Internet auction is an electronic trading platform where participants can buy products and services through the Internet.
Functionality, reliability, simplicity, speed are one of many advantages of electronic trading.
The most famous electronic auction is now ebay.
Electronic auction ebay
Models of electronic auctions.
There are several types of electronic auctions on the Internet.
English electronic auction model.
There are auctions built according to the standard English model of auctions, which begins with an initial small cost and ends with the limit, when one of the bidders, will offer a price that other participants cannot offer. On the Internet, electronic auctions are very successfully implemented. Offering the maximum for the lot, the one that other trading participants cannot pay, the person wins the auction and will be able to buy a lot.
Dutch electronic auction model.
There is a Dutch electronic auction model, at which the maximum price is set to the lot (product) at the beginning of the auction, which is gradually reduced, that participant who was the first to buy, is considered the winner of the auction and the buyer of the goods.
But most often in electronic auctions, the English method is used.
Strategic advantages of an electronic auction for business.
1- No time restrictions. Applications can be placed round the clock (24 hours per day / 7 days a week), the website of the electronic site works around the clock.
The elements in the list are listed by days (from 1 to 10 at the request of the seller). This gives customers time to choose from, which increases the quality and number of trading.
2- No geographical limiters. Sellers and bidders can participate in electronic trading, where there is access to the Internet. What makes electronic auction more affordable and reduces the cost of “participation” in the auction. This increases the number of lots in the auction (the number of sellers with goods), the number of rates for each lot (that is: the number of participants in the electronic auction). The goods do not need to be taken anywhere, to the city center or to some real auction hall. Everything is much simpler.
3- The intensity of communication of the auction participants. Communication of electronic auction participants is similar to communication in the gambling game. Therefore, this creates many loyal auction participants who enjoy trading.
4- large number of trading participants. Small prices, wide coverage of products and services, ease of access, and other social benefits attract many participants in electronic auctions.
5- a large number of sellers- due to a large number of participants, the benefit of selling the goods is high, so electronic auctions are attractive for trading.
6- Economic network. A large number of sellers, a large number of buyers, sales and purchases stimulates the market and creates a vicious circle, which is increasingly expanding over time. Of course, electronic auction give great prospects for business. For example, you can quickly find what you need and buy. Park of cars, real estate, etc. D.
7- moves business forward, creates a surplus, in general, helps to raise a business to a qualitatively new level.
An example of an electronic auction in business.