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If you are new to the world of online auctions, you will no doubt be baffled by the sheer number of different types of auctions there are, and how they all work. Perhaps one of the most unusual kinds of auction is a dutch auction. But what is a dutch auction exactly? And how does it benefit me when I'm shopping online? Well, over the next couple of minutes, we are going to take you through the concept of a dutch auction, and hopefully answer some of the most commonly asked questions around what are dutch auctions? Whereas a regular auction would start at a low price and work upwards until the auctioneer found the maximum level that any bidding party would be prepared to go to, a dutch auction works the other way around. Confused? Don't worry; it's actually a lot simpler than it sounds. During a dutch auction, the auctioneer will start at a much higher price than they expect to finally achieve for the sale of the item in the lot. So don't panic when you go to take part in your first dutch auction and the auctioneer starts at some ridiculously high price. This is completely normal practice, and is just how a dutch auction starts! The auctioneer will then work down in small increments, and continue working the price down until one of the interested parties accepts the current price and places a bid to buy the products in the lot for the current price stated by the auctioneer. The winning bidder is then liable for the price that was last announced by the auctioneer, and they have won the auction. A dutch auction is commonly found in situations where the seller is looking to achieve a quick sale. Since only one bid is needed in order for the auction to be completed and the goods to be sold, the auctioneer can always be assured of a quick and easy sale. Online shopping in this way is completely unique, and dutch auctions can provide a new and exciting way for consumers to purchase products online. The anticipation of the price dropping, combined with never knowing when the other interested parties are going to cave in and place their bid, makes for a shopping experience which is certain to keep you on the very edge of your seat. What's more, there are also some great deals to be had for the savvy shopper during these types of auctions. If all interested parties play the auction wisely and don't bid to early on, then the price of your goods will continue to fall - often to insanely cheap prices! Hopefully these last few minutes have been of some use in answering your initial questions of "what is a dutch auction"? Now that you know how these unique auctions work, all that remains is for you to get out there and give them a try. Check out a few dutch auctions next time you are shopping online, and see for yourself the huge numbers of fantastic deals that are available online. BidGrid online auctions are unique, It's always the lowest unique bid under £3 that wins. You can use the buy it now feature to enjoy risk free bidding. See how it works at bidgrid.co.uk
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