Auction101 - Bidding Wisely

On Bidding Wisely

An auction is a public sale, that is usually offering products that are not available elsewhere. It can be held online or in a predetermined place with two main players: the sellers and the bidders. The seller establishes the starting price and the bidders offer amounts that should be more than the starting price. The highest bidder will get the product. For some, it is an exciting way of doing shopping. A venue for buying collector and unique items.

Today, there are two kinds of auctions that bidders can choose from. These are online and traditional auctions. Their only difference is the auctioneer and web server. For online auction, the web server acts as auctioneer, storing the bids and sending confirmation via e-mail to the highest bidder.

Some advantages in joining online auction benefit the buyer. A thorough research on the product can be done before placing the bid. Giving the buyers more time to compare prices and quality. In addition, since online auction covers wider audience, products being offered are unlimited. From collectibles to spare parts to computers.

Here are some tips in joining online auction:

1. Research – Before placing a bid, it is wise to check out the reputation of the seller, the product and the price especially for collectible items. Inquire about the seller’s location. Transacting with people from other countries maybe a lot complicated and expensive due to shipping and handling of products.

2. Payment – Inquire if they are accepting credit cards. Be more careful with sellers who are only accepting money orders or cheques. Using a credit card can be more convenient to the buyer because it can be disputed if something goes wrong with the transaction.

3. Budget – After doing the research, set the reasonable bidding amount considering the quality of the product and the money’s worth.

4. Privacy – Private auction can be done online where confidential information such as the bidder’s e-maid address, products bought, etc. are not showing. This works well with individual who would like to keep the transaction undisclosed.

5. Convenience – If a bidder does not have the time to stay online too long to bid for an item, he can opt for Proxy bidding. It means the system will do the bidding even when the bidder is offline. Ex. If the bidder is willing to get an item for $50.00 that is currently being offered for only $15, the bidder can ask the system to do the bidding until the bidding price reaches $50. At the end of the bidding, an e-mail confirmation will be sent to the bidder if the product was sold to him or to a bidder that offered more than his bid.

Standard auction has the same principles with online auction. The only differences are the venue and the people involved. In this type of bidding, the bidders can actually see the products up for grabs, the other bidders, and the auctioneer. For first time bidder, the fast-talking auctioneer and anxious bidders can be overwhelming. Here are some tips for standard auction bidders:

1. Price – start modestly. Placing the highest bid early is not recommended. An item may be appealing to one bidder but not to others. If the demand for an item is low, the asking price may be less than what the bidder is willing to pay.

2. Product – A wise bidder chooses the products to buy even before going to an auction and sticks to it. This is a systematic approach in getting what is wanted and needed.

3. Limit – After choosing the items, a bidder must set the limit and sticks to it. The idea of going to an auction is not only getting an item but also spending money wisely.