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Why you need online auctions

April 03, 2020

Why you need Online Auctions

Great deals, reasonable prices

  • The seller gets compensation for something he might have otherwise discarded.
  • the buyer receives something he wants for the price that he’s agreed upon.
  • The item is assigned to the buyer who objectively wants it the most, and therefore we can assume this is the optimal/best use of the item.

Convenience

  • Location - The primary benefit of online auctions is convenience. As a seller you can reach buyers from any location. As a bidder, you can make offers no matter your location.
  • Time - The auction is also open 24/7. You also save time by not having to move around marketing, selling or buying items.

Open

  • Instant Feedback - You know instantly if you have won the bid, how many people are bidding against you etc

Freedom

  • Choices - Online auctions offer more choices.
  • Level playing field - Sometimes, bidders and would-be buyers cow away from purchasing a particular product because of a suspicion that the value indicated isn’t an accurate picture of the product. However, online auctions eliminate this, giving every participant the confidence that the commodity’s value is right. This confidence is further boosted when more bidders express interest in it.

Why does Government need Online Auction

In the developed countries, online bidding for electronic procurement has been widely used and forms a mature business model. Mature because it has been successfully implemented in a variety of government organizations and enterprises. In China, for example, the Federal Department of General Affairs purchases up to $10 billion worth of materials each year through online bidding. Likewise, in Singapore, the government through the Government Electronic Commerce Center (GECC) purchases products worth $1.1 billion. The Singaporean Government also plans to transfer 80 percent of procurement to the GECC.

China implemented a ‘bidding act’, and has been vigorously promoting the bidding system. Due to the advantages of online bidding over the traditional procurement process, the Chinese government has absorbed the online bidding procurement into the e-government system, and each year, government departments use online bidding for public procurement.

References


Written byHelen and Nonso Ikwuagwuin the spirit of power, love and a sound mind