Online marketing and e commerce are two new divisions being set up by every organization in a big to get into the bandwagon of Internet based selling. B to B and B to C models have developed significantly over the last few years and are fast replacing traditional modes of business transactions. Online-auction too is one of the important channels that the e commerce has spawned.
You may have been into traditional auction and buying things in the past. Now if you were planning to enter into online e auctions, you would need to understand how this works. Online-auctions are different from traditional auctions. Unless you know these differences you would not be able to decide what is suitable for you.
In an online-auction, one is not able to see or view the merchandise unlike in the traditional auction. If you are purchasing high priced collectibles then this fact does make a difference.
It is quite difficult for anyone to communicate with the sellers in an online auction. Few sites do offer online chat, but still it is inconvenient.
Online auctions do have their benefits. Primary advantage being that the seller does not have to secure or rent a premise to hold the auction and invite buyers to attend.
In case of online-auction the seller stands to save on a lot of expenses besides paying for the hall or the venue. He does not have to pay for looking after the people who attend the auction and can save expenses towards lunch etc.
Online auction is an advantage to the seller in the sense that he need not restrict the participation to any particular location and can invite prospective buyers from anywhere in the world. This gives him access to a wider market.
People who know online auction procedures and technicalities thoroughly are in a position to decide and participate in either of the auctions depending upon case to case.