Online Auctions are unmistakably among the hottest e-Sourcing technologies on the Internet business today. But what exactly is an online auction anyway and what are its benefits? According to The Pocket Oxford Dictionary, fourth edition (1942), an auction is a "public sale in which articles are sold to the highest bidder." And if done on Internet it is online auction.

Online auctions create a competitive advantage because they make it relatively simple for Procurement managers to negotiate on all corporate purchases and create better deals.

Let us see some common myths surrounding online auctions:

MYTH #1: Only very familiar, particular or consistent items can be auctioned:

The myth came into being because no one understood how to measure criteria other than price. Total cost auctions take price and no-price factors, such as delivery time or customer service, into account, and they allow a customer to weight each factor accordingly. This is only a myth because when someone with sourcing expertise takes a creative approach to defining or breaking down the item in question, that item or its components can generally be auctioned.

MYTH # 2: Auctions are only effective when there is a level playing field:

This is false since a level playing field simply doesn't exist. And, not all suppliers are alike. Face-to-face negotiations have long proven this fact. Procurement managers can now normalize for differences (e.g., customer service, warranty terms, delivery cost, etc.) using Web-based technology. In effect, these technologies measure total cost allow customers to compare apples-to-oranges.

MYTH #3: Only Internet-savvy suppliers can participate in an online auction:

Today, the majority of legitimate suppliers have access to computers. The myth that only internet-savvy suppliers can participate in an online auction is wrong. In order to participate in an Internet based online auction, the suppliers merely need to be able to log on to the Internet, log in to a web site, and log their bids. It's just very simple. Suppliers don't have to know how to navigate the World Wide Web or use any sophisticated search engines to participate.

MYTH #4: Maximum benefits could be derived only if large number of suppliers participate:

For any online auction, competition is a must and you must create a competitive environment, no matter if the suppliers is 4 or 400. Internet auctions put the business "up for bid." Incumbents are wise to take notice. Once existing suppliers believe that the buyer really will change where he takes his business, a competitive environment is created. Thus concrete results for online auctions occur irrelevant to number of suppliers.

MYTH #5: Only products are auctioned?

Not true - in fact, services are also auctioned. Services such as Telemarketing services, Cellular phone services, Security services, and temporary labor services are all good examples. For example, a particular auction site held an auction for telemarketing services that resulted in an 18% cost reduction. The auction involved over 60 suppliers and more than 700 bids. The study shows that apart from products, services can also be auctioned.

MYTH # 6:Auctions are carried out only once in a year:

Event online auctions are generally used for categories of goods and services that require a long-term contract (say one year). These will achieve better results if auctioned year (or less). For example, a buyer may auction off the purchase of 10,000 PCs over a two-year period.

It is important for all to expand their concept of what can be auctioned, as long as the value of each item is 'elastic' enough to preclude fixed pricing. Once they have done that, the possibilities are almost endless.

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If you spend any amount of time in rural America you will likely see signs that indicate an auction is planned. In some cases these auctions are the sign that hard luck finally met the banker and neither were thrilled at the meeting. A family could be displaced from a home or farm, a businessman could be liquidating assets to satisfy creditors or the passing of someone in the community has rendered their property and goods to an estate auction.

An auction never really seems to be good news for the person who is forced to initiate the sale.

For the bargain hunter an auction can be good news. Items can be purchased at a significant discount and one of a kind items are common in auctions.

Many individuals have been able to drive away in a car paying very little following the repossession of the vehicle by the bank. Property can be obtained in a tax auction for pennies on the dollar as county governments work to simply regain property tax losses.

Auctions can often be the visible demonstration that life has not dealt kindly with someone.

On the other hand there are auctions of highly valued items that are designed specifically to obtain the best price. Major auction houses in places like New York and London can aid individuals in selling rare items at prices much higher than they would expect from other means.

In this second scenario it is the exclusive nature of the items that entices collectors and museums to consider the purchase of items not available in most cases.

For an online business the idea of online auctions can mean both additional sales as well as marketing ability.

Some businesses may be in the process of liquidating their inventory as they seek to close a business, but many online businesses are viewing auctions as a means of promoting their business.

When Beanie Baby series were discontinued some online businesses held onto the products that had been discontinued. Several months later when most supplies of the miniature stuffed animals were sold out these businesses brought their ‘held back’ supply to online auctions and these items sold for many times what the original asking price (and their original investment) had been.

In this case collectors who had been seeking to complete collections were more than willing to pay the extra price for the items.

This scenario is a great visual on what it can be like to use auctions for both marketing as well as wealth management.

The fees charged by online auctions can be a small price to pay for an effective means to market products to potential clients who may have never heard about your business.

Online auctions remain one of the most brilliant ideas in online marketing. It caters to both the real and felt needs of consumers who may be looking for either a hard to find item or something that reminds them of their past. It is one of the most effective ways to reach the most motivated buyers and give them full access to your business website in the process.

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Are you a Chicago resident who is looking to buy a used car? If you are, you may want to think about buying a used car from a Chicago auction. When it comes to choosing a Chicago auction to attend, you will find that you have a number of different choices.

A common type of auction that many people attend, even when looking for a used car, is an auction where a large number of items are for sale, including used cars. These types of auctions are not always done on a scheduled basis though. Many times, the items being auctioned off are part of an estate or a business closing. Yes, you may be able to find an auction like this in the Chicago area where a used car or two is present, but you may want to look at auctions that are referred to as used car auctions.

Used car auctions are auctions that specialize solely in the auctioning of used vehicles. What is nice about used car auctions is that well-known auction houses or even auto repair companies often host them. Also, you are often able to get access to a large number of vehicles. Depending on the used car auction that you choose to attend, there may be as many as fifty used cars present. Used car auctions, unlike many traditional estate auctions, are often held on a scheduled, predetermined basis.

If you are interested in attending a used car auction, you will find that you have number of different used car auctions to attend, just in or around the Chicago area. For that reason, you may want to take the time to choose which used car auction or auctions that you want to attend. To save yourself time and possible even money, you will want to look at used car auctions that give you the opportunity to inspect all vehicles before placing a bid. It is also advised that you try to attend public used car auctions, as you do not need to have a dealer’s license or other documentation to bid on a vehicle. There are also used car auctions where you are required to pay an admission free, but many allow free entrance.

In addition to attending a used car auction that is hosted by an auction house or an auto repair company, you may also be able to find auctions in and around the Chicago area that are sometimes referred to as police auctions. Police auctions vary from auction to auction, but they do typically have a number of used cars available for bidding; however, the number usually is not as high as it is with the used car auctions outlined above. Often times, a police auction involves the auctioning of old police cars, as well as cars and other vehicles that may have been impounded or confiscated during a criminal investigation.

In addition to used car auctions that you can attend, you may also be able to find a number of used car auctions online. Online used car auctions are starting to increase in popularity. When it comes to online used car auctions, it is common for a number of individual auctions to be hosted on an online bidding website. While these bidding sites may be a great way to get a used car, you need to keep the current location of the cars in mind. For instance, if you live in or around the Chicago area, it may be costly for you to buy a car and transport it from New York.

The other type of online used car auctions that you may be able to find are ones that are hosted by auction houses or even auto repair companies. Instead of having a live auction, there are some individuals and companies who are now choosing to do online used car auctions instead and some are even deciding to do both. The only downside is that you may not get to inspect the used cars before hand.

As you can see, from outlined above, it is possible to buy a used car from a number of different auctions. While you may not necessarily see the same success, many used car auction buyers have had success with live used car auctions. If you are interested in attending a live used car auction, you may want to examine the auctions hosted by North Shore Auto Auction.

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