What is an online auction?
Online auction is an online business model. Participants participate with online offers for products and services. Online auction sites have special auction software that manages the entire auction process and makes buying and selling work. You can also visit this website to find the best online auctions.
Image Source: Google
Types of the online auction
There are two main types of online auctions.
– English auction
– Dutch Auction
The two auctions use different methods:
o To make an offer, e.g. written, visual or verbal offer.
o Different sectors to bid on, e.g. public or private sector.
o Different bidding order rules may increase or decrease gradually, or increase and decrease simultaneously.
English Auction
In English auctions, prices start at a low level and then gradually rise from successive bidders. In an English auction, the auctioneer of goods or services starts with the lowest price, and the price is increased gradually, or the bidder is also free to increase the price in any increment.
Dutch Auction
In a Dutch auction, the auction starts with a high price level set by the bidder and then gradually decreases until the bidder finds a buyer willing to buy the item at the asking price.
In a Dutch auction, the price of the product is very high in the beginning. Dutch auctions are perfect for perishable items such as groceries and flowers. The decision for a higher starting price is based on the recent history of sales of these items.
