Usually, auction sites act as a forum through which Internet users can log on and assume the role of either bidder or seller. As a seller, you are able to post an item you wish to sell, the minimum price you require to sell your 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. Some sites allow you to submit a maxmium bidding price and will continue bidding for you.
The reverse auction model allows the buyer to set a price as sellers compete to match or even beat it. One example of reverse auction site is www.Liquidprice.com which processes your auction within two days. A faster option is available when the buyer sets a reserve price. A reserve price is the lowest price that the seller will accept in any type of auction. Sellers can set the reserve price higher than the minimum bid. If no bid meets the reserve price, the auction is unsuccessful. If a seller sets a reserve price at Liquidprice.com, the seller will receive a series of bids within six hours of their initial post. However, if a successful bid is made, the buyer and seller must commit.
Although auction sites usually require a commission 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 bidder are notified, and the method of payment and the cost of delivery is then worked out between the two parties.