| Commercial world has been completely transformed | | | | |
| with the advent of Internet. Days of running to the | | | | Advantages of Online Auction Business Model |
| market and executing business transactions on head | | | | Multiple advantages accrue when a business house |
| to head contact are long over. These are the times | | | | uses the online auction model for carrying out its |
| when billions of transactions are made online between | | | | transactions. Some of the major advantages of |
| parties who have never seen each other and are | | | | electronic auction are – |
| located far apart. Such trend has naturally crept into | | | | - Absence of any time constraints since the Internet |
| the auction (leilose) methods and thus online auction | | | | functions 24/7 and any time of the day or night can be |
| (leilao online) is fast becoming the trend in the present | | | | used for business transactions. |
| day business. | | | | - Conveniences of buyers increase considerably since |
| | | | | they get sufficient time online to search, decide and |
| Online Auction (Leilao Online) Business Model | | | | also to bid. |
| Online auction (leilao online) business model is the | | | | - The method crosses all geographical barriers. People |
| process where participants would bid for the | | | | who are buying products or services can participate at |
| properties, products, or services on the Internet. Usually | | | | the farthest and remotest corner of the globe in the |
| software is used to make such electronic auction | | | | process. |
| (leilao de electronics) possible. Main task accomplished | | | | - The options and scope are much greater in online |
| by such software is regulating various aspects of the | | | | auction in comparison to traditional auction. In the virtual |
| auction transactions. | | | | environment it is possible viewing thousands of items, |
| | | | | check and compare their features and prices that |
| Online Auction Types | | | | would never be possible in traditional form of auction. |
| Very often the online auction models vary depending | | | | - Any number of bidders can participate in the |
| on the geographical and social backgrounds. | | | | electronic auction. In traditional process the number will |
| Accordingly the English auction and Dutch auction is | | | | be limited by space and other local constraints. |
| different from each other. While the starting price is | | | | - Absence of any requirement of shipping items to any |
| often low in the former, multiple identical items are put | | | | central locations. In result the costs are reduced |
| to auction at one go in the later. In Dutch online auction | | | | considerably and the minimum acceptable prices also |
| or traditional auction highest bid price for all items will be | | | | become lower consequentially. |
| the same. However use of this model for online | | | | - Other advantages of using the online auction |
| auction (leilao online) is more an exception than | | | | procedure are enhancement of intensities of social |
| regularity. It is the English auction model that is widely | | | | reactions, increase in number of bidders for products |
| used for all types of electronic auction (leilao de | | | | and services, and deriving network economy. |
| electronics). | | | | |