An auction is the buying and selling of property by placing and accepting bids. This transfer of ownership through auctions occurs in many area including agricultural commodities, real estate, used goods and the stock market. There are primarily five types of auctions utilized for on-line auction sites. The seller starts the auction with a minimum bid.
Bidding occurs and the highest bidder wins the item.
Contact between seller and buyer occurs via e-mail. The seller sets a reserve price for the auction. This price is the lowest price the seller is willing to sell a particular item. This price is not revealed to bidders until the reserve price is met during the bidding. This type of auction is not available on all auction sites.