Auction Site

OVERVIEW OF BUSINESS MODEL

Online auction sites are one of the fastest growing businesses on the Internet today. Almost everyone knows at least one person who has either bought or sold a product through an online auction service such as eBay or Yahoo! Setting up an auction Web site may seem easy at first glance. However, the popularity and success of online auctions has led to an explosion of these sites. This has resulted in stiff competition among auction sites.

You must find a niche market—for example, rare collectibles, baseball cards, celebrity memorabilia, or autographed items—to set yourself apart from the competition. If you decide to open an online auction site, you will be using a special computer program that places items up for auction on your Web site. People interested in the auctioned item place bids.

If you are using a good auction program, then your computer will keep track of these bids and will finally close the auction and notify the seller and the successful bidder. The bidder and seller must arrange for the shipping of the item privately. Your sources of income will be the commission earned from the sale of each item on your site or the fee charged to submit an article and banner advertising revenue. Some auction sites also include a membership fee for access to selling on the site.

SKILLS NEEDED