End-to-end cycle of an exchange on the ScrapBays auction platform
The metals are listed on the platform with the following details:
- Weight in mt (metric tonne)
- Grade (e.g. Copper)
- Grade type (e.g. Dry Bright Wire)
- Starting price (this is the price at which the bidding will commence)
- Reserve price (this is the minimum price that a seller would be willing to accept from a buyer)
- Auction duration
All material is listed on a collection only basis.
ScrapBays charegs a 1% fee of the overall transaction price to the seller.
Potential buyers will then bid on the material on a price per tonne basis, committing to a 1% deposit fee of the overall transaction price. This 1% fee is taken through a card they add on file before placing a bid.
When bidding the potential buyers will be prompted to add their ‘Maximum bid’ to ensure they have the best chance of winning the auction at the best possible price.
All bids are made on the basis that the buyer will collect the material from the area detailed on the listing. Please note, that once the auction is complete there is the option to negotiate delivery outside the platform.
Once the auction is complete and the reserve price has been met, ScrapBays will take a 1% holding fee from the buyer’s card on file. This holding fee will only be charged in the instance that the winning bidder does not pay the full amount into the escrow-like account when prompted to do so.
From here the seller will be prompted to upload the invoice with the full amount of the transaction. It should reflect the same weight added to the original listing and the price per tonne of the winning bid as is the amount that the buyer will be prompted to buy.
The buyer will then be prompted to pay for the full amount. They will pay through the app via bank transfer. ScrapBays will share the bank details (account number, sort code and reference) that the payment should be made to.
There is buyer and seller protection with all payments being held within an escrow-like account until the exchange is complete to esnure security for both parties involved.
Once paid, the original 1% holding fee that was taken on the buyer’s card is cancelled and ScrapBays’ 1% fee will come from the seller.
The contact details (phone and email) of both parties are then shared with one another to arrange a collection time.
It is the buyer’s duty to collect the material, however, as previously mentioned, there is the option to negotiate delivery with the seller off platform.
To ensure full transparency the seller is required to upload a weighbridge ticket and waste transfer note.
They will also have the option to upload a photo of the weigbridge monitor and a photo of the load if the buyer requests it.
If the delivery the delivery has been negotiated off platform, then there will be the option for the seller to upload a delivery note as well.
Once the metals have been received by the buyer they will have time to review the materials.
It’s at this point they will have the option to knock the load and amend the invoice.
The buyer and seller should agree on the amends before the buyer adds the changes to the app as the buyer will only get one chance to knock the load on the platform.
In order to submit a knock, the buyer must upload some form of supporting documentation i.e. a photo of the load or a new weighbridge ticket.
The seller will have to confirm they are happy with the changes on the ScrapBays plaform, before the exchange is complete.
When both parties are happy the money is released from the escrow-like account and the transaction is complete.