Online auctions work much the same as standard auctions. Find out everything you need to know about how online auctions work here.
How Online Auctions Work
Online auctions work much the same as standard offline auctions, except they are 100% web based. Web users can buy a variety of goods and products on auction through a typical bidding process. As a seller, you can also upload multiple lots to an auction, or only one at a time.
Online auctions rely on a database of information and multiple streams of data to back up the process. This includes all user information, all auction or lot item information, starting bid prices, bids made, as well as what the final and selling bids were. It’s a comprehensive system of consistent data collection and analysis that enables accuracy and dependability in online auctions.
User Profiles For Online Auctions
Users wanting to bid in online auctions need to register a user profile. This information is essential in order to match users to bids, and bids to products. The database will also match the seller’s user profile to the lots they are putting on auction and the amount gained at the end of the auction.
Bidding for auctions ends at a certain time whereby no further bids will be accepted. At the end of the auction, winners with the highest bids are expected to pay for the lots they won. Their user profiles will be linked to online banking or payment functionality so that the transaction can be finalised. Alternatively, buyer and seller will communicate and arrange for payment of the lot and delivery of the goods.
Payment options could include electronic funds deposits (EFTs), payment by credit card, payment by debit card or cash. These can be dependent on the platform being used or the seller’s preferences. Typically, payment is required before any arrangements for delivery of goods will be made.
Advantages Of Online Auctions
Online auctions create ease of use for users who can’t physically be present at an offline auction. This is among many advantages that include:
• Real-time bidding, which mimics the circumstances of an offline auction
• Buyers can bid from anywhere around the world
• There is minimal disruption at asset location
• Assets from multiple locations can be included on one auction
• Cost-effective for both sellers and buyers
• Transparent, auditable post-auction reporting
Find out more about our online auctions and either becoming a buyer or seller.