Online auctions present an amazing platform where the buyers and sellers converge virtually. The online auction experience is fun , easy and thrilling.You can follow the bid; enquire prices, place bids all in real time. Online bidding has unparalleled advantages as it is inexpensive, straightforward and convenient. It eliminates the need for travelling numerous miles just to attend the auction. For the seller, costs such as handling and transporting their merchandise to the different auction sites are scrapped altogether. Online bidding requires just a computer with consistent internet connection and you are set to trade conveniently at the comfort of your house or in your office.
How online bidding works
To a large extent there are numerous similarities between online and traditional regional auctions. For starters, there are losers and winners in bidding auctions. Secondly, not everyone who participates in this exercise will walk home with the items they were interested in especially when it comes to rare online merchandise. It is commonplace that rare merchandise attracts numerous customers stiffening the competition, which in turn ups the bidding. In this case, as the bidding comes to a close, the highest bidder carries the day. The winners are expected to pay the actual sum quoted in their winning bid.
Signing up an online auction site
In deciding to take part in online auctions, there are some significant things you ought to understand. First, it is incumbent upon you to sign up in a particular website which you intend to use. Here you will create an account to enable you to participate in online auctions. Registering enables you collect vital information on the available buyers and sellers. This information will come in handy in tracking bids, items auctions and identification of the winners and the amounts of the winning bid.
When registering for the online auctions, it is advisable to use a new email since most of the online websites are accustomed to sending numerous emails to their members. Opening a new email account ensure that this barrage of emails don’t end up being a nuisance to your main email account.
Types of online auctions
Currently there are two main types of internet auctions namely:
- Business –to – person
This type of auction refers to a scenario where a big business or company sells items directly to the individual customers. In this type of auction products are the possessions of the action site. In the event a person earns the winning bid, he/she will deal directly with the website pertaining to the payment and receipt of the items.
- Person-to –person
Person-to-person auction refers to where an individual seller puts up their products for auction by selling them directly to the customers. The items traded are in turn controlled by the seller. When the bidding is done and winner identified, they will interact with the seller to make arrangements for payment and delivery of the items.
Winning the auction
Typically, online public auctions have time limits. The bidding process may be scheduled to take place for a given number of hours after which the auction is terminated; the website will collect data to determine the individual with the winning bid. The winner will contact the vender through and email in case of person –to –person auction while in case of business-to –person auction the website will contact them.
In cases where items are put up for auction at a reserved cost such product cannot bid on a price which is lower than this bid. In the event that at the end of the bidding, no individual is close to the reserve price, the item will be retained by the website or the seller until another auction is scheduled.
Winning an internet auction, there are a myriad of payment options available. They range from Escrow services, money order, change card, cashier’s check, debit card money shipment and personal check.
Escrow services include the uses of a variety of payment options, including checks, change card and money order. The buyer will foremost send the money to Escrow solutions who will then in turn wire the cash to the seller once the buyer receives, investigates and confirms the items.it is a very convenient option since it offers buyers confidence and security in taking part in online auction.
Change cards also give the buyer a sense of security as one can ask for the credit history and in turn pursue compensation in the event that the delivered items don’t meet the needed standards.
Banks cards are very instrumental in the business-to –person auctions. This auctioneering method usually requires that the transaction to be completed using bank cards.
Pitfalls found in online auctions.
Fraudsters raise the biggest concern in online auctions. They are cheats who are out there to make a quick buck. Also there are numerous scam websites well as sellers, who masquerade as selling quality items only to end up delivering substandard items. The only safety measure a customer can take is to ensure that they remain vigilant and very keen on the types of websites they subscribe.
Additionally, as a precaution in online auction don’t use auction sites for items you need urgently, ignore sellers with low ratings and ensure that you read carefully for the hidden caveats, conditions, warranty and return policies.