Auctions have been around for thousands of years. Traditionally, a person offers an item for sale and potential buyers bid on the item.
The bidder willing to pay the highest price for the item wins the bid and takes the item home – the same with online auctions.
The main difference between traditional auctions and web-based auctions is that the actual bidding and selling takes place over the Internet with interested buyers submitting bids electronically.
The person with the highest bid at the timed close of the auction wins the bids and arranges to receive the item.
The auction site acts as the middleman in the buying and selling transaction process.
There are numbers of ways you can use the auction model. First, you could build an auction website and let that be you business model.
Or you could add an auction component to another e-commerce model.
Many auction sites are built or sponsored by major vendors who have an established website, and use their auction site either to attract customers, or to offer merchandise that is surplus, outdated and/or seconds.
Many readers, however, will find established online auctions such as those offered by eBay, Amazon auctions and Yahoo auctions a way to build a credible e-commerce business.
Using an established auction website to build a wed-based business is inexpensive and allows you begin making a profit immediately.
There are none of the expenses of the typical e-commerce model – no advertising costs, no host costs, etc. Auction sites receive billion of visits daily
If you used one of the online auction sites as a means to enter the world of of e-commerce, understand that you are responsible for listing your items on the auction site, and you assume responsibility for all aspect you auction listings, including product descriptions, identification of quantities, establishment of starting and maximum bid prices and shipping.
Once the auction closes, it is up to you and the buyer to make arrangements for payment and shipping.
Auction Site
