As online retail shopping increases, consumers will use online auctions to search for goods for convenience and obtain preliminary data about the prices ,demand, and description of items. The online auction format allows the consumer to reduce search cost when searching for the items in comparison to the traditional format of visiting stores. If the consumer determines that they can obtain a better deal on the online with the same quality, they will revisit auctions site bid on the product. Unlike traditional retail format, consumers have more control in setting the price of the item sold. However, compared to traditional retail format, online auctions have deterrence factors because of the bidding process.
Consumers have to postpone purchases until the actual bid is accepted or rejected.
They also have to wait for the product to arrive at their homes which may delay the instant gratification consumers receive when they initially purchase a product.