Online auctions are technically the most difficult category of markets, as in addition to the standard functionality of an online store, you must also implement a system of accounts, receipt and storage of payments, as well as a system of acceptance and registration of auctions.
This is a rather complicated technical mechanism, which must take into account the bids of all participants and timely return money from irrelevant bids to users' balances.
Features of online auction development
Firstly, you must consider all features of online market development because auctions will differ between them only through the sales model. On the platform, the following should be elaborated in detail:
- Navigation on the site and a comfortable form for searching and ordering products.
- Personal and payment data security, as well as of money from users' balance.
- Convenient ways to replace and withdraw money from the personal account.
- Marketing and attracting new sellers and buyers to work.
More specifically, talking about online auctions, the development of a bidding mechanism will depend on the selected type of auction.
- Direct auction. The classic bidding type, in which the highest bid wins.
- Reverse auction. Sellers are gradually lowering the price until some of the buyers agree to it.
- Reserve price auction. In such auctions, the seller may set a price below which he disagrees to sell. And the auction will be recognized as valid only if the offered price is higher than the reserve price.
Auctions can also have a blitz price (cost of instantaneous redemption). They can be opened and closed, as well as with other features.
The platform success depends also on the category of selected products. Not all the goods will be requested in a tender format. These must be unique or very rare things, which are not available in the public sale.
Once the product category and auction format is defined, you can move to the creation of a Minimum Viable Product (MVP). And start attracting real users to the platform. The key cost of the auction platform consists of the number of active users. Sellers will go where they are more likely to sell the product at the highest price. And in the well-known auctions with a large public, that probability is higher.
How to monetize an online auction?
Like the classic auctions, online platforms win a fee for the successful sale of a lot. Some platforms also offer payment services of an evaluator before placing or adding to the auction.
There are even platforms that charge the buyer for the right to bid. But, in this case the product must be truly unique and at the same time requested.
Advanced web site development skills are not enough to implement such a project. It's a complex web service. This requires the complex work of a team that has experience in developing online auctions.
And we have such an experience. We have participated in the launch of a large European online art auction VIL, with the possibility of loading automatically lots and a lot of useful options for users (https://www.metawebart.com/en/project/very-important-lot).
Get a free consultation from our specialists. We will suggest how to implement correctly your online auction idea and help you develop the project. For free consultation, leave a request in the feedback form on our site.