Are Online Auctions Replacing The Good Old Gravel Banging?

The world of business is all about initiating new developments that can help brands become more efficient in providing coherent services and promote growth through all segments of the company. With time we have observed a vast shift in the way people perceive these developments- be it in terms of a new social media venture or upgrading your website with more tangible features. This is all part of the process of developing a more refined business.

In the same way, the concept of auctions are not merely about listing and selling products anymore. It has transitioned into becoming a very important marketing tool in order to build the function of a brand and holds immense potential to change the brands identity.

To understand the system of auctioning better, let us have a look at what are auctions and how they have made a transition over time:

Traditional Auction

Traditional auctions, also known as live auctions, are physical set-up spaces that are dedicated towards conducting events that bring products and potential bidders together under the same roof, while having an auctioneer manage and call out the bidding prices.

These auctions allow bidders to come in close contact with their product of interest, get more hands-on information about the commodities, get an estimate of the price and possibly have a discussion and ask queries directly to the seller. This process of auctioning surely helps bidders make a relatively well-informed purchase decision when it comes to selecting and bidding an appropriate amount for the products.

It also caters to becoming a social event of sorts, where bidders and sellers get to meet, discuss and network. The auctioneer calling out bids with people following it up with competitive price points to see who can get their hands on a product is not just part of the thrill but also creates excitement and allows participants to enjoy the process.

It is obviously very rewarding to have claimed the highest bid and to instantly receive your product in the matter of a few minutes. These are some of the particular features of traditional auctions that surely make it worthwhile.

Online Auctions and How They Work 

Auctions that are conducted in a virtual space through a website, where buyers can click on the product, find its details and quote a bidding price within the scheduled time in order to be eligible for the bid.

Online auctions are much like a digital flea market where sellers can have as many or as little as one product for buyers to bid on. Participants are required to register beforehand in order to be part of a particular online auction event. At the end of the auction, sellers and buyers and get in touch through email in order to discuss the payment and receive the delivery of goods purchased.

There are primarily two types of online auctions- person-to-person and business-to-person auction. In the latter, sellers have full control over the products being offered and the payment being made whereas in person-to—person auctions small businesses or individual sellers directly offer their products to the buyers.

The New Age of Auctions

With the advent of the Internet we have observed a gradual shift towards the digitalization of everything ranging from retail to trading. The concept of online auctions has seen a rise in numbers considering it entirely eliminates the physical limitations of live auctions such as the location, space, time and small target audience.

Online auctions have the potential to comparatively cater to a much larger audience, while being able to manage inputs by each one of them depending on the scheduled time and preference. Most companies today try and invest in both online and live auctions considering that there is a loyal segment of audience for both the fields.

For buyers who prefer to have a closer look at their products, have direct contact with the seller and those who enjoy the entire process of a live auction with its paddle boards and gravel banging- will always prefer to be a part of live auctions for the sheer experience of it.

But one of the most important advantages of online auctions is that it gives all the sellers and businesses an equal opportunity at the playing field, as each participant is featured only as often as their competitor brand. There is no scope for biasness or error in terms of equality.

While live auctions take place on a specific date and usually end up going on through the entire day- it might not be possible for participants to attend the event at all times. Something might come up, they might get busy or simply may not be able to make it to the location on time.

On the other hand, online auctions are usually set up nearly 3 to 4 weeks prior to the auction closing which gives consumers enough time to do their research and put in a max bid. This concept is great since it allows consumers to not just have time to make their decision but also maybe attend multiple online auctions within the span of a single day as opposed to being part of merely one live auction.

With the advent of smartphones and high speed internet facilities, it has become exceedingly convenient for people to become a part of online auctions. Especially with max bid options where- once you set up a maximum bidding amount, the site will automatically keep bidding for you till the maximum amount you have entered has been reached.  

With items like artwork, books, antiques and even properties being put up on bids today, it has become an easy mode of buying and selling with buyers having the freedom to take time to do their research and then make an informed choice- as opposed to live auctions where participants are not given that option.

It is likely to see a further rise in online auctions with leading companies like Ebay adapting to better strategies and popularizing the concept of new age auctioneering.