The Functioning of Online Auction Fundraisers

To understand the functioning of online auction fundraisers, it is necessary to compare it to that of traditional auctions that the world recently was used to.

In the auctions of the past, a venue and auctioneer had to be hired and the goods had to be physically transported to the hall to be displayed on tables. Additional staff had to be hired to help in sundry work. The scenario is different in online auction fundraisers. Specialized websites hold these events and offer fully-managed services. These include registration of the intended participants, conducting the bidding, declaring the winners, displaying photos of the items on the site, and providing payment gateways. 

Hence, an important benefit of online auction fundraisers is the cost factor. As compared to traditional auctions, the charges of holding online auctions are negligible. Moreover, the auction sites are often free and most charge very nominal fees for holding auctions, However, fundraisers have to pay third-party service fees like that charged by payment gateways.

Online auction fundraisers fetch higher sale prices than the usual auctions. There are two reasons for this.

First, as the auctions are held over the Internet, participants are not limited to specific geographical boundaries. Anybody from any corner of the globe can take part in these auctions. Therefore, with more attendees, the bidding is generally fierce and highly competitive, thereby pushing up the prices. This is a boon for the fundraisers as they are assured of high profitability.

Second, the items offered at online auction fundraisers are often scarce and precious commodities elsewhere in the world. Hence, bidding here too is highly competitive and auction organizers can be assured of higher selling prices for their items.        

 

How Do Online Auction Fundraisers Work

In this Internet-driven age, most daily activities are online, from shopping to listening to music, reading newspapers, and more. Not far behind are online auction fundraisers that are reaping the benefits of the online environment. This is more so as traditional auctions held in closed venues with people crammed together have been temporarily disallowed due to the Covid-19 restrictions of lockdowns and social distancing.

How do these online auction fundraisers work in comparison with their traditional counterparts?

The first point of difference is that there is no need to hire venues or an auctioneer as the online version is conducted by websites using specialized software for this purpose. The items for sale do not have to be transported anywhere as in physical auctions as the photographs of the items only are displayed on the website. Both these factors lead to substantial savings and add to the profits of the auction organizers.

Online auction fundraisers are fully-managed events with a minimum of preparatory work of the organizers. The websites register the participants for the auction, display the photographs on the site, often multiple ones for an item, conduct the bidding process, and at the end declare the winners. Payment gateways are offered on-site, making the running of the auction a smooth and seamless affair from the start to finish.

Another critical factor is that organizers do not have to make elaborate marketing efforts to make an auction a great success. Online auction fundraisers websites have embedded features that help in the promotion of the auction like running email campaigns and creating a buzz on various social media platforms.

Online auction fundraisers are therefore not only cost-effective but also very efficient too.