Let me start with the numbers of online user behavior.
Buy a product 71%
Participate in an online auction 26%
Sell something online 15%
Now that so many people are involved in buying and selling online, this article becomes important where I explain types of online auction concepts and online auction websites.
Here is how the different types of online auction websites or online auction concepts work or how online buying and selling works.
(i) Direct auction There are eBay online auction websites, ebid with a process, that sellers put their auction up for sale at a fixed price, buyers come and buy the item at that price. For the same auction, sometimes buyers can also bid for a higher price and the highest bidder wins when the auction ends.
On such auction websites, sellers are required to pay the fees listed below.
(i) Article posting fees (free for limited articles)
(ii) Final Value Fees (4% for any website)
(iii) Payment gateway fees (3.9% for paypal)
So an item sold for $10, the seller comes close to $3.5 because most of that money goes to fees.
So how does the seller get more net profit from the same sales they sell online in those destinations?
Now think of a buyer: a buyer bids higher to win an item, or simply buys the item at the price listed on the website.
How many times do you go to a store and negotiate saying that you want to pay a higher price for the product? Or alternatively, how many times do you purchase the product without expecting a discount on a product?
(ii) Lowest Single Bid, Highest Single Bid.
Here the buyer buys offers, uses them to bid on the products. An auction is started and the buyer has to place his price of the product. that is, offering a value for the product. Each time the member bids it costs the member. The member can place multiple prices for the products.
Depending on the logic used, i.e. single lowest bid or single highest bid, the respective member will win. That is, if you have bid a value ‘X’ that no other member has bid and if it is the lowest that someone else has bid, the product is yours at that value ‘X’
In these types of auctions, the chances of winning the product are very low. It also depends on luck to win the product.
So, to buy a product from such auction websites, you really don’t need to be a serious buyer and have a lot of money to spare on the bidding cost because you don’t control your buying decision.
And here the most important thing is that the sellers do not upload auctions, the sellers are only the web. Therefore, the profit from the cost of the offer will go to the owners of the website. so the more people bid, the higher the profit for sellers.
There are quite a few websites that you will find if you search for the lowest single bid auctions or the highest single bid auctions.
(iii) Penny Auctions. This is an auction website like swoopo etc where the auction starts with the product price as zero and increases with each bid. To participate in these auctions you have to buy the bids and use them. Each offer will increase the price of the product. Then the countdown begins, before the timer reaches zero if there is no other buyer bidding that the product is yours for that price. however that does not happen. There is always someone who surpasses you. To participate in such auctions, you must have a lot of money and time to spare. Once again, sellers are not in control of their purchase decision, but rely instead on chance or luck. Here too if you see that with each of your bids the price increases. So the question remains whether the buyer would love to make an offer to increase the price of the product.
Here the seller is the website. All products are listed for sale by the website itself. All revenue from the cost of your offer goes to the website as profit. However, there is much debate about such penny auction websites indulging in fraud by bidding on members to keep bidding. The more members bid, the more money the website makes. Such penny auction websites are not interested in selling products, but they want you to keep bidding.
You will get a list of penny auction websites if you search for the term penny auction website.
(iv) Reverse auction
This is my favorite. You’ve seen auctions that ask the buyer to bid to increase the price of the product, you’ve seen auctions that have hurt the seller’s bottom line. The reverse auction works to benefit both the buyer and the seller. In the reverse auction the price of the product falls all the time until someone buys it. The auction starts at the retail price of the product and the price of the product goes down. The current price is hidden from the buyer. The buyer pays a small amount to see how much the price of the product has dropped. The buyer then has some time to decide if he wants to buy the product at that reduced price. He may keep checking the price of the product. Here the buyer is always in control of his purchase decision and does not depend on chance or luck. If you are a serious buyer, you can always buy the product at any price below the retail price.
Here the seller lists the price of the product. Sellers also benefit from this, as the price of the product increases every time the buyer sees the current price.
As the buyer’s price decreases, the seller’s price increases.
This price increase that the seller receives helps to increase the net profit for the seller.
This unique concept is found at http://www.bestebazaar.com/contents.php?show=howitworks currently and is not seen on any other website. But I am sure there will be more to follow this concept as it benefits many online sellers and buyers.
