In our last post we discussed about growing popularity of auction formats worldwide, we showcased the estimated size of 300$ Billions (approx). We also discussed of auction being used online in B2B & B2C formats as well.
In today’s post we dig deeper in understanding the type of popular auction formats. Before 
starting an online auction website it is important to get understanding of the auction format this enables the clarity on the auction format website you would like to get developed. If you just want to start with generic auction website we have ready made auction software is available – script has been developed in PHP.
Following are most popular variety of auction types
English Auction
Most widely used auction type, It works on ascending price & is completely open. It is most widely used auction type in online auction format.Here the system automatically selects the winner to the highest bidder on per-decided auction completion date.English auction is used from real estate to gadgets to books , second hand goods.
Reserve Price Auction
This auction works similar to English Auction but here that is advantage for the seller, seller can set a reserve price, reserve price if not met the winner bidder is not declared, so the seller is has protection of not selling at below price.
Dutch Auction
It is not widely used auction format & it is descending price auction.Here the seller price starts with highest price & settles at a price where buyers is ready to pay the price. This auction is popular in Netherlands for cut flower
sales.
Sealed Price Auction
It is most used auction type in case of government tenders or procurement. Here sealed bid are invited from sellers & most competent bid is selected after scrutiny of the bid. Here bidder has only one chance to submit bid and can not adjust the bid.
Penny Auction
It is most notorious auction type, most actively used by business. Here bidder buys the bids at a price & based on the model of website winner is selected. There are huge chance of fraud in this auction so certain governments have banned the same as well.
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