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Online Auctions Vs. Traditional Auctions

Friday, October 2nd, 2015

You may have been to a traditional auction where a fast-talking auctioneer calls out bids while buyers raise their paddles to secure their price. Traditional auctions offer many advantages, but online auctions are becoming a more popular option. It is important to understand how traditional auctions and online auctions are managed, because there are some key disadvantages and benefits for both types.

How traditional auctions are managed

In a traditional auction, or live auction, potential buyers get the chance to examine items up close and ask questions before purchasing. Bidders get an idea about what type of items will go up for auction and can estimate how much items may go for. Traditional auctions allow buyers to discuss items with the seller and get details about them before the auction begins. Traditional auctions also allow buyers to make educated purchasing decisions in person.

Traditional auctions are exciting and fun. The auctioneer calling out bids and people competing to see who will win each item can be entertaining. It’s easy to get caught up in the excitement of a traditional auction. It’s also a social event where buyers and sellers get to know each other, which can help people with common interests network.

In a live auction, you get the satisfaction of bidding, buying, and walking away with your item in hand as soon as possible. After the rush of winning the item, it’s satisfying to pay for your purchase and have it in hand within minutes of placing the winning bid.

How online auctions are managed

The main difference between traditional auctions and online auctions is that online auctions are meant for convenience. Items are listed on auction house websites in a catalog fashion, and buyers can click on them to learn more details about them. An online auction may be less expensive for sellers due to the elimination of costs associated with holding a traditional auction, but may limit buyers.

Once buyers see items they are interested in, they can bid for purchases using their credit card information. Online auctions are available to more potential buyers, not just buyers located in a specific area near the auction house. Having a wider range of bidders during an auction can be beneficial to the seller.

Disadvantages and benefits of traditional and online auctions

There are benefits and disadvantages to both auction types. A traditional auction is exciting, and buyers can get caught up in the bidding. The excitement may raise the stakes for other bidders and become an advantage for sellers to make more profit from their items. A live auction allows buyers to see the items beforehand and discuss them with sellers, while an online auction doesn’t give buyers that benefit. You must be present (or have a representative) at a live auction to bid, but online auctions have the benefit of allowing anyone to bid, anywhere.

A traditional auction has costs associated with it that an online auction does not. Online auctions are becoming more popular due to the fact that they are convenient, and in today’s busy world, this is a great benefit. Buyers don’t have to take time out of their busy schedules to attend an auction held at a certain time and location. Online auctions allow buyers to log on, place their bids, and pay for their purchases on one website.

For more information

While there are benefits to both traditional and online auctions, the bidder and seller must decide which platform is better for their auction experience. Would you like more information about holding or attending an auction? Call the experts at High Plains Auctioneers at (806) 244-6776 or Contact Us through email to learn more. You can also check out our upcoming auctions.