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Article: Networking - Online auctions offer firms huge cost savings. Electronic auctions have improved purchasing for many organisations by reducing prices and making procurement more open. Martin Fustes reports on current best practice.
- Article from:
- Computing
- Article date:
- November 3, 2005
CopyrightCOPYRIGHT 2005 Incisive Media, published with the permission of Incisive Media. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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Around the turn of the millennium, businesses were beginning to move transactions online and electronic auction sites were gaining considerable attention.
Unlike consumer-focused auction sites, such as eBay, where buyers push up prices, hosted auctions enabled suppliers to compete against each other to drive down prices and win contracts.
But as the internet became more popular these electronic buying sites were hyped beyond realistic expectation. And when the downturn hit, much of scepticism concerning electronic auctions emerged.
It has been a long, slow road back to acceptance. But with a better understanding and more realistic expectations, ...