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Many Options for Sellers. Businesses and Consumers· Fixed Price Item: A Fixed Price Auction is really not an auction at all, but rather an item for sale. The fixed price auction differs in that the first bidder to place a bid will win the item and the auction closes immediately. This is perfect for local businesses to sell anything. They determine the price and sell at their price. · Standard Auction: A Standard Auction is one in which bidding raises the price incrementally. Standard auctions can have a Reserve Price, and use Proxy Bidding. The winner of a Standard Auction is the person with the highest bid at the end of the auction. The auction is considered successful if the Reserve Price has been met. If the Reserve Price was not met, the auction is considered unsuccessful and the item owner is under no obligation to sell the item. · Blind Auction: A Blind Auction may also be known as a Silent auction. This works very similar to a Standard auction where the highest bidder wins the auction. However, in a Blind auction, the bidding process is not interactive and the bidders will only receive information on their bid ranking when the auction closes. A Blind auction also differs from a Standard auction in that it does not offer a Reserve price and does not utilize any Proxy bidding. · Multiple Quantity: A Multiple Item, also known as a Dutch auction, is where the auctioneer has two or more items that are exactly the same and is willing to break them up to sell to individual bidders. If the auctioneer wants to sell multiple items as a single lot to a single bidder, he/she should use a Standard auction. In a Multiple Item auction, there is also a difference as to how winning bids are determined and broken down. There can be multiple winning bidders in a Multiple Item auction. The winning bidders are determined by who has bid the highest, earliest and for what quantity of items. However, all winning bidders will pay the same winning bid amount, which is determined by the lowest successfully winning bid. Multiple Item auctions can not have a Reserve price in effect and does not permit Proxy bidding. For Example, a Multiple Item auction has been placed with 10 items for sale. The opening price for the items is $1.00 each. After the auction opens, 20 people place equal bids for the items at $1.00 each. If the auction were to close at this point, only the first 10 people to bid would be declared winning bidders. Earlier bids take precedence over later bids of an equal amount (and in this case, quantity). However, before the auction closes, a new bidder places a bid of $3.00 for one of the items. Because this person has placed the highest bid, if the auction were to close now, he or she will win one of the 10 auction items. The remaining 9 items are won by the first 9 bidders who bid at $1.00. However, because all bids will be accepted at the lowest winning bid, the person who bid $3.00 will only be required to pay $1.00 for the item. By bidding over opening price, new bidders can essentially knock the earlier low bidders out of the running which helps guarantee then a higher placing. · Turbo Auction: A Turbo Auction is just like a Standard Auction with a few limitations. The Turbo Auction is meant to encourage bidding activity by interested bidders, since it is forced to a low starting bid ($1), and does not allow a Reserve price. · Reverse Auction: A reverse auction, also known as an upside down auction is an auction where people can list what they want and need and have other people submit offers to them. When someone posts a reverse auction, he/she is not intending to sell something, but rather to buy something. That something can be a product or a service. As a reverse auction progresses, the price drops. · RFQ (Request for Quote): An RFQ Auction is designed for publishing a "Request For Quotations". A Request For Quotation would typically be issued by an individual or organization looking for a product or service that they will describe in the RFQ's detail information. Then any people or organizations interested in providing the product or service to the auctioneer, can submit their bid for the products or services outlined in the RFQ. Their bid may typically include additional descriptions or features of their products and services in regards to the RFQ, as well as any other limiting terms of their bid submission. 1. Reputation of Bidder 2. Additional Details of Products/Services Offered 3. Limitations of Competing Bids Offered · Barter Auction: A Barter Auction is an auction where the auctioneer is willing to accept barter offers from bidders. A barter offer can consist of anything the bidder can describe. This could be an offering of some other item in exchange for the auction item. Or it could be an item plus some additional cash offering in exchange for the auction item. The auctioneer is able to choose whichever offer he wants to accept. · Linked Auction: A Linked Auction is a special type of auction item that links to another site or URL for a bidder to place a bid or outright purchase the item. It allows you to enter a URL that the bidder or buyer will be taken to when they attempt to place a bid on the item. |
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