Auctions are one of the oldest kinds of the market with earliest recorded auction happening in the 500 BCE. The numismatic auctions sell items by offering t for bid, accepting the bids, as well as selling an item to highest bidder. The auctions start with the minimum cost and go till bidding ends without any further bids where highest bidder will be obligated to pay out for an item at that particular price. There are some auctions that have the reserve price, minimum price that seller will accept for an item. Suppose the reserve cost isn’t met, seller will withdraw their item without even selling the greysheet coin it.
Is there any change?
Internet auctions have completely changed this process just by adding the time limit on this sale of single lot. Instead wait for a last bidder like with the live auction, highest bidder at a time of an end of Internet auction purchases an item at the highest bid. Whenever auctions started, the participants need to be there or send their agent to bid on a particular item. Since technologies have changed, nature of bidding also has changed. This first change was introduction of Postal Service, which introduced bidding via mail. Bids can be sent via mail or firms provide auction only by mail known as mail bid sales. The telephones provided people to attend the auction from very far away just by communicating the bid through representative of an auction company. Some can also contact the auction company & leave the proxy bid for any specific auctions. This invention of the facsimile technologies quickly sent the proxy bids all along with various other verification details for people who aren’t and infrequent customers of an auction company.
Buying & selling through auction needs payment to an auction company to sell the item. The seller fees are the percentage or fixed price of a final price of an item sold, called as price realized. If item sells, seller will be paid its final price less than the seller fees. Buyer pays the buyer’s fee as the percentage of price realized with the advertised minimum.