Online auctions provide an incredible platform where both buyers and sellers can virtually meet and trade an endless amount of goods. Online bidding has made auctions so convenient, straightforward, and less costly. You no longer need to travel for miles just to attend an auction. Sellers too, don’t have to incur extra costs handling and transporting their merchandise to different auction sites. Everyone can buy or sell goods right from the comfort of their homes. All you’ll need is a computer and a consistent internet connection.
How online bidding works
Several things regarding online bidding are similar to the traditional regional auctions that most people are already familiar with. Online bidding, for instance, has both losers and winners. Not everyone who takes part in the bidding will walk away with the products they are interested in. This is especially true when it comes to some of the best and rare online merchandise. Such products attract a wide variety of customers, which increases the competition and ups the bidding. In such instances, once the bidding comes to an end, the individual with the highest bid is declared the winner. He or she will then be expected to pay the exact amount as quoted in his/her winning bid.
Joining an online auctioning site
Once you have decided to take part in online auctions either as a buyer or seller, there are various important things that you need to know.
First, you will be required to sign up in the particular bidding website that you decide to use. In order to participate in online auctions, you must create an account. Registering helps to collect as much information as possible on all the buyers and sellers. The information collected is used to track bids, items being auctioned, and to identify the winners and the amount of their winning bid.
When registering for online auctions, it’s also recommended that you use a new mail. Most online auction websites are known for sending frequent emails to their members. These emails can honestly be a nuisance at times, and this is why you are advised to avoid using your main email account.
Types of Online Auctions
There are two main types of internet auctions:
- Business-to-Person – Business-to-person auction is where a big company or business is selling items directly to the individual customers. In this kind of auction, the products are usually in possession of the auctioning site. When a person earns the winning bid he, therefore, deals directly with the website on how they will do the payments and how they will receive the items.
- Person-to-Person – Person-to-person auction is where a single seller decides to put up his products for auction, selling them directly to the customers. The items being traded here are controlled by the seller. Once the bidding is done and a winner has been identified, they will interact with the seller and discuss how they will deliver the items.
Winning the auction
Public online auctions typically run within given time limits. The bidding process could be scheduled to take place for around four hours. Once this time is over the auction will come to an end, and the website will collect the data to see the person with the winning bid. The declared winner will then get in touch with the vendor through email if it was a person-to-person auction or the website will contact them in case it’s a business-to-person auction.
There are cases where an item could be put up for auction while tagged with a reserve cost. Such products can’t be bid on for a price less than this bid. If at the end of the bidding there is no one close to the reserve price then the item will be retained by the seller and the website until maybe another auction is scheduled.
How to make payments
As a winner of an internet auction, you will be faced with several payment options. These options range from Escrow services, charge card, money order, debit card, cashier’s check, personal check, and money shipments.
Escrow services involve the use of various payment options such as charge card, money order, and checks. A purchaser will first send cash to the Escrow solution, but it won’t be wired to the seller instantly. They wait for the buyer to receive the items and investigate them before completing the payment. It’s therefore, a convenient option which gives buyers a sense of security and confidence when taking part in an online auction.
Charge cards can also be used as they also give customers security. With these cards, one can ask for credit history and pursue compensation in case the products delivered are not satisfactory.
Business-to-person auctions mainly use bank cards. If you are using this auctioning method, you will, therefore, be expected to pay using the bank cards.
Concerns regarding online auctions
The biggest concern when it comes to online auctions is fraudsters. There is quite a huge number of scam websites or sellers who pretend to be selling quality products but end up delivering substandard items. The best way for a customer to deal with such issues is to make sure they remain vigilant in the types of websites they use.