DIFFERENCES BETWEEN ONLINE AND OFFLINE AUCTIONS

ONLINE AUCTION OFFLINE AUTION

Everytime
Just need internet
Diverse product/services, more buyer
Low advertisement cost , no inventory
Hard to control information about
product/service, low trustworthy
Know only through image
held at a specified time
Need places and frastructure
Limited product/services, less buyer
Higher advertisement cost , no inventory
Easy to control information about
product/service, high trustworthy
See and test products

TYPES OF ONLINE AUCTIONS

1. English auctions
 most common auction type round the globe
In this type of auction, a reserve price is fixed for the goods and the customers
offer larger and larger bid. Finally, the product is sold to the highest bidder

 Model : B2C, C2C

 Example : Ebay in Vietnam.
2. Internet Dutch Auctions
 Low starting prices are then increased publicly by auction participants
 At the same time, there will be many similar items posted on the auction floor,
the bidder will bid on the price and quantity. The bidder with the lowest unit
price is the winner
 The remaining bidders will pay the same unit price for the remaining products
according to the winner's unit price

3. Name your own prices

  Market leader : priceline.com
 Buyers make a suggestion for a product’s price (unlike the traditional way
where sellers quote a certain price) and the transaction occurs only if a seller
accepts this quoted price
 What happens is that the seller waits for a potential buyer's offer and can then
either accept or reject that 'named price' that the user had offered
 Often use for hiring car, hotel, booking airplane
4. Group Buying
 Group buying, also known as collective buying, offers products and services at
significantly reduced prices on the condition that a minimum number of
buyers would make the purchase
 In recent times, group buying websites have emerged as a major player in online
shopping business. Typically, these websites feature a "deal of the day", with the
deal kicking in when a set number of people agree to buy the product or service.
Buyers then print off a voucher to claim their discount at the retailer. Many of the
group-buying sites work by negotiating deals with local merchants and promising
to deliver a higher foot count in exchange for better prices
Ex: Adayroi ‘ Giờ vàng giá shock’’ . They give discount deal up to 80% or
product/services with very cheap prices. But only the 20-30 first ones can own that
product/service.