What Types of Online Auctions Are There?

I've never really given much thought to the issue of online auctions. Recently, I had the opportunity to research this issue and was rewarded with some very interesting information.

Online auctions are very simple, platform or process or method has been developed to provide bidders for various products and services, how to buy from vendors via the Internet. This type of transaction is done through various types of auction software.

Types of Online Penny Auctions

The three main types of auctions on the Internet is limited in these categories:

    * Auctions face-to-face - they offer the most significant variety of products available for sale and value. For the most part, will have to deal with people in these transactions. But beware of companies that dump their goods in total reserves, at an auction and set a minimum price for close to retail price.
    * Commercial auctions - as the name suggests, this method entails companies openly sell their products in this format. Surplus materials and products, equipment which has been refurbished and discontinued items are now on the market.
    * Real-time web casts - these auctions are broadcast live over the Internet. Applicants can submit their bids either by post or through auction on the Internet. Pre-registration is almost always required to participate.

Reserve Price

A note should be added here about the term "reserve price" This term applies to all the above methods of auctions. There are two types of auctions: reserve auctions and absolute or non-reserve auctions.

Reserve auctions: a minimum bid (or offer reserve) is established. If the bid does not reach the minimum, there is no sale. The reserve price can be kept secret if you want, but if no bids above the reserved price, there will be no sale even if the bids have been placed.

Absolute or non-reserve auctions: these auctions have reserve prices. The sale is guaranteed as long as there is a single bid is placed.

Advantages of on-line auctions compared to traditional auction houses

Online auction business platforms have certain advantages over the traditional auction houses.

    * The auctions and sales can be made 24 hours a day, seven days a week
    * There are no geographical restrictions
    * A large number of buyers who have different interests
    * The transaction costs may be lower because the item should not be moved until sold. The movement of the item only one time can save significant amounts, depending on size.

Online auction business model is an interesting idea, born of the technological prowess to goods and market services. Where else could you buy a big screen television for $ 50 in Germany from the comfort of your living room with the United States? We have come such a long way!