Q1biii. What are the benefits to of an online auction sale to a buyer, a seller and E-bay owners?

Answer:

The Benefits of the online auction sale like ebay are

* Worldwide Participation
* Reduction in overhead cost though savings on accounting / security function on site
* Strict Control of potential buyers on site
* Assets situated in a number of different geographical locations can all be included in the same online auction (cjm, 2005)

Also, the online auction sale is one of the e-commerce models, that is, the online auction sale can be B2C or C2C. The Study Guide (2009) shows that the benefits of E-commerce are...

* Efficiency gains
* User friendly
* Run for 7 x 24 basis real time ordering
* Globalisation
* Provide flexibility
* Reduction in processing costs
* Speed & Market freedom ... etc

In other words, the buyer and the seller within the online auction community can respectively buy and sell things, regardless of time and location. The transaction can be completed in a few minutes anyplace and anytime through Internet. The online auction sale provides an extremely convenient way to buy or sell things.

As mentioned above, the online auction sale, like ebay, provide B2C or C2C services to buyers and seller so that things can be sold or bought internationally with 7 x 24 basis. The website ebay is the service provider for such service and ebay charges the seller or buyer for each transaction. The more transactions has been completed, the more profits of the ebay owners will be gained. (Some advestisment of products will also be charged).

Reference:

1. cjm (2005). "What is an Online Auction sale". CJM Asset Management, Retrieved Mar-14th-2009 from URL - http://www.cjmasset.com/about_us/what_is_online_auction.html
2. The Study Guide (2009). "Topic 1: E-commerce, distributed applications and the Internet", E-Systems Infrastructure Development, (p.3)