1. E-Auctions

2. Objectives types of e-auctions and list their characteristics.
- forward and reverse auctions.
Benefits and limitations of e-auctions.

3. Fundamentals of Dynamic Pricing and E-Auctions
Market mechanism by which buyers make bids and sellers place offers; characterized by the competitive and dynamic nature by which the final price is reached
electronic auctions (e-auctions)
Auctions conducted online
dynamic pricing
Fluctuating prices that are determined based on supply
and demand relationships at any given time

4. Types of
Dynamic Pricing and E-Auctions

5. Fundamentals of Dynamic Pricing and E-Auctions
One Buyer, One Seller
Each party can negotiate / bargain
Result price depends upon
Bargain power
Supply & demand of item
One Seller, Many Potential Buyers
forward auction
An auction in which a seller offers a product to many potential buyers
sealed-bid auction
Auction in which each bidder bids only once; a silent auction, in which bidders do not know who is placing bids or what the bid prices are

6. Fundamentals of Dynamic Pricing and E-Auctions
One Buyer, Many Potential Sellers
reverse auction
Auction in which the buyer places an item for bid (tender) on a request for quote (RFQ) system; potential suppliers bid on the job, with bid price reducing sequentially, and the lowest bid wins; used mainly in B2B and G2B e-commerce
B2B reverse auctions
C2C reverse auctions
“name-your-own-price” model
Auction model in which would-be buyers specify the price (and other terms) they are willing to pay to any willing seller;

7. 1 Room Where are you going? Check-in Check-out Rooms Bid Now »

8. The “Name-Your-Own-Price” C2B Model
One of the most interesting e-commerce models is the
“name-your-own-price” model
a C2B model pioneered by Priceline.com
This model enables consumers to achieve significant savings by naming their own price for goods and services
The concept is that of a C2B reverse auction, in which vendors bid on a job by submitting offers and the lowest- priced vendor or the one that meets the buyer’s requirements gets the job

9. Fundamentals of Dynamic Pricing and E-Auctions
Many Sellers, Many Buyers
Auction that takes place between sellers and buyers in one industry or for one commodity
Buyer and their bidding prices are matched with seller and their asking price based on the quantities on both sides and dynamic interaction between the buyer & seller.

10. E-Auction Process Register Bidding n‹›t 4icati‹›n Bidder report
poated !
Bidding n‹›t 4icati‹›n
Bidder report
Auction
Administrator

11. Benefits, Limitations, and Strategic Uses of E-Auctions
Benefits of E-Auctions
Benefits to sellers
Increased Revenues
Optional Price Setting
Removal of expensive intermediaries
Better Customer relationship
Lower transaction & administrative cost
Benefits to buyers
Opportunities to Find Unique Items and Collectibles
Lower prices
Convenience
Entertainment

12. Benefits, Limitations, and Strategic Uses of E-Auctions
Benefits to E-Auctioneers
Higher repeat purchases
A stickier Web site
Expansion of the auction business

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15. Benefits, Limitations, and Strategic Uses of E-Auctions
Limitations of E-Auctions
Possibility of fraud
Limited participation
Auction software
Long cycle time
Monitoring time
Order fulfillment costs

16. E-Auction Fraud and Its Prevention
Types of E-Auction Fraud
bid shielding
Having phantom bidders bid at a very high price when an auction begins; they pull out at the last minute, and the real bidder who bid a much lower price wins
shilling
Placing fake bids on auction items to artificially jack up the bidding price
Fake photos & misleading descriptions
Selling reproductions as original
Failure to pay

17. E-Auction Fraud and Its Prevention
Protecting against E-Auction Fraud
User identity verification
Authentication service
Grading services
Feedback forum
Insurance policy
Escrow services
Nonpayment punishment

18. General Steps to Initiate Auction
Strategic steps
Which items (services) to auction
What type of auction to use
Whether to do the auction in-house or to use an auctioneer (and which one)
How long to run each auction
How to set the initial prices
How to accept a bid
What increments to allow in the bidding
What information to disclose to the participants