Since the advent of the internet, businesses have been scrambling to take advantage of the several changes that have happened in their various markets. While the consumer side of the Web explosion has been a bit slow in growth, the business-to-business (B2B) market has quietly surpassed all expectations.
One of the key business models that contributed to this new market expansion is the online web auction. Traditional auctions are now being instantaneously adapted by businesses to “real-time” advantage of the internet to reach new market which have previously been cost-prohibited. Advantages like the scope and size of the audience are giving internet auctions a key role in emerging global economy. In this article, we will be looking into what exactly B2B online auctions are and how they have impacted emerging business paradigms.
What Exactly Are B2B Auctions And How Can They Help Business Owners?
In recent times, technology has been designed in such a way that it offers great benefits to businesses allowing them to participate in real-time auctions. This is what is called the B2B online auctions. These websites and software packages operates across a wide range of industries and instantly connects vendors and buyers in real-time and on an international scale.
On B2B auction sites, registered users can sell and buy goods and services over the world and at the best price. Remember, there are bigger demands for all goods and services in the world range than it is in one country. That is why B2B online auctions have been so impactful on many businesses. Now, companies can enjoy great benefits from the wide international markets. For instance, a user doing his business in Europe can buy or sell goods via the internet to China, USA, India, Saudi Arabia, Pakistan, Japan, Dubai, Brazil, Australia, and other countries.
It simply allows users participate in the most effective and simplistic type of auction where they can sell to the highest bidder without incurring significant marketing costs.
What Are the Different Classification of Online B2B Auction?
There are several types of B2B online auctions but they are all widely classified under the following two categories:
- Standard auction: in a standard or regular auction, sellers put up an item while buyers place bids (how much they are willing to pay for such item) until the close of the auction. At the end of the auction, the item goes to the higher bidder.
- Reverse auction: unlike in regular auctions, a reverse auction requires sellers to bid for the price at which they are willing to sell their goods and services. The buyer puts up a request for a needed good or service while sellers place bids for the amount they are willing to be paid for such service or good. At the end of the auction, the seller with the lowest bid wins.
Another popular auction in the B2B online auction world is the penny auction. This is an exclusively online auction where a buyer is required to first purchase the right to bid in the auction before it begins.
Why Do B2B And Online Auction So Popular?
Vendors and sellers aren’t the only one that profit through the use of B2B auction sites like Kitmondo, but the buyers too. It serves as a great medium that connects both sellers and buyers from a global pool, while also allowing them connect and complete transactions as if they were in person.