Online auctions in the Philippines are a type of e-commerce that has continually been overshadowed by popular online shopping websites. Buying or selling in an online auction is only considered to be an alternative to online shopping, however, the former has a lot of benefits of its own.
An online auction is basically an online service that mirrors the traditional process of facilitating an auction. The merchandise for sale is displayed on a website, and the bids are placed via the internet. In the Philippines, online auction websites have been around for as early as 2001. Most of them deal with automotive, office equipment and other kinds of wares.
The business model for online auctions is widely accepted because of many factors. It does not have a fixed time constraint, and it focuses on providing a flexible time limit for all its transactions. Because of it being an online system, it cannot be limited geographically. Lastly, since there is no limitation on who may sell and on how many can bid, this business model encourages a high-volume online business. Basically, the structure that an online auction company has makes it quite convenient for everyone that are facilitating and participating in its services.
Online auctions in the Philippines, and in almost any part of the world include such types of auctions such as Absolute auction, Minimum bid auction, and reserve auction. It is important to understand the difference between these three kinds of auctions as it can greatly affect the outcome of your bidding.
Absolute auction is the most common type of auction. In this type of auction, the highest bidder wins the item. It also ensures that a sale will happen. This type of auction is the one the attracts the most bidders since it is generally the best chance of most of the bidders to getting the product. It is recommended that bidders have a bidding strategy when participating in this kind of auction because the competition here will be very high.
In a minimum bid auction, the seller will have posted the minimum price they are willing to accept. It greatly reduces the risk for the seller, at the same time it ensures the potential buyers that they may get it at or above the minimum price.
A reserve auction is the type of auction that gives the lowest risk for the seller. The seller reserves the right to accept bids. The seller may choose to not accept the bid and not agree to a sale when the reserve is not met. This type of auction makes it so that the seller has a great deal of authority as to who can buy what is being sold. However, this also presents a disadvantage to the bidders because there is no guarantee of winning, even if one of them is the highest bidder.
To someone who is new to the system of online auctions in the Philippines, it is highly recommended for you to keep your preferences in mind when looking at online auctions. Each type of online auction has its own advantages and disadvantages. For example, the absolute auction is the best option for buyers, however, it also has the biggest competition; reserve auctions are more relaxed, since there is a possibility that bids may not be accepted; and minimum bid auctions are the middle-of-the-pack option for most buyers because this type of auction doesn’t necessarily attract many bidders.
The Difference between the Traditional and Online Auction
Conducting an online auction is not something that is drastically different from traditional ones. The idea of a traditional auction anywhere in the world typically looks like a fast-talking auctioneer calling out bids while buyers raiser their paddles to secure their prices. While online auctions are primarily done in the comfort of your home.
Traditional auctions are social buying events where potential buyers have a chance to inspect the merchandise closely and to ask questions they think are important all before purchasing. Because of this, bidders get a general idea about what type of items will go up for auction and they can also estimate how much they would probably cost. Before the main auction begins, buyers can have an intimate and sometimes very detailed discussion with the seller even before the auction begins.
Live auctions are considered by some of their participants as exhilarating and enjoyable. The scene of the auctioneer calling out bids along with the competition of who will win each item is a very entertaining event to watch. The atmosphere of these traditional auctions makes it easy for people to completely lose themselves in enjoyment while it happens. It being a social event also makes it a convenient place to form connections with other buyers and sellers.
Traditional, Live auctions are basically social events where only the select few who know about it can participate. It has a sense of exclusivity to it. In the Philippines, online auctions are all about the convenience of its participants.
Online auctions in the Philippines are done in a simple manner. All of the items are listed on an auction house’s website. The merchandise is neatly enumerated along with a picture of the object. People who want to learn more about an item only needs to click on the object and a detailed description of it will appear.
When someone sees an item that they are interested in buying, they can bid for purchases using a variety of payment methods, including credit card, cashier’s check, bank transfer, and other depending on the auction house you participated in.
Online auctions are less expensive for sellers because of the removal of the need to set up a large area for the event. It also makes it so that there are more potential buyers, including buyers from far away locations, even from different countries. The wide range of bidders
Although traditional auctions give more benefits than online auctions, the sheer convenience of participating in online auctions is enough to persuade people into preferring that over the traditional, live auctions.
Online Auctions in the Philippines
In the Philippines, online auctions have slowly been rising as one of the preferred ways to look for and buy items on the internet. The Filipino people have been embracing many of the services that let them do their work as easily as possible.
Potential buyers just stay in their homes and look for the things they want online. Sellers, on the other hand, don’t need to do a lot of the usual hassles that come with staging their auctions such as marketing and advertising it all over, as well arranging where the event should take place. The need to ask for details regarding merchandise is removed because it could easily be looked for on the internet.
Because of the internet, both the seller and the buyer will be very much updated with all of the things they need to know when selling or buying their product. With a push of a button, you can easily find out about the current price trends, the trustworthiness of the auction site you are using, and many other terms that an auction participant should know.
There has been a rapid growth in online auctions in the Philippines because these auctions have been able to leverage most of the positive characteristics of the more traditional auction methods. Unlike open auctions, the opening bid for an item should be closer to the actual value of the object. This is because of how easy it is to find particular details of items that are for sale.
Online auctions in the Philippines, and in most parts of the world are not fast-paced, unlike traditional auctions. This eliminates the possibly very emotional atmosphere created in open auctions. For buyers, this greatly reduces the probability of buying an item for way more than its original price.
The more controlled environment that an online auction has for sellers and buyers alike is balanced out by how far this kind of auctions can reach. Unlike traditional auctions, online auctions are open to anyone and everyone that want to bid for those items. The larger population and demographics that online auctions can have are some of the reasons why most sellers now prefer it over traditional auctions.
The online auction industry in the Philippines is becoming more and more popular to the masses, though still overshadowed by the more popular online shopping industry. To date, online auctions in the Philippines primarily deal with automotive, works of art, and is currently expanding to appliances and office equipment!
How to Participate in Online Auctions
The process of participating in online auctions is not as complicated as it seems. There won’t be any kind of entrance fee or extra payments in order for you to participate, unlike in a lot of traditional auctions. All you need to do is to register an account at one of your preferred auction house’s websites and then place your bids!
However, it is important to note that in most auction houses, you cannot cancel your bids once you have entered them. It is not recommended that you instantly place a high bid for something you really want. As mentioned earlier, the online auction environment is not fast-paced. It would be better for you to take your time and calmly bid on what you want.
There are many websites that facilitate online auctions in the Philippines. While some of them are more trustworthy than others, most of these websites have strict guidelines when it comes to participating in an auction. Some websites have a way of integrating the benefits that are usually reserved or traditional auctions. One of which is the viewing of the physical item on sale by the buyer, though it is usually upon request of the buyer.
Benefits of Buying and Selling Through Online Auctions
With everything that has been said about how good of an option participating in an online auction is, the benefits of doing so should be obvious for everyone reading. Online auctions in the Philippines and all around the world is getting more popular by the day.
Convenience is something that is being sought after all over the world. In the Philippines, online auctions are making it easier for sellers to auction their products, and buyers to find what they’re looking for. Sellers need only to register their merchandise and provide the asking price and let the website do the displaying, while buyers need only to browse and select what product they want. Buying and selling have become as easy as clicking a button.
Another good benefit of online auctions is that a site that focuses on online auctions would always be open. However, most online auction websites give your item a time limit so as to give chance to other products for sale. The same goes for buyers which can look and bid for what they want at any time.
One of the most endearing advantages the online auctions have is that everything is how transparent the auction can be to both its buyers and seller. In most auction sites, both the seller and the people who have bid on an item will be notified when a higher bid is placed.
Lastly, when you browse through an online auction, you will quickly realize how large of a selection and demographic there really is. A buyer will almost always find what they’re looking for, and sellers will surely find a buyer for almost anything of value that they sell. The internet has made it so that the world is connected like never before, taking advantage of this, online auctions, particularly in the Philippines has grown immensely throughout the years.
HMR Online Auctions
With one of the biggest and most diverse online auctions in the Philippines, HMR Auctions, the largest, full-service auction, buy-and-sell, and valuation company is the best company to help you get started with experiencing online auctions.
HMR Auctions ensures that they auction out quality products that are sure to satisfy your every need. Their simple website for online auctions makes it easy for you to browse about and search for a suitable auction you want to bid on.
As a company that has been dealing with comprehensive auctions and valuations, you will surely be provided with the utmost quality service in everything that is related to online auctions.
To learn more about this service, click here!