The benefits of online auctions

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Updated: June 18, 2019
benefits of online auctions

The Internet has revolutionized our mode of consumption and the global economy. Access to information is faster and now we can almost buy everything and sell without moving. All you need is a computer or smart phone and an internet connection to keep up with the latest news. The auction world is also experiencing its digital revolution with the development of online auctions.

Online Auctions vs. Traditional Auctions

Until a few years ago, auction houses attracted a well-off clientele from a certain social class, very often collectors. There reigned in these places a particular atmosphere, there were side by side, in eight closets, buyers and sellers of invaluable works. Even today, vintage cars, unique jewelry and works of art from around the world can be sold at auctions organized by traditional auction houses.

But the development of the Internet and new technologies has brought to light a competitor who has become formidable over time: online auctions. They appeared in 1995 and they continue to grow with the appearance of merchant sites and dedicated startups.

The democratization of online auctions has widened the diversity of properties for sale and the public has become much broader.

benefits of online auctions

What are the advantages of online auctions?

The success of the online auction stems from a number of factors. One of the main advantages is the 24-hour auction opening around the world. A physical presence is no longer essential. The Internet allows anyone to sell or buy at auction from their computer no matter when or where they are. There is, therefore, no geographical barrier or problems with jet lag.

Items for sale can be sourced from around the world, expanding the audience. Who says a wider audience, says more diversified goods. Today, anyone can auction any property. Some sites use experts to certify property, but it is not automatic.

Property payments are secure and simplified. You pay the property once the sale is over, without the additional costs as is the case in traditional auctions. In general, the sales platforms offer assistance in the event of a problem.

Traditional auction houses have adapted to this digital transition by creating their own online sales sites.

How do online auctions work?

Just sign up for free on an online platform and log in with your username. You can select one or several sales and choose a lot which interests you by consulting its descriptive card (detailed information on the product and the sale, conditions of sale …).

Once registered for sale, you can either bid by phone or if you cannot be present, you can leave a purchase order.

The purchase order allows the buyer to define the maximum price that can be paid for the purchase of a good. On the Internet, there is no auctioneer per se. It is the platform that will bid in place of the buyer as soon as his bid is exceeded by a “competitor”, and this, up to the maximum price previously defined.

Upon sale, an email is sent to the buyer to notify him if he won the auction. If this is the case, he will have to pay online the amount awarded and will not be able to recover his property once the payment has been approved.