E-auction
Electronic auctions (on the Internet) offer
an electronic implementation of the bidding
mechanism also known from traditional
auctions. This can be accompanied
by multimedia presentation of the goods.
Usually they are not restricted to this single
function. They may also offer integration
of the bidding process with contracting,
payments and delivery. The sources
of income for the auction provider are in
selling the technology platform, in transaction fees, and in advertising. Benefits
for suppliers and buyers are increased efficiency
and time-savings, no need for
physical transport until the deal has been
established, global sourcing. Because of
the lower cost it becomes feasible to also
offer for sale small quantities of low value,
e.g. surplus goods. Sources of income for
suppliers are in reduced surplus stock,
better utilisation of production capacity,
lower sales overheads. Sources of income
for buyers are in reduced purchasing overhead
cost and reduced cost of goods or
services purchased. Examples of electronic
auctions are the ESPRIT project Infomar
(for ESPRIT and ACTS projects see www.
ispo.cec.be/ecommerce/ecomproj.htm) and
FastParts (www.fastparts.com ).