How information Systems improve Online Auctions 

One disadvantage that some people face when using online auctions if fraud, this comes about by not being able to see and evaluate the item in person. Online reputation systems help to prevent fraudulent auctions on the site. The systems help improve customer confidence when purchasing an item online. Also by using the data from reputation systems, companies can better prepare for and prevent fraud in an online auction website. Server-side Activity-based Caching is used to improve the auction systems by tracking and storing data about actions such as number of bids placed or the amount of time remaining until an auction is closed. This is to assist in the specific workloads and user behavior characteristics of online auction sites. When businesses set up online auctions policies and procedures can be broken. Information systems can be used to ensure policies and procedures are followed online such as a code of ethics. There are models being proposed that would help online auction sites support, monitor and enforce ethical conduct in an online environment.  

Disadvantages of Online Auctions 

You would think that businesses wouldn’t be able to find any cons when it comes to online auctions right? You would think that online auctions would be a solid alternative to conducting business right? Well the truth is there are many cons when it comes to businesses using online auctions. The fees associated with buying and selling items on online auctions are obviously a disadvantage to using online auctions. Businesses have to make a profit to stay in business right? So companies are forced to charge a little more than what they would like in order to remain profitable due to the fees of posting items. That’s just one of the many different disadvantages of using online auctions. Another major disadvantage of online auctions is the lack of autonomy or customization of the listings; again the online auction site handicaps the seller’s ability to fully advertise their products. Online auctions aren’t the new thing anymore, and have lost their edge or “it” factor. It’s best to do your research before conducting business on online auctions now-a-days, you never know where you can make or save the most money. Which is why businesses are using information systems to better online auctions for them and the customer.

Advantages of online Auctions

Of course if there are disadvantages there should be some advantages. One would be that businesses who use online auctions do not have to quit their traditional sales method which could lead to having extra sales so their surplus inventory would become smaller. Also when using online auctions businesses can set the minimum bid so that an item can be sold covering its cost.Using an online auction small businesses can cut down on distribution costs. Businesses can use online auctions to be more global or get international markets they otherwise would not have. New businesses can establish a market price through online auctions by figuring out what people are willing to pay for the item they offer.

Sources

 http://dl.acm.org/citation.cfm?id=1278063

http://link.springer.com/article/10.1007%2Fs11280-006-0011-8

http://www.google.com/url?sa=t&rct=j&q=&esrc=s&source=web&cd=20&ved=0CFYQFjAJOAo&url=http%3A%2F%2Fwww.irma-international.org%2Fviewtitle%2F5118%2F&ei=4Uo0VMi6KsunyATsyIHwDw&usg=AFQjCNG4JUGRgW6TKbkVRhlZ6tjr2RELzQ&sig2=xfgeFSTG7Nx-u8bvleHe1Q&bvm=bv.76943099,d.aWw

http://techzonics.com/online-auction-site-blues.htm

http://www.referenceforbusiness.com/small/Mail-Op/Online-Auctions.html