Online auctions replicate traditional auctions on the internet, with sellers registering items for auction and setting minimum bids. Online auction sites offer various promotional tools, and bidders can view comments and ratings on sellers. The range of items offered is diverse, and fees are charged to sellers for posting and promotional services, with a percentage of the winning bid also assessed.
Online auctions are auctions conducted via the Internet. The most common structure for conducting an online auction involves registering as a seller on one of the many Internet-based auction sites currently in operation. In most applications, all aspects of a traditional auction are replicated in the procedure used by these online sites, including the winning bidder submitting a payment.
As with any type of auction, the online auction process typically begins with registering a specific item for auction. The seller sets a minimum bid that must be met before someone can win the item for auction. Bidding begins when a bidder registers at least this minimum bid and continues until the end of the auction. At the end of the online auction, the winning bidder submits payment using any of the options previously authorized by the seller, and the auction item is delivered to the winner, usually by mail or courier service.
Today, online auction sites are sophisticated enough to allow sellers to promote their auctions as well as possible. Many sites offer the ability to include multiple electronic images of the featured item, with some also offering visual and audio descriptions, allowing potential bidders to thoroughly investigate the item before placing a bid. Bidders can also view comments and ratings submitted by others who have won auctions held by the seller. This makes it possible to determine in advance the seller’s reliability in terms of responding to inquiries, accurately describing the items they offer for auction, and how quickly items are shipped to winning bidders.
Sellers can often set a specific duration for their online auction, with many of them running for a total of seven days. This generally gives registered bidders the opportunity to search through all currently active auctions and find the ones they are interested in. However, there are several online auction sites that allow sellers to schedule a given auction for as little as forty-eight hours.
In addition to live online auctions that anyone can participate in, there are also closed sites that provide private auction services. Participation in these types of live online auctions is by invitation only and includes a limited number of bidders.
The range of items that can be offered on the typical online auction site is extremely diverse. Children’s clothing, bedding and housewares, vintage magazines, electronics and novelty items are among the most popular offerings. Even large ticket items such as real estate and vehicles can be auctioned in an online environment. Along with dedicated online auto auction sites, the larger general auction sites also allow cars, trucks and other types of vehicles to be posted for auction.
In terms of fees, the typical online auction site charges the seller a small fee for posting the auction, plus incidental fees for any extra promotional services. A percentage of the winning bid is also assessed if the item sells. However, if a particular auction fails to attract attention, the seller usually does not pay any fees on the backend.
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