E-Bay is all the rage these days in Internet shopping. Instead of going to a mall or a store or even clicking on to a traditional dot-com retailer, millions are flocking to internet-based auctions such as eBay and Yahoo! Auctions. At these sites, bidders can search through tons of items, from computers, to clothing and video games. There is something for everyone here. Still there are concerns for both consumers and suppliers. In an environment where the relationship must be mutually fulfilling, there is concern that each group may be trying to get the best of each other. Read more.

Concerns for Auction Suppliers

One group specifically affected by internet based auctioning is suppliers. In an article for Electronics Supply and Manufacturing, writer Spencer Chin discusses the impact that web auctions have had on the suppliers. Chin argues that the continuation of a good “supplier-consumer” relationship is determined by the success of both groups. What is beginning to happen on the internet auction scene is that consumers are beginning to expect good prices, prices that are better than they would get in a store. While this may not matter to the twenty-five year old finally parting with his Super Nintendo, those suppliers that wish to make a living using eBay and other auction tools may be in a pickle and in for some heavy competition from other suppliers and retail businesses.

Concerns for Auction Consumers

While suppliers have room to worry, so do auction consumers. Many things can go wrong, mostly issues concerning the goods. Suppliers may not send the advertised goods or could send something that is significantly of lesser value. They may take their time with sending what you have won or they may not be completely truthful about the product. The first thing you need to understand is that auction does not automatically equate to cheaper. Bidding wars encourage competition and may cause individuals to go well beyond their maximum price. Also, online bidders are advised to check the supplier’s background. Check their feedback ratings and make sure that they have sent items appropriately to other site users.