How is the progress of the E-auction business in Nigeria?

The Nigerian business terrain is going through a developing phase. Because of this, many businesses long appreciated abroad are only just starting to find their feet. One such business is the auction business. An auction is an event where buyers place bids on assets and goods. In today's world, the concept of the conventional auction has shifted to include online auctioning. The purpose of online auctioning, also known as E-auction, is to sell goods, just like in a regular auction, but over the internet. However, E-auction is a concept not understood by many in Nigeria. The developing nature of the economy has slowed its progress, and it still has a long way to go to become a household name.

What is an E-Auction?

An auction is a sales event where prospective buyers place bids on assets, goods, or services. An auction can be performed in two formats: the closed or the open format. It is prevalent among buyers because there is a strong belief that they will get a good deal in the buying and selling of assets. In Nigeria, the auction business and its online counterpart, the E-auction, is still a developing method of transacting the sales of goods and assets. An auction that is conducted over the internet is called an E-auction.

How do E-auctions work?

E-auctions work the same way as conventional auctions, only that it is conducted online. As stated previously, the format an auction can take is either closed or open. In the open format, bidders are aware of the bids that have been submitted. All interested buyers are aware of the competing bids amounts and will continue to bid until someone is declared the winner. The bid can also end when buyers drop out of the bidding.

On the other hand, bidders are not aware of the bids that are submitted in the closed format. In business transactions that include the sale of company assets, a company, or any like transaction, closed auctions are preferred. Interested parties will submit bids to the seller, who decides to whom the sale should be made.

Before the start of an auction, buyers are allowed a preview period. They use this period to examine the conditions of the items on sale. Once they have viewed the items, they have to register with the auctioneer. This registration requires the buyer's contact and identification details, and a bidder card is given to every registered buyer for identification purposes. It is up to the auctioneer, or the seller as the case may be, to open the bid at a reasonable price, and then the bidding starts. The bid ends when there are no more bids, and the buyer with the highest bid gets the item.

What are some types of E-auctions?

English Auction

It is the most popular auction type and is also known as the open outcry auction. Here, participants bid against each other with every subsequent bid higher than the previous one. As long as there is still a bid, the auction for the item continues. An art auction prefers this approach.

Dutch Auction

In this type of auction, the auctioneer sets a high asking price and lowers the bid until a buyer accepts the price or when the seller's reserve price is met. The goods are arranged based on the bid order, where the first highest bidder picks their items, followed by the second and the third, until the order has been exhausted. This type of auction is preferred for perishable goods and sometimes, for investment securities.

E-auction and its presence in Nigeria

An online auction is an auction held over the internet. It is similar in almost every way to the conventional method of holding an auction. Though it was not initially accepted, it has become more prevalent in present-day trading. It includes business to business auctions, business to consumer auctions, and consumer to consumer auctions.

The progress of the E-auction business in Nigeria has been somewhat slow. This is due to the deficiency in the economic growth of the country. However, businesses, like Ees Auction, have been springing up, hoping to bridge this gap. Ees Auction, the first of many such businesses, allows buying and selling of goods under an approved auctioning atmosphere. It is a scam-free, reliable, safe, and trustworthy platform to sell and buy assets. It is best to visit our website or follow us on our social media handles, like Instagram, @eesauction to put up assets for sale or buy a good.