What is it?
Online auctions allow you to sell products or services through the internet. The world's most popular online auction site is eBay, where members can list their own items for sale over a set period of days, and other users can buy them outright or place bids, depending on the type of auction.
How does it work?
Whereas auctions are generally held in person with an auctioneer acting on behalf of the seller, an online auction is run by the person selling their products or services within an online auction site, such as eBay or TradeMe (in New Zealand). Online auction sites have features that allow users to easily search, list, sell, watch and buy.
Why is it useful?
Depending on what you are selling, an online auction is useful to help you sell directly to potentially millions of people, or at least reach a large number of potential buyers in your own suburb or city.
What do you need to keep in mind about your child and online auctions?
Helping your child to sell old gear, toys and other items in an online auction could be one way of making pocket money, as well as learning about business concepts, such as marketing, customer service and managing time and money.
Some commercial traders also operate so-called online auctions to clear excess stock.