What is an online auction?

An online auction is an auction that takes place via the internet, allowing users to sell or bid for products and services online. Online auctions allow sellers to reach larger audiences, in different locations and geographical areas.

Where have you heard about an online auction?

One of the most popular and famous destinations for online auctions is eBay. A typical online auction on eBay often includes a Buy It Now price, which lets the buyer purchase the item for a set price before the listing's end date.

What you need to know about an online auction.

There are many different types and formats of online auctions including ascending English auctions, descending Dutch auctions, Vickrey auctions and first-price sealed-bid. Also referred to as virtual auctions, online auctions are similar to traditional auctions and usually involve multiple bidder participation. Generally, online auctions tend to last between one and 10 days with the seller being able to set the auction's time limit themselves. Other benefits of online auctions include higher reachability and a potential for large number of sellers and bidders, which encourages high-volume online business.