Auction - what is it? Electronic, Internet auction

2024 Author: Howard Calhoun | [email protected]. Last modified: 2023-12-17 10:16

Each of us must have heard such a thing as "auction". Therefore, we know that an auction is a form of bidding, a public sale of goods, which is carried out in order to obtain the highest price for a lot through bidding. Until recently, using this word, we imagined the trade in art objects, such as paintings or some kind of sculptures. Recently, however, the concept of this form of sale and purchase of goods has changed somewhat. Now we have such a thing as an online auction. It is on it that everyone can sell their things. And it is not necessary to paint a picture for millions for this!

How do auctions work?

The very principle of auctions is most likely familiar to many of us, and there is nothing unusual in this: a lot is put up for sale, for which the participants begin to “fight”. The winner is the one who makes the largest bid, as a result of which the goods fall into the hands of the buyer, one might say, at the highest price. Many auctions are also limited in time - this is done in order to limit the possibility of rising prices indefinitely. Also, the fact that the time for which you can bid is limited, plays to the benefit of participants who want to get the goods cheaper, raising the price in the shortest possible time toend of bidding.

Because an auction is a form of public sale, it means that for it to take place it is necessary to ensure the presence of a large public - people who will bid. This, in turn, causes some technical difficulties. For example, you have to hold thematic auctions for people who will be interested in one or another category for goods. The disadvantage of real auctions for the same reason is the inability to sell one product (for example, a tractor) at any time. The owner has to wait for a special agricultural auction to be organized. This, in principle, applies to any product.

Electronic auction as an opportunity to sell any item

This problem is solved by today's popular "virtual" auctions, which are held on the Internet. Such services are the largest portals with a large number of categories, in each of which any product can be placed without having to wait for any deadlines.

The advantage of such a platform as an Internet site is also the fact that it is visited by a huge number of users around the clock, each of which can become a potential buyer of a tractor (if we talk about our example) or any other product. A developed market for contactless payments, as well as companies providing services for the transportation of goods, facilitate a simple exchange in the form of money-goods between participants in online auctions.

The largest auctions in the world

Speaking ofthe number of users and goods sold, the largest, without a doubt, can be called the eBay electronic auction. It was introduced in the USA, but now millions of products are sold on this platform around the world. As a result, many users from a number of countries are constantly on the lookout here, trying to purchase the desired lot as cheaply as possible.

In addition to eBay, you can also name the AllegroGroup marketplaces, which include the largest portals in Eastern Europe (whether it is an auction or not is a question, since goods are also sold here at a fixed price).

How to start trading?

If you want to start trading, you need to understand that a real auction is an event that requires registration in advance, with the provision of documents and, possibly, minimal guarantee fees. If we talk about online auctions, then it takes much less to participate in them - you just need to register. For merchants, in the case of electronic trading, they are also sometimes required to confirm their real address and, of course, passport data - in order to eliminate the risk of fraud.

Then, you need to provide a description of the item you would like to sell, along with high-quality photos. Writing in such a way that the buyer wants to bet on your product is also a whole art. However, this is already a topic for writing a completely different article.

Opportunities for income from overseas auctions

Everyone whounderstands that the auction is a trading platform with its own turnover of lots and money paid for them, knows about the opportunity to receive income. The chances of making money on trading also increase because many foreign auctions are now available to us, where you can buy and sell things (if not directly, then at least with the help of intermediaries).

There are many examples of successful earnings. For example, these are auctions in Japan, which traditionally sell a large number of cars made by them. Since in the country itself the price of cars is constantly falling due to the release of new models, it is quite profitable to buy them and bring them to our country. In addition, everyone understands how high-quality products the Japanese auto industry has been offering for many years.

Auctions as a business

Besides being a one-time earning opportunity, for some of the most advanced users, the auction is a business that generates regular high income. There are many schemes by which you can earn money with the help of auctions. Someone is betting on the local market, offering goods of their own production at auction, others are buying products in bulk, in order to sell them later using online platforms with a fat.

A more global approach is to work with foreign auctions. For example, some rare items, such as old coins or some household items from the USSR, can be resold on the same eBay at a premium. With us, these things, in fact, do not cost anything.

There is also a reverse scheme, according toin which goods are purchased in Europe, the United States or Canada through an auction, directly or through intermediaries, and then sold here on local bulletin boards.

And, believe me, these are not all the opportunities for making money on online auctions. Where there is a turnover of hundreds of thousands of lots, everyone can find their own niche for making money. The main thing is to want and start searching. And you will definitely find your niche: product, category or seller with whom it is profitable to cooperate.