Online Auctions vs. Traditional Auctions
Online auctions offer a plethora of benefits to buyers and sellers alike
The most significant difference between traditional and online auctioning is the elimination of geographical barriers and scheduling and financial optimization. On-site auctions are only able to draw sellers and buyers from the immediate vicinity and participation is limited by space constraints, while online auctions enable virtually limitless participation from across the globe. Virtual listing and bidding also overcomes the health concerns and restrictions posed by the current pandemic, allowing participants to list and bid from the safety of their home. In addition, while traditional auctions are often associated with high-value items such as vehicles, furniture, jewellery and collectibles, online auctions list items ranging from real estate and electronics to gems and clothes.
Unlike physical auctions which are typically limited to a few hours, with limited viewing and inspection times, online auctions such as those hosted by CeylonAuctions.com can be conducted for days or weeks and are available for users to browse all day every day. With listing, bidding and browsing for lots ranging from a single item to bulk inventories, from any location or device, sellers don’t need to wait months to accumulate inventory, rather listing and selling as items become available, thereby ensuring more liquidity and cash-flow benefits. Vendors can now take back control from physical auctioneers.
Physical auctions can only feature a limited number of lots at a time, with items that are unsold having to be removed by the seller. Online auctions however feature an unlimited number of lots, accept an unlimited number of bidders and often offer the option to re-auction at no additional cost.
Traditional auctions incur costs including auctioneer fees, premises, security and transport fees which are all eliminated with e-auctions. Sellers partnering with Ceylon Auctions only pay a nominal commission on the hammer price on items that are sold. The need for entrance fees, cash deposits upfront and carrying bulk cash in person are all eliminated with online auction platforms.
The bidding process at traditional auctions can be long and convoluted and vulnerable to malpractice. The virtual nature of e-auctions and the anonymous bidding process ensures greater transparency and more accurate prices, increasing seller integrity and protecting buyers. Automated bidding at online auctions allow sellers to enter a maximum price point and the system automatically increases bids against competing bids, ensuring bidders do not need to spend long hours at the auction or miss out on great deals.
As e-commerce becomes an increasingly viable and efficient method of business, bringing global opportunities within local reach, taking traditional auctions to the on-line space ensures the industry stays relevant and benefits from the growing advantages of e-commerce.