An online auction is a service in which auction farmer or participants buyer or bid for agro products via the Internet. Virtual auctions facilitate online activities between buyers and farmer in different locations or geographical areas.
Online auctions are a widely accepted agricultural model for the following reasons:
- No fixed time constraint
- Flexible time limits
- No geographical limitations
- Offers highly intensive social interactions
- Includes a large numbers of farmer and buyer, which encourages a high-volume online business
Online auctions include business to consumer (B2C), auction.
This type of auction is where many types of Dealer bid for a single farmer agro products.
Whereas auction is a process where buying and selling of goods is up for a bid. Usually an auction is held in order to get the best value of the goods to be sold. Many times marketers put up their goods up for an auction in order to get the best value for their sales. The reason for putting up commodities for an auction is to get the highest price.
In the language of marketing auction is also a sale where the price of a commodity is neither pre decided nor is it set after negotiation. The price is with the help of a competitive and open bidding.
The motive for an auction is to call for the highest price for a good. It is said to be successful when the auctioneer receives the highest bid to sell his goods to the bidder. So receiving the highest bid for a agro product makes the auction successful.