eBay is continuously adding innovative features as its members grow each day. These features ensure that buyers and sellers will have smoother transactions than ever before. eBay is a huge marketplace where profit and shopper's convenience are some of its main concerns. Aside from implementing a tight buyer protection through the preferred method of payment PayPal, and through seller's feedbacks and ratings, the site has several types of auctions that provide sellers and buyers options to bid on items through an auction type they find most convenient. Knowing the different types of auctions on eBay prepares anybody who wants to be an eBay seller so that he can decide on the most profitable auction type.
Traditional auctions are the most common type of auction most eBay sellers use. It works just like any auction where a seller posts his products, place a starting price, and wait for buyers to bid on the items. The seller can choose to run the bidding for up to ten days. The winner is determined by the highest bid placed for the item. Buyers compete with one another to place the most competitive offer so they can win the item posted. This type of auction has been around eBay since it started and it is ideal for sellers who want to profit from the item properly. Buyers can benefit from this auction by knowing the tricks on how to bid for items listed under traditional auctions.
Dutch auctions are a far cry from traditional auctions. But as with traditional auctions, Dutch auctions can run up to 10 days. The difference is that sellers can post as many items as they want and buyers can bid on several items at a time. The final price for the item is determined by the lowest bid successfully posted by a bidder when the auction reaches its deadline.
For instance, a seller posts five gadgets up for bid under the Dutch auctions and started the bid at $5. If five potential buyers all placed $5 as their bids, the gadgets will be won by the winning bidders for $5 each. But if one bidder bids for one gadget for the price of $7 while another places a bid for $8, the final price is still determined by the last lowest bid placed for the item. If it was $5, all five winning bidders will get each item for $5 regardless of how much the others bid for it. If there are more bidders than the number of items available, the lowest bidders are eliminated one by one. But the earliest bidders are always eligible and in the case of tie bids, the longest bidders are also considered.
Reserve Price Auctions
In reserve price auctions, the seller is given an option to set an unidentified minimum amount for the item he is selling. This provides sellers with some kind of a safety net. By opting for the reserve price auctions, sellers avoid experiencing losses for his investments. When the auction ends and none of the bidders are able to match the undisclosed reserve price, the seller can choose to withdraw the item and none of the bidders will win. The highest bidder is also not under any obligation to buy the item, which is the protocol for traditional auctions.
eBay imposes a charge of $2.00 to $100.00 for sellers wanting to sell under the reserve price auctions. If the undisclosed price is $200, eBay charges 1% of the reserve price. The fee is refunded once the item is sold. Although reserve price auction protects a seller's investment, many buyers are put off by this kind of bidding system. To attract buyers, many sellers are upfront about the type of auction they have opted to sell their items under. This allows buyers to choose whether they want to bid for the item or not, depending on their budget.
Restricted Access Auctions
Non-restricted categories are off-limits on eBay. The Adult Only space on eBay is for items that are for selected buyers only. eBay will ask members to log in to this area if they want to access it. This is to keep buyers that are not interested in items listed under this category from accidentally stumbling into them. Members who access this area must agree to the terms and conditions specified by eBay. The Adult Only area cannot be accessed through a normal search or by searching for it in the site.
If a buyer wants to view items under this category or if a seller wants to sell items under the Adult Only category, he must have his credit card verified by eBay. If a seller attempts to list adult items under any regular categories, he risks suspension from the site.
A private auctions as its name entails, keeps bidders' names private. Bidders viewing the item will not see those who have already placed a bid or how much they have placed for the item. These are usually utilized by sellers selling rare items. This is also especially handy for sellers who are selling items in bulk for other eBay sellers. Bidders are kept private and buyers can't search for the winning bidder and find out how much he is going to sell the items for on eBay.
Private auctions are also useful for bidders who don't want to be associated with the items they have purchased. If the items in question are considered racy and improper for a bidder to bid on it, private auctions would cover his identity sufficiently. But then again, this type of auction is not for everybody. This might be a little discouraging for new eBay users. However, if a seller is targeting more experienced shoppers, then this auction is a good option.
Best Offer Auctions
This type of auction is relatively new on eBay. It was created as a means for buyers to reach out to sellers to try to offer a more considerable price. The Best Offer method provides buyers an option to give a reasonable offer to the seller. It is the haggling version of eBay, where most sellers do not entertain the concept of it. The Best Offer auction gives both the seller and buyer a chance to arrive at a price agreed by the two parties. Many buyers look for this type of auction for the obvious reason that they can offer a price that is within their budget range. Sellers are also able to attract more buyers and still earn reasonable profits from the agreed price.