Auctions are a good way to sell a commodity that doesn't have a fixed or determined value - i. when the seller is unsure of the price that can be achieved (As the goods are of undetermined quality).
So the on-line auction can simply be a process of putting buyers and sellers in touch with each other, with the seller then transporting the goods to the successful bidder, and the bidder making payment. Usually Auction sites act as forums through which internet users can log-on and assume the role of either bidder or sellers. As sellers, you are able to post items you wish to sell, the minimum price that you require to sell an item and a deadline to close the auction. Some sites allow you to add features, such as a photograph or a description of the item's condition. As a bidder, you may search the site for availability of the item you are seeking, view the current bidding activity and place a bid (bids are usually in designated increments). Some sites allow you to submit a maximum bidding price and will continue bidding for you. .
Although auction sites usually require a commissions on sales, these sites are only a forum for online buying and selling. They do not involve themselves in payment or delivery. After the auction has been completed, both the seller and the bidder are notified, and the methods of payment and the cost of delivery is then worked out between the two parties.
SUMMARY OF eBAY.
On eBay, people can buy and sell just about anything. The company collects a submission fee plus a percentage of the sale amount. The submission fee is based on the amount of exposure you want your item to receive, with a higher fee required if you would like the "featured actions- in your specific product category, and an even higher fee if you want your item to be listed on the eBay home page under "Featured items-. This listing will not appear every time you go to the home page, but it will be shown on the site periodically.