Knowledge Center

Auction

Auctions are a method of sales, where the supplier, or auction house, receive lots from supplier, or seller, who will then sell the lot for a fee. The lots are then offered for sale in a time limited auction.

An auction process may result in

  1. Lot sold to the highest bidder.

  2. Lot sold for estimated sales price (aftersale).

  3. Lot is not sold.

There are several types of auctions, with the two main ones being sale on location and online auctions. The similarities are that the lots are sold after bidding, where the bids may come before or during the auction.

Most auction sales go directly to the customer with the highest bid, but sometimes to the bidder using a "Buy now" option in the aftersale, for the given price connected to this option. If the lot is not sold during the auction it may be returned to the supplier, or moved to another auction.

Tasks involved in this process

  1. Preparing an auction

    The auction parties needs to be defined, with sellers and bidders (buyers).

  2. Handling lots

    All lots to be sold during the auction needs to be registered, and a receipt sent to the supplier.

  3. Scheduling an auction

    The duration of the auction needs to be set in accordance with the type of auction.

  4. Conduct the auction

    All potential bidders will receive a bidding number (except online auctions), bids must be registered and the lots may be sold to the highest bidder.

  5. Finishing an auction

    In the end phase of an auction the auction house needs to decide what to do with the unsold lots.

  6. Follow up the auction

    The auction is finished and customers are billed and suppliers are paid. Follow up with reports and statistics.