonstrate a proven track record of amplifying revenue opportunities for our valued clients. By prioritizing a meticulous approach to both design and functionality, we are committed to delivering bespoke solutions that not only meet but exceed expectations, serving as catalysts for sustainable business expansion and success. Here’s how we can help you build your dream auction platform:

Customized Solutions: Our team of experienced professionals is dedicated to crafting tailored solutions that align perfectly with your unique business needs and long-term goals. By collaborating closely with you, we ensure that the custom-built platform we deliver not only meets but exceeds your expectations, setting you up for success in the competitive auction market.
Advanced Technology Integration: At our core, we embrace cutting-edge technologies and innovative tools to develop auction websites that are not just robust and secure but also highly scalable. Whether it’s seamless payment gateways, efficient shipping integrations, or AI-driven recommendation engines, we are committed to integrating the latest advancements to elevate the performance of your platform.
User-Friendly Design: With a keen focus on user experience, our team of designers excels at creating intuitive and responsive interfaces that guarantee a smooth and engaging experience for users across all devices. From simplified bidding processes to hassle-free checkout procedures, we prioritize user-centric design to enhance user satisfaction and drive conversions on your auction website.
Cost-Effective Solutions: Recognizing the significance of cost-efficiency in today’s market, we are dedicated to providing budget-friendly solutions without compromising on quality. Our aim is to maximize the value of your investment by delivering high-quality auction websites that are not only cost-effective but also sustainable for long-term growth and success.
Post-Launch Support and Maintenance: Beyond the launch of your website, our commitment to your success continues with comprehensive post-launch support and maintenance services. We ensure that your platform operates seamlessly, addressing any evolving needs of your business and users to maintain peak performance and user satisfaction.

Are you looking for eCommerce marketplace development services?

Choosing iTechnolabs to build an auction website akin to eBay brings a multitude of benefits to your digital venture. With our deep understanding of e-commerce dynamics and proficiency in the latest technologies, we empower your platform to stand out in the competitive auction market. Our approach ensures that your auction website is not merely a marketplace but a comprehensive ecosystem where buyers and sellers can engage securely and efficiently. The integration of AI-driven recommendation engines personalizes the user experience, pushing relevant products to the forefront and significantly increasing the chances of a sale. Additionally, our dedication to creating user-friendly designs results in an intuitive platform that retains users and encourages repeat visits. The cost-effective solutions we offer do not compromise on quality, ensuring that every dollar spent maximizes the return on your investment. Lastly, our promise of dedicated post-launch support and maintenance guarantees that your platform remains current, secure, and aligned with your evolving business needs, making iTechnolabs an ideal partner for launching a successful auction website.

Expertise in E-Commerce: iTechnolabs excels in the realm of E-Commerce, offering a profound understanding of the intricate e-commerce landscape. This expertise ensures that your auction website not only functions efficiently and effectively but also stands out amidst the digital competition.
Cutting-edge Technology: By leveraging cutting-edge technologies and advanced tools, iTechnolabs crafts a robust, secure, and scalable auction platform. This technological prowess enables the platform to adeptly accommodate a growing user base and expanding inventory, setting the stage for sustained success.
AI-driven Personalization: Through the seamless integration of AI-driven recommendation engines, iTechnolabs elevates user experience by delivering personalized product suggestions. This tailored approach enhances user engagement, fosters loyalty, and maximizes sales opportunities, creating a dynamic and personalized auction environment.
User-Friendly Design: With a steadfast commitment to user-centric design, iTechnolabs ensures a seamless user experience on your auction website. The emphasis on intuitive design elements simplifies user interactions, facilitating easy browsing, bidding, and purchasing. This focus ultimately boosts user retention rates and fosters lasting customer loyalty.
Cost-Effective Solutions: iTechnolabs’ development strategy revolves around delivering top-notch, cost-effective solutions for your auction website project. This approach not only guarantees quality results but also promises a high return on investment, making your foray into the digital auction realm a financially rewarding endeavor.
Comprehensive Post-Launch Support: Beyond the launch phase, iTechnolabs remains a steadfast partner, offering dedicated support and maintenance services. This ongoing commitment ensures that your website stays abreast of the latest security measures and technological advancements, paving the way for long-term success and unwavering customer satisfaction.

Important: 8 Do’s and Don’ts of eCommerce Application Development

Conclusion:

In conclusion, with iTechnolabs as your trusted partner in developing and optimizing your auction website, you can rest assured that your business is set for sustained success. Our dedicated team of experts will work closely with you to tailor AI-driven personalization strategies that enhance user engagement and drive conversion rates. Additionally, our commitment to crafting user-friendly designs, implementing cost-effective solutions, and providing comprehensive post-launch support ensures a seamless and prosperous journey for your online auction platform. Together, we pave the way for a thriving digital marketplace that exceeds expectations and delights users at every interaction.

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