Online auction on Internet is a virtual auction; the seller sells his niche product to the person who offers the highest price against the offer. Online auction have now become a real hit web-story and a common platform where millions of people enjoy the privilege of selling and buying opportunity from all over the world via hi-speed Internet connectivity.
Online auctions are of different types like reserve auction, straight auction, private auction, Dutch auction, and overstock auction. Classic Dutch auction is also known as reverse auction, bidder’s choice, and Dutch auction. Alternatively, English auction is otherwise names as absolute auction, ascending price auction, and Yankee auction etc.
In online auction, purchase proposals are called bidding and those who propose for bidding are called bidders.
Out of different types of auctions, English auction is the most common and popular module of online auction processes.
There are many websites where online auctions are conducted and bidders can participate in these bidding processes by their online presence. It has become a popular way to make money thus has gained immense popularity worldwide.
Apart from being effective as money making process, there are some more unique advantages of online auction. The major advantages are narrated here in outline details.
Online auction is an easy and simple auction process; because of its virtual nature, it has no geographical limitation and thus it has an immense wide reach for the buyers as well as for the sellers. There is hardly any cost involved to participate in online auction and there is no limit for participators in this bidding process. This increased accessibility added extra penetration level to online auction process and improves profit range of both sellers and purchasers.
There is no time limitation in online auction. The items can be posted at any time in a day and the purchasers can view the products as many times they wish sitting at the privacy of their own place. The products for sale remain listed for minimum 10 days so the bidder gets adequate time to declare his best quote.
The flexibility and increased profit ratio in online auctions attracts lot many consumers. The flexibility to join at any time and from anywhere in the world has made this online business plan convenient and accessible for all interested bidders. Most of the biddings are found in lower-than-market rate which has added an outstanding recognition for online auction in midst of other auction businesses.
Sellers find the online auction process convenient because this direct process does not include other associated selling costs and the sellers can offer their commodities higher-than-market retail prices. The simplicity and quick response is another main reason for the great popularity of this e-business process.