| Characteristics of a Good Online Auction Siteo Site | | | | auction sites do not stop businesses to carry on sales |
| must have prominent privacy policy that guarantees | | | | of product through traditional sales method.o An online |
| that the site will provide secure link when a customer | | | | auction site also reduces the distribution cost of a |
| enter credit card details and do not sell customer | | | | product. It can be stored at one place till it is ready for |
| information.o Very clear defined policies and | | | | shipping. It will also reduce the packaging cost of items |
| procedures must be enacted upon when and if any | | | | for distribution to intermediaries such as retail stores. It |
| wrong transaction occurs.o Rating of buyers and | | | | will also protect goods from damages and keep them |
| sellers facilitate the identification of sellers who do not | | | | safe.o Online auction also helps small businesses to sell |
| exist to the end of bargain.o Fees and commissions | | | | their seasonal, discontinued or damaged goods often |
| must be mentioned on the site. Most of the sites do | | | | with profits and eliminate the inventory expense to |
| not charge any fees from bidders but sellers often | | | | store them.o Online auction sites open the door of |
| have to pay small fees for listing the items and | | | | international markets for small businesses and help to |
| commission on selling any item. So the bidders must | | | | expand global market. That is nearly impossible to |
| compare online auction sites for the fees and | | | | achieve via normal marketing channels.o Online auction |
| commission rates to get an idea of the current rates.o | | | | sites also help new businesses that offer new |
| A good online auction site must have escrow services | | | | products and it becomes easy to set a market price |
| option such as PayPal. These services make the | | | | based on supply and demand.o These sites also help |
| selling and buying more quick by preventing buyers and | | | | to find out what customers are willing to pay without |
| sellers from becoming intermediary. The buyer can | | | | doing time-consuming expensive market research. |
| directly send the small fees and payment to the | | | | Disadvantages of Online Auctions |
| escrew service, after receiving funds escrew gives | | | | Online auctions do not provide buyers with an option of |
| instruction to sellers to ship the goods. When buyer | | | | personally viewing and evaluating items before |
| receives the goods in acceptable condition, funds are | | | | purchasing. This may lead to the possibility of fraud. |
| transferred to seller via escrew service.o A good | | | | Another major drawback is that it is also not possible |
| online auction site must have the international payment | | | | for every business to take part in online auction. |
| and shipping option. Commercial sites support | | | | Companies have to host their own auction websites |
| international sales. | | | | and for this purpose they have to hire trained technical |
| Advantages of Online Auction Sites | | | | staff. |
| Online auction sites offer several advantages:o Online | | | | |