Online Auctions: How They Work

You may have seen auctions on TV or in the movies. A quiet room with a fast-talking person at the front, auctioning off items to the highest bidder. Typically, participants bid by slightly raising their hand or a numbered auction paddle, signifying that they’re interested in buying a certain item. The winner of course is decided by the tap of a gavel and then the entire process begins again. Online auctions, on the other hand, have a different feel to them. For one, you’re not gathered in a room with a bunch of other interested buyers, you’re instead bidding from the comfort of home. And you’re not limited to just an afternoon of bidding, online auctions allot for a much longer time period for a sale. When it comes to online auctions, how they work is entirely different than a traditional auction, and there are many differences but also similarities, whether you’re buying or selling.

The Online Auction Process

Reputable online auctions will be run by a licensed auctioneer who will oversee the auction in its entirety from start to finish. This ensures that the integrity of the company remains intact and that all those who participate will have the best experience possible. Those interested in bidding in an online sale will need to register in order to start placing bids. Registration information generally consists of your name and address, billing information and other contact details. Once an online auction opens, there will be a set amount of time to bid, which can vary from a few days to a month or more, and is much longer than in-person auctions. Auction participants will have a chance to learn more about each item in the sale, in detail, so that they’re able to make an informed decision when it comes to bidding. A description with as much information about the item as possible will be included, as well as photographs of the item, so that you’re able to see the merchandise you’re interested in from multiple angles.

Many bid sites will allow you to set various parameters, including maximum bid, alerts and more, so that you’re able to stay on top of the item you’re looking to buy. At the end of the sale, if you’re a winning bidder and it is a local sale, you will then choose your pick-up day, so that you’re able to simply stop by the location and claim your item. If the auction company offers shipping, they will work with you to make sure your items are shipped directly to you, typically paid for by the buyer. All payment details will be handled through the bidding site.

Benefits of an Online Auction

There are numerous benefits that go along with shopping from an online sale, as well as selling your items through one. These include:

·         Longer period of time to bid

·         Potential to sell items for more money due to a larger audience

·         More convenience

·         Bidding any time during the sale/not limited to certain hours

·         More awareness of exactly what you’re getting and its quality

When you choose to either shop from an online auction or sell in one, you’re experiencing the auction format much like you would at a live, in-person auction, but from anywhere in the world, not just the physical auction site. This is one reason why online sales are increasing in popularity, especially since we tend to spend more time at home these days. Now that you know how an online auction works, you’ll be able to navigate them with more success.