Question

John has recently discovered that online auctions can provide him with more opportunities to expand his business on the web. However, John has to conduct research about the various categories of auction Websites before choosing one that suits his business needs. Briefly explain three broad categories of auction Websites that should form part of John's research.

Answer 1

In today's competing and technically stronger world, a lot of things have now changed drastically. Let us take the example of Auctions. Earlier, Auctions were supposed to be like bidding is done on the houses or properties of the people in case of debt and they had to leave their places. My main point is that earlier auctions were only related to the houses and the properties of the people who had a debt or want to sell their houses,etc.

But now A very innovating concept of Online Auctions was introduced. It has changed the meaning of the auctions or more precisely it has expanded the meaning of Auctions. Now, its not only houses or properties for whom auctions can take place, But even a common man, who feels that he has got a quite unique thing can conduct an auction for it online.

This concept of Online Auction have also provided advantage to various small or larger Businesses.

These Online auctions are held in various websites which can be divided again in different categories which I will be describing in a moment.Now, John have to select very wisely among the categories so that he can expand his business.The categories are:

1.Purely Auction Sites: These are some old sites for whom still the meaning of auction is same,i.e., they are either introducing properties or the unique items which various sellers place on their sites and random people can bid for them.I feel that if John wants to expand his business he must not choose these sites as they supports only unique items. Ex : onlineauctions.com.

2.Acting as e-commerce websites: These sites are just like the e-commerce websites,i.e., various users can place their various products details on their sites along with their prices, simply like a free online store.Ex: ecrater.com. Such kind of sites are very useful for the businessmen who want to enhance their business using Web.

3.Sites for Overstocked Manufacturers: These sites are particularly for the overstocked manufacturers who place large amount of their items on the site and sell in bulk at a discount of about 20-80% on the MRP. The overstocked manufacturers have attained a lot of profit from these sites as the statistics says. Ex: ubid.com. So, if John is an overstocked manufacturer must refer to these sites.

4.Sites where buying can be done using credits: There are some sites of online auction where you can buy the items not by using the money but by the credits which you get by referrals or by logging into those sites. These sites can also be used for uploading their products. Ex: listia.com.

So, Now John can select very wisely from the above mentioned categories in order to expand his business according to his requirement.

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