Question

QUESTION 2
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 the three broad categories of auction Websites, namely:

1. General consumer auctions
2. Specialty consumer auctions
3. Business-to-business auctions

Answer 1

Here is the brief explanation of all three types on auction one by one :

1. General consumer auctions:

This type of auctions are digitized version of English auction along with the advantage of using technology. In this type of web auction, the sellers are allowed to set a base price for their product. and then Listed bidders can bid on that product with a increamental amount.

2. Specialty consumer auctions

These type of auction only focus on a special type of product rather than all types for example electronics, computer parts etc. These types of auction is on only a specific type and are easy to compete in comparision with general cosumer auction where there is already well established rivals.

3. Business-to-business auctions

Business to Business auctions have evolved mainly for the purpose of getting rid of excess amount of materials. This can be done either through liquadation brokers or in online auctions. In this model, large companies create their own website to sell their excess material and small sompanies partner with a third party host site to sell thier products that are excess.