| Online auctions have become a popular way for many | | | | items any time of the day as well. And since items are |
| people to make money. The online auction business | | | | listed for usually one to 10 days, potential bidders have |
| model includes one party that sells products and | | | | a lot of time to ponder their bid. |
| services, while another party bids to purchase them. | | | | Many bidders: Since online auctions allow for the |
| There a number of advantages of this online auction | | | | potential to find a wide variety of items at |
| business model. A few of them are listed below. | | | | lower-than-retail prices, it draws many consumers to |
| No geographical limitations: This is a strength of the | | | | try their hand at getting a bargain through an online |
| online auction business model that is inherent by the | | | | auction. The ease of the bidding process also attracts |
| fact that it is "online." The Internet allows sellers and | | | | consumers, who can bid from their computers in the |
| bidders to participate in online auctions from anywhere | | | | comfort of their own home. |
| in the world. A seller in Japan can put up a doll on an | | | | Many sellers: On the other hand, the potential to sell |
| online auction site that can be bid on by bidders that | | | | items at higher-than-retail prices also draws many |
| reside in the U.S. The "cost" of participating in an | | | | sellers. Selling their items through online auctions also |
| auction is essentially zero. This advantage also | | | | reduces their selling costs, and is also very simple and |
| increases the number of products and services that | | | | easy to do. |
| can be listed, leading to an increased number of sellers | | | | Joy of winning: Part of the fun pertaining to the entire |
| and bidders. | | | | bidding process is seeing whether or not you will "win" |
| No time constraints: Items can be posted on auction | | | | the auction and get the desired item. |
| sites at any time of the day, and bids can be made on | | | | |