Market Overview

Different Types of Online Auction and its Process

Different Types of Online Auction and its Process

If you are not aware with online auction and their types, this article is for you. The auction is similar to bidding, it is the process of selling a product or item through bidding, in the auction you have to bid on the products (whatever you want), and bid should be higher among all buyers to grab the product or item. Best online auction site have two types classic auction and reverse auction. Classic auction is the ordinary auction, in which who will bid the highest that can grab the deal. It contains two types of deal first one is ‘single unit’ and the second one is ‘multiple unit’. Single unit has one product and multiple units have multiple products.

I would like to take the example to elaborate the single unit classic auction. Suppose there are buyer (john, liza, bravo) who bid for the iPod now the bid start john bid $10, liza bid $12, bravo bid the $13, liza bids $15.5 then john bid $18 to overcome the john, bravo bid $19.36 let see who will be the winner bidding is still going on, john bid the $22.56 now liza bid the $24.13. It’s the final bid so the winner is liza. Now you can see that here each bid is highest from the last bid and all bidders can see the biddings that are why it’s known as open bidding. In multiple units same process will follow, it’s just a minor change only product quantity will be more than one and bidders can bid on the single unit and multiple units too.

Reverse auction, in which lowest cost that the supplier will agree. A public auction is not required to have a source cost, and hypothetically, any public auction can have a source cost. If the visitors know the source cost, it is a published source price; otherwise it is a key source cost. In simple words, a buyer tells about his requirement to the sellers and the entire seller bid as less as possible respect of buyer requirement.

Now the conclusion of best online classic auction and best reverse auction site, it is an open, climbing down public auction. The public auction starts at a very high cost and at specific time durations falls the cost by a set amount. The process carries on until a prospective buyer indicates a buy indication, after which that prospective buyer victories the lot. When a prospective buyer gives a buy indication, they can take some or all of the lot at the current cost. If not all units are taken, the public auction carries on losing the cost on the unpurchased portion of the lot. The public auction is described as climbing down because the offers reduce eventually. 

The preceding article is from one of our external contributors. It does not represent the opinion of Benzinga and has not been edited.


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