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Four Different Types of Online Auctions

Isn’t online shopping a blast! You can go online now and find virtually anything you would like. The internet has made products and services readily available to virtually the entire world. It is an amazing tool which can be used in many ways. Online auctions have also made buying and selling a cinch. In this article I would like to discuss four types of auctions which can be used if you plan to sell your items online. After all, one man’s junk is another man’s treasure.

The first online auction type is a straight auction. This is probably the most commonly used. Using this type of an auction you are able to set a minimum price and let bidders have at it. Once the auction is over, the highest bidder will be deemed the winner of the auction. Simply meaning, you will need to ship your item to this person because they won the pricing war when time ran out.

A second type of auction is called a reserve auction. Reserve auctions are great, however will cost you a little more than a straight auction. Reserve auctions allow a seller to place a price on the product which they will not sell below. During the auction, this price is not shown to bidders, it will simply state that the reserve has been met, or it hasn’t. This type of an auction is perfect for items which have a high price tag to the seller who doesn’t want to lose money during the auction. Bidding can start below the reserve when the seller begins the auction, but the item will not sell if the bid prices are below the reserve when the auction ends.

The Dutch auction is the third type of auction. In this auction a seller is given the opportunity of selling multiple items at once. This doesn’t mean you can sell a baseball glove, tennis shoes, and a Super Nintendo at once, but rather multiple items of the same good, such as 100 laser pens at once. Then bidders can come in and specify how many of the item they would like to purchase and how much they will pay for each.

Private auctions are probably the least used. In a private auction a seller is given the opportunity to withhold their identity. There must be special cases where this would be required, but I wouldn’t think this is the best way to go about selling an item because of the feedback options available at an auction site. Sellers and buyers alike receive feedback from other users who have used their business in the past and leave remarks about the experience, whether it was a good or a horrible experience to assist others who may buy from them in the future. The identity of the private auction is revealed after the auction closes, then information is exchanged in order to transfer the goods purchased.

There are many different auction sites which are available to use. Each has unique features which may be suitable for your needs if you are planning on buying or selling. Auctions are an excellent way to do business and if they are used correctly you can find items to purchase at unbelievable prices. Overstock Auctions may have the features which you require. Good luck and happy auctioning!

About the Author:

Mike Allen is an Internet Marketing Consultant for 10x Marketing