Directorate of distance education

Evaluation of bids and closing the auction
: This step implements 
the auction closing rules and notifies the winners and losers of the 
auction.
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Trade settlement
: This final step handles the payment to the 
seller, the transfer of goods to the buyer, and if the seller is not 
the auctioneer, payment of fees to the auctioneer and other agents 
(appraisers, consignment agents, etc.

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Online Auctions
Online auctions can be fun and a great way to grab a bargain, but 
you need to be careful - not all auctions are the same and there are risks 
involved. Before you join or register to participate in an online auction, 
make sure you know what sort of auction you are looking at and what rights 
and responsibilities you have. You should also take steps to minimise the 
risks of something going wrong. 
Types of Online Auctions
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Marketplace online auctions:
Online marketplace auctions are 
now a popular way of buying, with a well known example being 
eBay. In these ‘virtual’ markets, a business sets up the website and 
provides a set of rules and guidelines, but it is mostly left to the 
individual buyers and sellers to deal directly with each other and 
make the market work. It is important to note that the business 

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running the website is not directly involved in the auction process 
and is not an agent for the seller.
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Traditional auctions: 
Traditional auctions have been around a 
long time - just think of an auctioneer banging down the hammer 
with a cry of ‘sold’ and pointing to the highest bidder. In this 
case, the auctioneer has acted on behalf of the seller of the goods. 
Traditional online auctions operate in the same way, but instead of 
interested buyers gathering together in person, an online auction 
house uses a website to create a virtual auction.