Which Is the Best Online Auction Website Concept?

Let me start with the figures of the behavior of on-liners.

Buy a product 71%
Participate in an online auction 26%
Sell something online 15%

Now when so many people are participating in online buying and selling, this article becomes important where I explain the types of online auction concepts and online auction websites.

Below are how different types of online auction websites or online auction concepts work or online buying and selling work.

(i) Straight auction There are Online auction websites eBay, ebid with a process, that sellers upload their auction for sale at a fixed price, buyers come and buy the item at that price. For the same auction, sometimes the buyers may also bid for a higher price and the highest bidder wins when the auction ends.

In such auction websites the sellers has to pay fees as below

(i) Item posting fees (free for limited items)

(ii) Final value fees (4% for any website)

(iii) Payment gateway fees (3.9% for paypal)

So an Item sold for $10, seller gets near to $3.5 because most of that money goes to charges.

So how does the seller earn more net profit from the same sales selling online in such destinations.

Now think of a buyer – a buyer bids higher to win an item or simply buys the item at the price stated on the website.

How many times do you go to a store and negotiate saying you want to pay a higher price for the product.? OR alternately how many times do you buy the product without expecting a discount on a product?

(ii) Lowest unique bid, Highest unique bid.

Here buyer buys bids, uses them to bid on the products. An auction is started and the buyer has to place his price of the product. i.e bid a value for the product. Each time the member bids it costs the member. The member may place multiple prices for the products.

Depending on the logic used i.e. unique lowest bid or unique highest bid, the respective member will win. Meaning if you have bid a value ‘X’ which no other member has bid and if its the lowest any one has bid the product is yours at that ‘X’ value

In such types of auction the chances of wining the product are very low. Also you are dependent on chance for wining the product.

so to buy a product from such auction websites you really need not to be a serious buyer and have lot of money to spare in bid cost because you do not control your buying decision.

And here the most important is that sellers do not upload auctions, the sellers are the website only. So the profit from the bid cost is all going to the website owners. so more the people are biding more is the profit to the sellers.

There are quite a few websites you will find if you search lowest unique bid auctions or highest unique bid auctions.

(iii) Penny Auctions. This is an auction websites like swoopo, etc are where the auction starts with the price of the product as zero and increases with every bid. To participate in this auctions you have to buy the bids and use them. Each bid will increase the price of the product. Then the count down starts, before the timer comes to zero if there is no other buyer biding the product is yours for that price. however that does not happen. There is always some one who outbids you. To participate in such auctions you have to have lot of money and time to spare. Here again the sellers are not in control their buying decision but depend on chance or luck. Here too if you see with each of his bid the price increases. So the question still remains would the buyer love to bid for increasing the price of the product.

Here the seller is the website. All products are listed for sale by the website itself. All proceeds from your bid cost goes to the website as profit. However there is much debate on such penny auction websites that they indulge into fraud by out biding the members just keep them biding. More the members bid more the website earns money. Such penny auction websites are not interested in selling products but they want you to keep biding.

You will get a list of penny auction website if you search the term penny auction website.

(iv) Reverse Auction

This is my favorite. You have seen auctions that ask the buyer to bid for increasing the price of the product, you have seen auctions that have hurt net profit of the seller. Reverse auction works to benefit both buyer and seller. In reverse auction the price of the product falls all the time until someone buys it. The auction starts with the retail price of the product and the price of the product falls. The current price is hidden from the buyer. The buyer pays a small amount to view how much the price of the product has fallen to. The buyer then has a certain time to decide if he wants to buy the product at that reduced price. He may keep checking back at the product’s price. Here the buyer is always ion control of his buying decision and does not depend on any chance or luck. if he is a serious buyer he can always buy the product at any price lower than the retail price.

Here the seller lists the price of the product. The sellers also benefits from this in a way that his price of the product increases each time the buyer view the current price.

While the buyer’s price reduces the seller’s price increases.

This increased price which the seller receives helps to increase the net profit for the seller.

This unique concept is found on http://www.bestebazaar.com/contents.php?show=howitworks currently and not seen on any other website. But I am sure there will be more to follow this concept as it benefits the many online sellers and buyers.

How to Find Live Bid Online Auctions That Specialize in Your Area of Interest

If you’ve never heard of a live bid online auction, then you need to take a moment to read this introductory paragraph. Otherwise, feel free to skip ahead to the good stuff where we’ll tell you all about how to make such auctions work for you and for your personal interests. Now, if you’re still with us, we’ll assume you’ve never heard of a live online auction. Fair enough.

Similar to a traditional auction, live auctions held online are designed to sell off various objects that someone else no longer wants but hope you do want. They also work in exactly the same way that a traditional auction works by using an auctioneer who calls the bids as they come in and are held in “real time,” meaning that you get to bid in such auctions as they are happening, not like eBay auctions where you bid any time. Okay, now that we have that introduction out of the way, here’s the good stuff.

Making Online Auctions Work for You

We’ll assume here that you know all about going to a live bid online auction and that you simply want to know how to make them work for your needs. If you have no idea what we’re talking about, see the paragraph above. Live online auctions aren’t just a more convenient way to do your auction purchasing. Yes, you can get great deals at such auctions the same as you can at traditional auctions and you don’t have the fuss of getting in the car and driving to an auction house.

However, the best thing about an online auction is that you can easily purchase from auction houses that are thousands of miles away since everything is done online. This is a boon for collectors who have specific items they look for. The trouble is, with all the online auctions out there, how do you find the ones that specialize in the antique fish lures that you love collecting? Simple – just use Google Alerts and RSS.

What is Google Alerts and What is RSS?

These are two separate technologies that actually work together to make things easier than ever for those who enjoy bidding at a live bid online auction. RSS stands for Really Simple Syndication and is a fairly old technology (in Internet terms that is – it was created for Netscape Navigator and the My Netscape web portal back in 1999 – an eternity in Internet years) that allows you to grab content from different web sites and to see it all in your e-mail or in an RSS reader. The system is most often used for collecting articles from news websites and blogs.

Google Alerts is another system that will tell you when a new webpage is added to the Google index which contains specific keywords. Therefore, you could, for example, have it do an alert every time a page is added which mentions “antique fish lures.” However, that will simply bring you a ton of pages and doesn’t really differentiate between what is out there and what you’re looking for.

Using Google Alerts

What if you only want to find any live bid online auction that happens to feature antique fish lures? You have two choices: Either you can put both of those into your search by putting them in quotation marks (i.e. “live bid online auction ” ” antique fish lures”) or, if you know of specific online auction sites that sometimes have them, you can tell Google Alerts to let you know only when those sites add in something of interest using the “site:” command (i.e. site:myfavoriteauction.com “antique fish lures”). Try that with a traditional auction and you’ll just get blank stares! Oh, and the best part? Google Alerts will even send you an RSS feed when it finds the auctions you’re interested in.

Online Auction Sites – Basic Tips For Sellers

Over the last several years, rising numbers of people have bought and sold goods at online auction sites such as eBay. Naturally, many folks who joined internet auctions soon realized the income potential available to those who could sell successfully. These have included stay-at-home parents looking for some extra income and entrepreneurs at heart who wanted to start their own full time business. Online auction sites are attractive to new entrepreneurs because they’re a target rich environment: people cruising internet auction sites tend to be people wanting to buy something as opposed to people just looking for information.

In order to start a business selling through internet auctions, you first have to decide what market to target and figure out how to obtain a solid product you can sell for profit at a reasonable retail price. Next, you have to figure out how to sell it. Here, I address the last issue, which is the easiest: how to sell online using auction sites. If you follow these two basic tips then you should succeed in launching your business, provided that you have a suitable product to offer that you know has some consumer demand. The two are:

1. Provide accurate and attractive product descriptions
2. Understand the policies of your auction site and payment provider, e.g., PayPal

Everyone knows by now that a photo is a must-have. The text descriptions are equally important, but sellers sometimes skimp on this part. There is no point in endlessly fretting about “What should I sell online?” only to later cut corners when you prepare the auction listings. A detailed description is particularly important if the product is sold with multiple accessories, such as a camera with different lenses. Also, if you are aware that the product is used with another item that is not part of your online auction, it is best to state explicitly that the other item is not included in the auction.

These can be illustrated with iPod auction listings. You probably know already that iPods are supplied with variable amounts of memory. Your description of the memory capacity for the specific item you are selling must be accurate, because if an item advertised a 32 Gb iPod turns out to actually be an 8 Gb model you can bet the buyer will lay a claim against you to get his money refunded. This is also why it can be hazardous to copy auction listings from another seller for a product if you don’t really know anything about it: yours might not be configured the same way his was. Negative feedback can be very damaging when you are in the startup phase for an online business. Suppose you are selling a used iPod without any headphones. Your picture just shows an iPod and no headphones are visible, since you aren’t auctioning a headset or earbuds with it. An iPod needs a headset of some sort, though, and any new iPod purchased in a store would include earbuds. Assuming that the buyer understands a headset is not part of the auction based strictly on your photo is risky. I advise an explicit, written statement that headphones are not included. An ounce of prevention is worth a pound of cure to make money online.

Policies of online auction sites and their payment providers can change over time and you need to be aware of what their pricing or other policies are before jumping into selling in online auctions. As an example, occasional Paypal holds on payments have recently caused confusion for some new eBay sellers. Sellers have at times reported holds of up to 21 days on payments from PayPal. Of course, a seller is still required to ship items to buyers after Paypal has received cleared payment. This means a seller may be compelled to ship items before receiving payment, even funds to cover the shipping charges. Some folks have listed items for sale without recognizing this possibility and have then gotten frustrated when confronted with an unexpected delay getting paid. Online auctions generally do not require sellers to accept PayPal, but it really is the easiest service to use when starting a business with online auction sites. If you want to avoid PayPal, internet merchant accounts can always be used instead. Other options may also be available depending on the terms of your auction site-just beware of checks from buyers claiming to be from Nigeria!

Another area of frustration for sellers is not unique to online auction sites: returns! Some folks don’t want to cope with returns, so they’ll list an item with a return policy of “no returns accepted”. Others offer a return policy such as “returns accepted within 7 days, buyer is responsible for return shipping plus a restocking fee.” Requiring the buyer to pay return shipping and/or charging a restocking fee is standard. No matter what you write as a return policy, however, you can be forced to accept returns if the buyer alleges you provided an item that was Significantly Not As Described (SNAD). PayPal allows SNAD complaints to be leveled up to 45 days after the sale, so even if your listing said that returns would not be accepted after 7 days you are still bound by the PayPal SNAD policy if you accept payment through PayPal.

The terms of service for online auction sites and payment providers are not unduly complicated, but make sure you read the fine print before you try to start selling. Participating in auctions first as a buyer is usually a good idea. This also helps you to establish a good reputation within the online auction sites. If you have obtained a quality product to sell that consumers want to buy, you are able to create attractive and clear auction listings, and you understand how your auction site works, then you have all the makings of a successful internet auction based business. Good luck and have fun when you buy and sell online!