Almost all auction websites use the English Auction System, where the seller determines the initial price of the auctioned item. The price goes u as more bids are cast, although bidding may stop when the last bid reaches the seller's minimum acceptable price. Some sites also support the Reverse Auction System, where the buyer posts the items he likes to purchase. The sellers bid down to gain the right to provide the goods. The seller with the lowest price bid wins the auction. This system is typically used in business-to-business (B2B) procurement. Online auction websites attract more sellers and bidders because of minimal constraints imposed on them. Items are usually listed for several days and buyers are given ample time to compare the auctioned items, and to decide whether to bid or not. Online auction sites generate income a number of ways. Some sites charge buyers and sellers a fixed or a percentage-based listing fee for being allowed to post items for auction. Charges still apply even if no one bid on a listed item. With the aid of on line payment systems, sellers and buyers from anywhere in the world may participate in the auction. eBay acquired PayPal in 2002, validating the importance of payment gateways to online stores. Some sites offer free listings but they charge the seller a closing fee, which applies when a bid is won on the posted item. Other sites offer fixed membership fees charged monthly or annually.
References: Tech by: V. Gonzales from Entrepreneur
No comments:
Post a Comment