Let me start with the numbers of online behavior.
Buy a product 71% Participate in an online auction 26% Sell something online 15%
Now that so many people are engaged in online buying and selling, this article where I explain the types of online auction concepts and online auction websites becomes important.
Below you will learn how different types of online auction websites or online auction concepts work or how online buying and selling works.
(i) Direct Auction There are online auction sites eBay, ebid with a process where sellers upload their auction for sale at a fixed price, buyers come in and buy the…
Such auction websites require sellers to pay the fees listed below
(i) Item postage (free for limited items)
(ii) Final Value Fees (4% for each website)
(iii) Payment Gateway Fees (3.9% for PayPal)
An item that sells for $10 costs the seller nearly $3.5 because most of that money goes to fees.
So how does the seller earn more net profit from the same sales sold in such places online?
Now think of a buyer - a buyer bids higher to win an item or simply buys the item at the price listed on the website.
How often do you walk into a store and negotiate by saying you want to pay a higher price for the product? OR alternatively, how often do you buy the…
(ii) Lowest Unique Bid, Highest Unique Bid.
Here the buyer buys bids and uses them to bid on the products. An auction is started and the buyer has to place their price for the product. ie provide…
Depending on the logic used, i.e. one-time lowest bid or one-time highest bid, the respective member wins. That is, if you have bid a value 'X' that no other member…
At such auctions, the chances of winning the product are very slim. You are also dependent on the chance of winning the product.
So, in order to buy a product from such auction websites, you really don't need to be a serious buyer and have a lot of money left over in bidding…
And here the most important thing is that sellers do not upload auctions, the sellers are just the site. So the profit from the listing costs goes entirely to the…
There are a few websites that you will find if you are looking for the lowest unique bid auctions or the highest unique bid auctions.
(iii) Penny Auctions. This is an auction on sites like Swoopo etc where the auction starts with the price of the product as zero and increases with each bid. To…
Here is the seller's website. All products are offered for sale on the website itself. All proceeds from your bidding costs go to the site as profit. However, there is…
You can get a list of penny auction sites if you search for the term penny auction site.
(iv) Reverse Auction
This is my favorite. You've seen auctions where the buyer is asked to bid for a price increase of the product, you've seen auctions that have hurt the seller's bottom…
Here the seller lists the price of the product. The seller also benefits by increasing the price of the product every time the buyer sees the current price.
As the buyer price falls, the seller price rises.
This increased price that the seller receives helps increase the net profit for the seller.
This unique concept can be found on currently and not seen on any other website. But I'm sure more will follow this concept as it benefits many online sellers and…
Thanks to Ajietpal Siingh | #Online #Auction #Website #Concept