Auction websites have been around over the years and have gained popularity giving users the opportunity to use a platform for buying and selling different products based on a bidding system. Others have seen the idea to build your own auction website as a good strategy, especially when starting a business due to its ability to gain a huge following.
Statistics show that 12% of users with an age of 18 to 29 years, and 11% of users ages 30 to 59 years participate in daily auctions.
In 2017 IBISWorld noted that the annual revenue of the online auction business is estimated at $394 billion and is going to increase at 13.3% annually.
In 2020, the Industry Statistics and Market Research USA forecasts online auctions will grow in the next 5 years. This goes to show that auction websites have been a huge part of our lives whether it is on the buyer or seller side.
How to build an online auction site: your step by step guide
Before starting directly with the development process, take note of every detail with regards to how the future auction will work and who exactly will be the target audience of the business. We have already talked about the possible business model and monetization scheme above, now we must go into detail about the important points that need to be considered before moving to the development stage proper.
Step 1: Define the type of your future auction
Before anything else, identifying the most suitable type of auction is important as this will set the tone of the whole process.
The English Auction – This is known to be the most common format of auctions wherein the bid starts at a reserve price and the bids take place in ascending order. The goods are considered sold to the highest bidder.
The Dutch Auction – Usually, this type of auction is aided with a button that stops an automatic clock or when a buyer claims an item by saying “mine”. The bidding of items starts especially at an incredibly high price and is progressively lowered as the bidding goes. The first winner takes the goods and pays at a higher price, and succeeding winners pay for less.
The Vickrey Auction – Named after the 1996 Nobel Prize in Economics winner, William Vickrey, this type of auction is when the goods will be given to the highest bidder but will only have to pay the second-highest bidder price. For instance, there are three bids $100, $80, $50—the goods are auctioned to the bidder who proposed $100 but will only have to pay $80.
Step 2: Define the necessary user roles
The timing and price of the auction web development process depend on different people. This is why it is important to identify the necessary user roles you would want to be part of your online auction. Aside from that, the platform you will be creating is meant to make sure that the relationship between the buyers, sellers, and administrators are harmonious. Hence, the site must support these roles:
- The Seller – creating an account, opening an account, using payment services, being able to monitor the progress of the auction, accept payments from different people, view and review the sales statistics and ratings are some of the most important things a seller must be able to do on the auction platform.
- The Buyer – buyers or participants must be able to create an account, open an account and use payment services, view different listings, search specific products, make bids, make payments for different transactions, leave review or feedback of sellers, view statistics and ratings of both the buyer and seller.
- The Administrator – the administrator must be able to moderate the auctions, check bids, user profiles, and content of the website.
Step 3: Define the feature list of your future online website
Feature lists and functions for online auction websites are vast and a lot can be applied. However, here are the key roles and its basic functions that you should know.
Step 4: Define software or tech stack for your auction
One of the most important steps in creating an auction is deciding between Content Management System or Custom Website Development. Like any other, there will be advantages and disadvantages to both. That is why it is important to know the challenges and victories you will face when you decide which to choose.
Step 5: Start the auction web development process
It may be best to start with a Minimum Viable Product (MVP) development as it already has sufficient features that though minimal, is capable of meeting certain needs of users.
Read the full article via the link: https://code-care.com/blog/how-to-build-an-auction-website/
