With the Internet age, no business can survive for long unless they jump into the bandwagon of e-commerce and online marketing and selling. In most of the organizations today, procurement as well as sales functions have been internet enabled and are driven using web-enabled software applications and CRM applications.
Online-auction has gained ground significantly in the last few years with companies like Dell etc having taken to this mode of transaction.
People who have been into the traditional auction model cannot make the transition to the online-auction model overnight without knowing how online auctions work.
Even if you are buying high priced collectibles, you will not be able to view the merchandise in an online auction, unlike the traditional auction where you would have such access.
Online-auctions do not facilitate easy communication between sellers and buyers. Even though few sites do offer instant chat and online messaging services, people still find it difficult to communicate.
Online-auction does not warrant that the seller should have an authentic premise or venue for holding the auction where people can attend. This is one of the major advantages of online auctions.
The online auction does not require buyers to be physically present at the auction site. Hence the seller not only saves on the rent for the premise but also on other expenses including providing refreshments, lunch, etc.
Internet and web auctions do not recognize any geographical boundaries. Therefore the seller can auction his items to a worldwide audience and the buyer can be located anywhere. The reach, therefore, can be wider.