What type of auction website should you use for your online auction?
Online auction sites are used when you need something specific. These are the places where you can find rare items that may not be sold in the market or their presence may have been made discontinuous from the shop. There are many online auction platforms available. Most of them charge a very nominal fee for sellers. But there is no visiting charge if you are there to search for your product.
The word “Auction” originates from the Latin verb “agree” meaning to increase.
In modern days, the traditional ways of auction have been transformed into digital with the emergence of new technology. Nowadays, the participants can make a deal from their home, in their comfort and the duration of suction has been replaced by certain software having a bidding countdown clock capability.
The auction can be classified in terms of their bidding strategy
English Auction
English Auction follows the open-cry ascending price protocol. It starts with the lowest price and gradually increases as each participant participates in the bid. Each participant tries to offer the highest price to win the bid. Finally, those who offer the highest bid win it.
It is one of the common procedures used for both online and offline auctions. Its use can be widely seen in the auction in the field of Antiques, Collection items, real estate, pre-owned goods, and cars
Reverse Auction
In this type of auction buyer requests, some particular service or product, and sellers compete among themselves, which leads to a decrease in the bid price. The seller who will provide the service or product to the buyer at the lowest price will win the auction. Hence, this auction is popularly known as a buyer-determined auction. It is used in the area of wholesale trading, freelancing, and Government procurement.
Dutch Auction
Just like a reverse auction, the dutch auction follows the open-cry descending protocol. the only difference between the Reverse auction and Dutch Auction is that, here, there are multiple buyers and one seller.
This type of auction is frequently used in wholesale B2B auction marketplace as well as while selling real estate.
All pay auction
This is a type of auction in which each participant has to pay in the bidding, no matter whether they are winning it or not. This type of auction is similar to the lottery ticket system where people who purchase lottery tickets have a fair chance of winning it.
Penny auction
Penny auction is a special kind of auction in which the bidding amount can be even in several pennies and the buyer whose bid was the last when the timer hit zero will win. In this type of auction, all the participants need to pay entry fees.
This auction is common for buying and selling everyday household goods, electronics items, etc.
First price auction
This is a type of auction in which every participant has to submit a bid privately. The buyer who holds the highest bid will win it.
This is used frequently while auctioning government contracts, Service contracts, Government securities, real estate, cars, etc.
Second Price Auction
The Second price auction has similar functionality as that of the first-price auction. The only difference is that in the second price auction the buyer who submitted the highest bid will win it but he/she has to pay for the second-highest bid.
Its frequent use can be seen in the real estate industry and marketplaces for pre-owned goods.
Unique bid auction
As the name suggests, this is a unique kind of auction in which the highest bid is not going to decide the winner. But depending on the script, the winner is the highest or the lowest unique bid. Here the buyer needs to pay the entry fees.
Silent Auction
This type of auction is used for the good of non-profit organizations and some other charitable events. In this, the bidder participates anonymously ( they can observe the no of attendees but can’t see their names). Dukar-art.com is an online platform for silent auctions.
In short
Many online platforms provide an online auction facility. eBay, eBid.net, and Webstore.com Bonanza.com AuctionZip are some examples. If you want to develop a marketplace for such an auction then you first need a Professional Development team. Their experts will help you or assist you regarding this. Creating this may need time as well as funds. To justify your need, pick up the right strategy that suits you. You need to consult with a professional to develop a commercial website.
