Traditional auctioneering methods happened in public forums calling on people who were interested in buying the particular item for sale. The seller will have a particular amount in mind and when this is met in the auction, he sells the item to that particular bidder. Now, auction is taking up new forms with the use of increased technology. The birth of online auction is thus, a sudden process.

Online auctions happen on the internet. Participants in the auction process will bid for the products or services over the internet. This gives out a two fold advantage, advantage for the seller and also for the buyer. Online auctions open up a favorable condition for the buyer and it gives an opportunity to search for his needs and select the best. For the seller, it gives a chance to open up sales channels and display his new products.

Online auction has become a big business today. Now millions of people around the world are making money and buying products through internet auction methods.

How online auctions function

•Registering

This is the first step in participating in online auction. This simple process requires people who are above 18 to participate in the auction. While registering you may have to agree with the terms and conditions of the online auction methods, be it service or product. You can also change your preferences in most auction site. Once you are a member of the auction site, you are eligible to participate in the auction process. You can also terminate your agreement when it is desirable and also with respect to the signed agreement.

Most of the sites will ensure privacy in all their dealings and your information will be kept secret.

•Auction fee

Some of the auction sites are free. But there are also others who charge you. Know about this beforehand and also whether they have any hidden rates or prices. The fees will be usually less in many sites.

•Know the rules

You need to know about the rules prior to participating in auction. If you are not aware of the rules and regulations, you might be put in difficulties. So, it is always better you know the rules and then go with participating in the auction process.

The advantages of the online auction methods are many.

1.Feasibility

Internet is an easy medium. Rather than going to the place and attending the auction methods, it is always better you sit at home and do the bargain. There are no extra costs involved and no wastage of time too.

2.Better prices

If you are a seller, you get better prices through auction. You will get to know about other people, understand their interests and also compare the market prices with the internet rates. You will definitely get better prices in auction.

3.Quick sales

Sales happen fast as everybody interacts over the internet and the selling or buying happens so fast and easy. There will be no dragging of time at all as in forums because people from different streams can easily interact through the internet.

4.List more products

Internet enables to list more products. You can also search for the different characteristics of different products and assess whether it suits you or not. Unlimited choices are one of the merits of online auctioneering.

Buyers should take things seriously when the auction happens. It is better not to start with a higher price always and gradually make it high. Do not drag time when it is time for you to pay. Paying at the right time shows your professionalism. Sellers also should take up things seriously and answer all the questions correctly and truthfully. Do not include lengthy descriptions; rather make it concise and crisp.

Despite the advantages of online auction, there are also some demerits attached to it in the form of frauds. You should have a keen sense of determining the fraud and do not fall in to a trap because of carelessness.



Misrepresenting

This often happens in fraud online auctions. Merchandise will misrepresent them and try to trap people. Things will be overstated like the amount, and they play hidden tricks.

Failure to pay

Once the auction is over, some people will not pay and it will be later on noticed that they are frauds. You might also lose money if they had charged fees in the name of registration. There are also people who make you pay first and do not ship products. These things should be taken care of before you engage in the auction process.

Internet fencing

This is the process of selling goods that are stolen through auction. You never know they are stolen until you are caught.

Credit card fraud

This has become a common theft in the internet world. Credit card theft is also used in auction by some frauds and they act very honest and diligent. Here stolen credit cards are used to ship products and you pay for the same. Only when you are caught by the police will you be able to know about the trap.

Internet auction is thriving up in the market. Like any other auction methods, internet auction has its own protocol. It is necessary that both the seller and the buyer should follow these etiquettes to keep up the auction industry grow up and make it reliable.