As in every sector and industry, auctions too are taking the online route. An online auction platform is an enormous medium to offer buyers and sellers a wide range of goods. What is advantageous is that it is a meeting place for potential customers regardless of geographical boundaries and not restricted to a specific location. There is a flow of merchandise from around the world, giving sellers a virtual store without setting up the necessary infrastructure. From retailers auctioning excess inventory to items being put up for charity fundraising efforts, the breadth and scope of an online auction platform are unmatched.
How does an online auction platform function?
Auctions conducted over the Internet are like huge flea markets where sellers offer their products in single or multiple lots. As in traditional auctions, there are sellers and bidders and winners and losers. Winners have to pay the cost of the items bought and have them delivered to a given address. However, the key difference is the data collection by an online auction platform. Bidders have to provide their name, location, and other information usual to online shopping sites. In physical auctions, this is not necessary and buyers have the choice to bid anonymously and walk away with items after payment.
People have to register on an online auction platform before they can take part in the bidding. This is necessary for both buyers and sellers to track the items, keep up with the bids, know the winning bids and build a database for buyer-seller feedback.
After a scheduled time, the bids are closed and the buyer and seller communicate via email to arrange for payment and delivery of the goods.