kathy jhones
The online auction is actually a kind of business model whereby, participants from all over the world bid for products and services via the internet. This is made possible by the availability of the auction software which is installed in computers to necessitate the online auctions which are now done everywhere. People have realised that using these auctions to sell products and services, higher profits can be earned which boosts their businesses. The auction software is used to regulate the various processes that are involved in this kind of a business model and also make it more efficient.
People adopt into two main methods of the online auction. We have the English auction and the Dutch auction. The latter is whereby, we have multiple identical items offered in one auction and the winning bidders pay the same price for the items. This means that the highest price at which all the offered items will be sold and it is common in selling treasury bills. With the English auction, the initial price of a product or service is set very low and the price is bid up by some successive bidders until it rises up to a point whereby no bidder can attempt to place any bid above that. At this point, the person with the highest bid wins the item. Almost all the online auctions use the English auction method.
This kind of business model whereby people place bids online is said to be very effective as compared to other auction business models for example the penny auctions. This is because there is no any initial fee as it is seen in the penny auction where the bidder is supposed to pay a non refundable fee which is lost in case he or she fails to win the item. Many people have turned to this kind of auction since they can do it right from their homes without travelling to the auction centres since they only need access to the internet.
Bidders are supposed to be ever alert so that they find the items that they need on the internet so as to place their bids. People are supposed to be connected to the internet and probably have their own personal computers so that they may have access to the internet 24/7. This is actually good simply because the list of the items can be updated by the seller each and every time and thus it is advisable to stay connected all the time for daily updates.
People admire this kind of auction simply because they are not exposed to any risk of losing their money. Bidders can lose their money with the penny auctions although the business game is very open. Nobody can be blamed in case one loses his or her money in the penny auction simply because only one person had to win the item and since it is a probability or a game of chance, somebody has to walk away with the item. The same case applies to the auction via online although no fee is required to be paid initially by the bidders.
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Topics: process plan for online auction