Businesses Run From Home

The functionality of buying and selling in an auction format is made possible through auction software which regulates the various processes involved. An online auction is a portal in which participants bid for products and services over the Internet.

It acts as a marketplace for individuals and businesses who use the site to auction off goods and services. And paying for them, bidding on items, it merely facilitates the process of listing and displaying goods. EBid does not actually sell goods that it owns itself, like most auction companies. Is one of the better known examples, one of the the world's largest online auction site, eBid.

Although members are not restricted to using this form of payment, eBid uses its own online payment service PPPay to allow for buyers and sellers to pay each other in Euros and Pounds Sterling. Netherlands, spain, germany, france, italy, ireland, australia , canada, united States of America, united Kingdom, eBid operates in ten countries.

Listing a basic auction on eBid is free and a small percentage final value fee is paid on selling your item, unlike eBay.

The advantages of using eBid to sell your goods include:

This convenience increases the number of bidders. And bid, decide, giving purchasers time to search, at the discretion of the seller), items are listed for a number of days (usually between 1 and 10. Bids can be placed at any time (24/7). No time constraints. 1.

And reducing the seller's minimum acceptable price, reducing costs, the items do not need to be shipped to a central location. : number of bidders). : number of sellers) and the number of bids for each item (ie. This increases the number of listed items (ie. This makes them more accessible and reduces the cost of "attending" an auction. Sellers and bidders can participate from anywhere that has internet access. No geographical constraints. 2.

This creates a highly loyal customer segment. Some bidders may bid primarily to "play the game" rather than to obtain products or services, " Much like gambling addiction. The bidders wait in anticipation hoping they will "win. The social interactions involved in the bidding process are very similar to gambling. Intensity of social interactions. 3.

There are a large numbers of bidders, and the social benefits of the auction process, the ease of access, the broad scope of products and services available, because of the potential for a relatively low price. Large number of bidders. 4.

There are a large number of sellers, and ease of access, reduced selling costs, the potential for a relatively high price, because of the large number of bidders. Large number of sellers. 5.

And the more valuable the business model becomes for all participants, the larger the system becomes, the more the circle operates. In a virtuous circle, . Etc, which will encourage more sellers, will encourage more bidders, in turn, which, the large number of bidders will encourage more sellers. Network economies. 6.

They attempt to convert part of the consumers' surplus (defined as the area above the market price line but below the firm's demand curve) into producers' surplus, as such. Auctions are a form of first degree price discrimination. Captures consumers' surplus. 7.