Online Auctions are unmistakably among the hottest e-Sourcing technologies on the Internet business today. But what exactly is an online auction anyway and what are its benefits? According to The Pocket Oxford Dictionary, fourth edition (1942), an auction is a “public sale in which articles are sold to the highest bidder.” And if done on Internet it is online auction.

Online auctions create a competitive advantage because they make it relatively simple for Procurement managers to negotiate on all corporate purchases and create better deals.

Let us see some common myths surrounding online auctions:

MYTH #1: Only very familiar, particular or consistent items can be auctioned:

The myth came into being because no one understood how to measure criteria other than price. Total cost auctions take price and no-price factors, such as delivery time or customer service, into account, and they allow a customer to weight each factor accordingly. This is only a myth because when someone with sourcing expertise takes a creative approach to defining or breaking down the item in question, that item or its components can generally be auctioned.

MYTH # 2: Auctions are only effective when there is a level playing field:

This is false since a level playing field simply doesn’t exist. And, not all suppliers are alike. Face-to-face negotiations have long proven this fact. Procurement managers can now normalize for differences (e.g., customer service, warranty terms, delivery cost, etc.) using Web-based technology. In effect, these technologies measure total cost allow customers to compare apples-to-oranges.

MYTH #3: Only Internet-savvy suppliers can participate in an online auction:

Today, the majority of legitimate suppliers have access to computers. The myth that only internet-savvy suppliers can participate in an online auction is wrong. In order to participate in an Internet based online auction, the suppliers merely need to be able to log on to the Internet, log in to a web site, and log their bids. It’s just very simple. Suppliers don’t have to know how to navigate the World Wide Web or use any sophisticated search engines to participate.

MYTH #4: Maximum benefits could be derived only if large number of suppliers participate:

For any online auction, competition is a must and you must create a competitive environment, no matter if the suppliers is 4 or 400. Internet auctions put the business “up for bid.” Incumbents are wise to take notice. Once existing suppliers believe that the buyer really will change where he takes his business, a competitive environment is created. Thus concrete results for online auctions occur irrelevant to number of suppliers.

MYTH #5: Only products are auctioned?

Not true – in fact, services are also auctioned. Services such as Telemarketing services, Cellular phone services, Security services, and temporary labor services are all good examples. For example, a particular auction site held an auction for telemarketing services that resulted in an 18% cost reduction. The auction involved over 60 suppliers and more than 700 bids. The study shows that apart from products, services can also be auctioned.

MYTH # 6:Auctions are carried out only once in a year:

Event online auctions are generally used for categories of goods and services that require a long-term contract (say one year). These will achieve better results if auctioned year (or less). For example, a buyer may auction off the purchase of 10,000 PCs over a two-year period.

It is important for all to expand their concept of what can be auctioned, as long as the value of each item is ‘elastic’ enough to preclude fixed pricing. Once they have done that, the possibilities are almost endless.

Car auctions are a good place to get good a bargain on cars. But buying cars from auctions can be very complicated. This is particularly true for the uninitiated. Of course the cars in auctions are generally cheaper. But they are cheap because they lack the guarantees that come with cars bought from dealers. The rules in auctions are simple, you bid an item, you pay for it, and you own it.

It is therefore not advisable for persons without much experience in motor vehicles to just go to an auction and buy a car.

What you’ll need if you’re planning to buy a car in an auction is a good eye, good observation skills and a willingness to learn the car auction process.

You can even make it a business by buying cars at auction and then selling them at a profit. There are several people who have made huge profits by buying and selling cars at auction.

There are basically two kinds of car auctions, local car auctions and online car auctions. Each of the auctions works differently. Each has a different set of rules so you must study them very carefully if you are planning to buy a car from either kind of auction.

If you want to buy a vehicle in a car auction you must first pre-register with the local auction you want to join. The pre-registration process won’t take much of your time and will provide you all the essential information that you will need in order to buy a car. An auction site will often have an auction staff who will explain to you the rules of their auction site and the procedures and instruction on how to participate and bid on the cars.

It is wise to inspect the cars before the actual bidding begins. Ask the auction organizer or staff if they can allow you to take a closer look at the cars before the start of the actual auction. Another wise decision is to set your payment limit before the actual sale. This way, you won’t fall victim to the trap of overbidding.

As in other auctions, it is very important that you signal your bids carefully to the car auctioneer to avoid confusion. Settle your transaction as soon as the auction ends. Look for the block clerk and settle your accounts with him. A car auction staff will usually be available to assist you when you are ready to pay for the vehicle you have won. He should also be able to guarantee you a good title for the vehicle.

You must also check the vehicle after you have won and settling your account. Take the vehicle for a test drive and make sure that it conforms to the guarantee and representation made during the auction.

Most auction sites would accept check or credit card if you cannot pay the car with cash. An auction staff will also usually give you a third party financing offer. It is advisable though to have your own finances ready before entering a car auction. Outside financing is usually cheaper than most in-house financing of auction sites.

Ask for an invoice copy from the auction staff. This will enable you to drive or ship your newly bought car to your location. Most car auction managers will give you good deals on shipping arrangements so inquire about this.

There really are no significant differences between a local auction and an online auction. Online car auctions work more or less the same way as local ones. The only disadvantage of online auction sites is that you won’t be able to inspect the car as you would in an actual car auction. In participating in online car auctions be sure that you will be provided with all the necessary information about the car upfront and that there is an actual photograph of the vehicle.

Cars bought from an online auction are usually shipped to the buyer for a minimal fee. Inspect the car immediately upon arrival at your location to minimize risks.

You are now ready for your first car auction. Happy bidding!

Over the years, eBay has introduced all sorts of different auction types, in an effort to give people more options when they buy and sell their things on eBay. There are many people who don’t like the idea that their item might sell for a far lower price than they intend. Equally, there are people who have hundreds of the same item and don’t want to sell them individually. This email gives you an overview of the different kinds of auctions and how to spot them.

Normal Auctions.

These are the bread-and-butter of eBay, the auctions everyone knows: you bid, others outbid you, you outbid them, and the winner gets the item. Simple.

Reserve Auctions.

Reserve auctions are for sellers who don’t want their items to sell for less than a certain price – a concept you’ll know about if you’re familiar with real auctions. They work just like normal auctions on eBay, except that you will be told if your bid has not met the reserve price set by the seller. If no-one is willing to meet this price, then the auction is cancelled, and the seller keeps the item.

You can spot these auctions by looking out for ‘Reserve not met’ or ‘Reserve met’ written next to the current bid on an item’s description page.

Fixed Price (‘Buy it Now’) Auctions.

Buy it Now auctions can work in one of two ways. A seller might add a Buy it Now button to a normal auction, meaning that you can choose either to bid normally or to simply pay the asking price and avoid the whole bidding process. Some sellers, though, now cut out the auction process altogether and simply list all their items at fixed price. Recently, eBay added a twist to fixed price auctions: the ‘best offer’. This means that you can negotiate a price to someone who offers their items using Buy it Now, which could be a great way to get a bargain on things that don’t seem to be selling.

Fixed price auctions are easy to spot, as they have a little ‘Buy it Now’ logo either next to or instead of the current number of bids on the search listings page.

Multiple Item (‘Dutch’) Auctions.

These are auctions where a seller is selling more than one of a certain item. Dutch auctions can be done by bidding. Buyers bid a price and say how many items they want, and then everyone pays the lowest price that was bid by one of the winning bidders. If you have trouble getting your head around that, then don’t worry – everyone else does too! These auctions are very rare.

What is more common is when a seller has a lot of one item, and lists it using a combination of two auction types: a multiple-item fixed price auction. This just means that they say how many they have, and offer them at a fixed price. You can enter how many you want and then just click Buy it Now to get them.

After all this, you might find yourself facing a dilemma: when you have the option, should you bid, or should you just use Buy it Now and save yourself the hassle? That’s what the next email will be about.

Car dealer auctions are becoming quite popular today. They are a great venue for the average citizen to be able to find a good car at a very reasonable price. Car dealer auctions are also a very useful service for small used car sales operations as they can keep a constantly replenished stock of used automobiles that are often in very good quality or require a minimal amount of repairs to make them an easy sale to the car shopping public. Many dealerships will also make use car dealer auctions as a way of rotating their stock by auctioning off the cars that have been on their lot for an extended period of time and then buying new cars from the incurred profits.

Where Does One Find Car dealer auctions?

Car dealer auctions are a very easy thing to locate with the great wealth of information that surrounds us. Many times the local newspaper will have several listings for various car dealer auctions around the area. Just pick up the local paper and give it a good looking over, especially in the classified advertisements section and you will likely find a car dealer auction near your hometown. Special times of year, such as the holiday season or income tax return time, seem to bring car dealer auctions out of the woodwork as they try to boost sales for the year.

With the easy access to the Internet these days, why not take a peek at your favorite search engines result for car dealer auctions? With the popularity and ease of email, many car dealerships even offer an online auction and thus, many times, the search will lead to car dealer auctions that you can participate in with never leaving your home. Imagine sitting at your desk and buying a car while watching cartoons with your kid. Can you imagine any more efficient version of multitasking?

If none of these options strike your fancy, you could always ask around to find your local venue of car dealer auctions. The local new car dealerships can usually tell you if they plan on hosting any car dealer auctions in your area. After all, they really don’t want to lose your business to someone else and every person attending car dealer auctions is a potential sale and profit for the dealership.

In closing, get out do some checking and you will find car dealer auctions near your home town. With just a small investment of time and research looking for car dealer auctions, you could save yourself a lot of money and find just the car you are looking for.