The popularity of auctions has long roots and is pervasive in trading culture in different markets and countries. The word “auction” originally implied a public auction of goods, securities, works of art and other objects, which is carried out according to predetermined auction rules.
Common to all auctions is the principle of competition between potential buyers. During the competition between buyers for the right to purchase goods, the auction winner is announced. The winner of the auction is the person who won the auction according to its rules. In this case, the item is purchased by the auction winner.
Reading: How to create a auction website
An auction website is used to automate real auction processes through an online platform where users can buy or sell their items. The most famous example of an auction website is eBay, which was launched in 1995.
The eBay website has grown into one of the most profitable businesses in the United States. eBay’s annual net sales in 2021 has reached the milestone of $10.42 billion.
Amazon, an e-commerce Website started in 1994 by American entrepreneur Jeff Bezos, has become another popular online auction site.
REASONS FOR THE EFFECTIVENESS OF THE BUSINESS MODEL OF AUCTIONS LIKE EBAY
- The absence of geographic barriers – Sellers and buyers can bid on eBay from anywhere in the world. All you need is access to the internet. This will increase the number of sellers or lots posted and the number of buyers who have placed bids.
- No time limit – You can Products offer 24/7. Lots, in turn, can be displayed for up to 30 days – plenty of time to browse, get to know, and buy.
- Simple Interface – The ease of use of eBay auction services is also attractive to sellers. In addition, any member can become a seller.
- Lots of features – Listing, credit card payment, delivery and other options are the core features you need when creating a Auction websites such as eBay must take this into account. The number of additional functions to be developed is almost unlimited.
- The absence of language barriers – Participation in auction trading is possible in different languages. Many countries have their own local eBay auction branches.
- A large number of buyers – Millions of buyers are attracted by a huge range of products to one relatively low price.
Due to the above facts, Amazon and eBay online auctions have become the most popular retail sites in the United States.
HOW TO CREATE AN AUCTION WEBSITE
Auction website development is a complicated process that involves a lot of crucial phases. Below is a detailed and coherent guide on how to create an auction website and be successful.
Step 1. Buy a domain name
You need to come up with an idea for a domain name for your website. Every website should have a domain name to be accessible to users on the internet. It usually consists of the name of a website so users can easily find it online.
Ideally, the domain name should be short and memorable so that users can easily associate it with something and remember it. Ebay.com is a great example of a perfectly chosen domain name.
Many online services and web hosting providers offer a way to find available domain names to choose from and buy, allowing users to find your online auction software on the web. Google Domains is one of the most popular services.
Here are a few tips to keep in mind when buying a domain name so you don’t fail:
- Choose top-level domain names (TLDs) like .com , .org , .net
- Check domain ratings with SEO tools like Ahrefs Website Authority Checker
- Check a domain name’s history with Wayback Machine, the largest internet archive
If you already own a domain, you can easily attach it to a new server, so you don’t have to buy a new one. Also, don’t forget to renew your domain name reservation to avoid losing it.
Step 2. Prepare for website development
To make online auction software hassle free and In order to eliminate possible bottlenecks, good preparation is advisable. If you don’t know how to create a bid website, we recommend preparing the following:
Product vision
You need to clearly understand what you want to achieve and create a product vision.It is a document that outlines the main goal of developing an online marketplace. Also, it should include the list of short- and long-term business goals you want to achieve. A clear product vision will help you develop a detailed roadmap for creating an auction website.
User roles
An online auction market can have many different users. The user types have access to different features depending on their goals. You need to define user roles and must-have features for each of them.
The primary user roles for an auction website are:
- Buyer – A person who uses a website to find new items and place bids . Buyers must be able to create an account, place bids, monitor bidding processes, communicate with sellers, find items, share reviews, etc.
- Seller – A Person who sells items using online auction software. Sellers must be able to create an account, add new products, edit item descriptions, monitor bids, receive payments, etc.
- Administrator – Administrators may have other permissions set by the primary admin user. You must be able to moderate auctions, delete user profiles, update content, check statistics, etc.
Feature List
Create a list of features the software developers need to develop. It helps them to properly select a tech stack and analyze the approximate scope of work.
The range of functions may depend on the needs and specifics of a particular company. For example, such platforms are popular and successfully implemented for car and motorcycle trading, collectibles, antiques, etc.
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Explore the core features to learn how to build an auction website that accommodates this Ability to bid in more detail online.
Feature Detail DescriptionAdd, delete and change listings These functions are necessary in order to be able to sell goods successfully. Each listing should also include features such as detailed properties, descriptions, photos, videos, and user reviews. Newsletter
This can be sending an e-mail message after the auction has ended and informing customers daily about new offers that interest them. To implement this feature, you need to remember about integration with email services and implementation of RSS.
Secure data storage This is one of the most important features. No web platform can be implemented today without security functions. You should think about secure transactions between users, storage of personal data, passwords, personal information, etc. Bidding There are a variety of auction types and bidding strategies for products. The most popular auctions are: English auctions, Dutch auctions, sealed first price auctions and reverse auctions. Payment Gateways Currently, web platforms use a significant number of payment systems. The most popular solutions are PayPal or Stripe integration. Messaging Being able to communicate between seller and buyer is just as important as communicating with support. Analytics For sellers who can potentially start promoting their business through your auction platform, getting the most comprehensive information about product views, purchases and conversions is essential.
Website Development Method
The two most commonly used methods for creating an auction website are:
- Ready-made solution – A pre-built website using basic functions. The owner has to install it and add content. Typically, ready-made solutions come with Content Management Systems (CMS) like WordPress.
- Custom built website – A unique website built from scratch. With the help of custom website development, you can get a website that meets all the requirements and is 100% customizable.
Let’s see the comparison of the two most popular approaches to website development for more details on how to build an online auction website.
Ready-made solution Custom Website DevelopmentScalability The ability to upscale a website is limited by a system. Developers can easily scale a custom auction website. Security Poor security due to the use of a large amount of third-party code. High level of security and low risk of loopholes. Functionality Limited set of features. In some cases, new features can be added by installing third-party plugins. The number of functions is not limited. Developers can extend the functionality of a website on request. Search Engine Optimization Poor search engine optimization because code is generated by a CMS. Great search engine optimization as developers can update the code. Price Low or Free. In most cases, users have to make recurring payments. One time payment. The cost of building an auction website is higher as the code is written from scratch and involves third-party integrations. Theme Pre-designed website.Typically, users are allowed to make minimal layout updates and add content. Bespoke website design. It can be easily upgraded to create a solution that meets all needs. Website loading speed Low or medium loading speed. A CMS generates new code every time a user updates a web page. Fast loading speed. Browsers access well-optimized code to load the content simultaneously.
Monetization Model
Before starting development, considering how an auction site will monetize is crucial. The most popular monetization models used when creating an auction website are:
- Seller Commission – Sellers are required to share a percentage of the money they make from deals.
- Listing Fees – Sellers must pay a fee to add new items to a site.
- Buyer Fees – Bidders must pay a commission from each transaction they make.
- Advertisements – No commissions and fees. The website owner makes money by showing ads to customers.
Choose the most appropriate monetization model to allow software developers to create an auction website with the required functionality. In some cases, different monetization models can be combined.
Integrations list
Most auction websites have integrations with third-party services. The main ones to consider are:
- Shipping – Calculate real-time delivery price and ship goods quickly. For example, FedEx and UPS, the largest shipping companies in the US, have API solutions to allow developers to integrate their services into an auction site.
- Social – Can integrate with social media facilitate the registration process. They can also be used to develop chat and commenting functionality.
- Payment Processing – Receive and make payments with third-party services hassle-free. PayPal, Stripe, and Braintree are the most popular payment processing integrations.
Technical Requirements
Precise technical requirements help developers choose the right technologies to build an auction website. Here is the checklist for the essential technical requirements.
- Load – The estimated number of users who will use a website. It helps developers create the right solution and choose a server.
- Website structure – The structure of pages and their hierarchy to understand how users will use a website .
- Wireframes – The approximate layout of elements on web pages.
- Browser and device support – A website should list this supported by browsers and devices, including smartphones, tablets, and laptops.
- Page Load Speed - The maximum and desired load speed of a page. This affects customer satisfaction and ranking.
- Legal Compliance – Any legal requirements that need to be met. For example, all websites operating in the European Union must comply with the General Data Protection Regulation (GDPR).
After sharing all the details with the developers, they estimate your project to provide the approximate cost of creating an auction website and the timeframe.
Step 3. Build a User Interface /UX Design
Website design development is a crucial stage that needs to be completed when creating an auction website. After the wireframes are prepared, the designers need to create the mockup of your website. You need to design a logo, choose the color scheme and place UI elements in a specific order.
In order to develop the right user experience design, experts must thoroughly analyze the business requirements. It will help them to come up with a well-thought-out UX design that helps to achieve business goals.
Step 4. Select Tech Stack
Share all collected documents and technical requirements Developers that they can offer a tech stack proposal. Software engineers who know how to build an auction website will research and offer the best technologies to achieve all goals.
There are many different technologies that can be used to build an auction website. Nowadays you don’t just have to create HTML code for online auctions along with CSS and JavaScript to develop the frontend. It’s also wise to consider several emerging technologies like BootStrap, especially the plethora of JavaScript frameworks like Vue.js, React.js, Angular.js, and others.
You’ll also need to develop a programming language for Choose your backend and define a database. You can use Java, C#, PHP, Python and even JavaScript (MEAN Stack). Before deciding on one of these languages, you need to review your requirements analysis documentation and consider which language can best meet your needs.
Step 5.Onboard Development Team
Whether you have an in-house team or hire a dedicated development team, you need to bring software engineers on board. The key activities that will help you prepare developers to work on your project are the following:
- Share product vision and requirements – Developers need to have clear business goals understand and technical requirements.
- Choose a development methodology – There are many methods that help to effectively manage a team of software engineers. Waterfall, Agile, Rapid Application Development, and Spiral are the most popular.
- Set up a task management tool – Project management software helps developers organize their work and keep all tasks manageable effectively. Also, you can monitor their performance. Jira is one of the most popular tools for assigning tasks and tracking their completion.
- Create a task backlog – Create a list of tasks that software developers need to complete when building an auction website . It is used to form sprint backlogs when applying the Agile methodology. Also, it will help you understand how to create an online auction website by breaking big tasks into smaller ones.
- Configure communication tools – To keep in touch with all team members, create a communication environment using tools like Slack.
- Set code quality standards – In order not to compromise on development quality, it is recommended to set code quality standards that all team members must follow.
Step 6 Develop MVP
Begin the auction website development process by creating all the functionality defined in the preparation phase. It is recommended to develop a Minimal Viable Product (MVP) first. It will help you launch your website faster and focus on developing important features.
Today, development can refer to many factors, including security installations or client-side scripting. This can take a lot of time as you need to identify the network problems and scripting problems and at the same time find a way to solve them.
To customize your website and add all the features and functionality you want, you can use an outsourced Hire team of professional developers. This option is less expensive and can also give you more freedom when creating your website.
When creating online auction software, you should also:
Consider security
It is necessary to have an SSL certificate to increase the trust of your target audience and improve the ranking of your website. Also, websites that process payments must have an SSL certificate installed.
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To protect user data, you need to develop features that regularly back up your website and store it in a safe place.
Add content
Integrate web content into your website. Usually it contains images, videos and text on your website. Follow these tips when uploading content:
- The font size of your text should be large enough to be legible. Your choice of font should also be legible.
- Always use high-resolution images for the websites. For an auction website, the quality of the images is crucial.
Step 7. Test your auction website
To ensure that all functions work properly, software -Engineers do this After creating an auction website, do coding and unit tests. Also, QA engineers need to perform manual or automated tests. It can also help you identify critical bugs and security issues.
Acceptance testing is the final step in the phase that ensures all features are working properly before an MVP is released.
Step 8. Release MVP
When the first version of your auction website is ready, you need to set up a server and make your website live. Depending on the common technical needs, developers can assist in choosing the best option to launch your site.
If you want only selected people to access your site, enable “under construction” mode. Meanwhile, all other users will be redirected to a page informing them that a website is not ready and will be launched soon. Therefore, developers can access your auction website and test it on a live server.
Also, an extra step is advisable when releasing an MVP.
Create a website design documentation
It is advisable to create website design documentation while developing your auction website. Properly prepared documentation makes the work of software engineers easier. It helps to keep all technical information about a product structured. It also includes a user guide and a system description.
Step 9. Develop new features
Once you have released and tested the MVP, do not stop the development process.Feel free to analyze your customers’ needs and improve your website’s functionality by developing new features. Also, it is advisable to collect feedback from website users to understand what features they are missing to enjoy using your auction website.
Maintain your website and keep developing new features, to improve the website and grow your business.
CODEIT EXPERTISE
At CodeIT we know how to create an auction website. Check out our successful projects to learn more about our expertise in the niche.
GIObikes
GIObikes is a feature rich website focused on selling leisure lifestyle products. Convenient and intuitive navigation allows users to easily find the products they want, choose a shipping option and pay online.
Problem
Since the customer had switched from a retail store to eBay, they asked our team to implement a similar auction feature on their new website.
Solution
We developed the auction functionality, which is the core functionality of the website. Users can explore products and share their bids with a few clicks. Meanwhile, users can buy products quickly by paying a fixed price.
Tendermaster
Tendermaster is a system that helps the Ukrainian government place their tenders. Private companies can review them and share their offers. The system has many features that ensure high transparency and security.
Problem
The client asked our experts to create an online auction website for transparent bidding management. Our team had to develop a high-load system that is integrated with the official government procurement platform.
Solution
We have many experts who know how to create a bidding system. It offers the possibility to create a tender, share offers and negotiate. In addition, all users are verified and thoroughly checked to avoid fraud. Therefore, our team has built a stable system that meets all the requirements shared by the client.
SUMMARY
Statistics show that building an auction website is a profitable kind of business. The success stories of market leaders prove this. If you don’t know how to create an auction website, follow CodeIT’s nine-step guide:
- Buy a domain name
- Prepare for the website- Development ahead
- Create a UI/UX design
- Choose a tech stack
- Integrate a team of developers
- Develop an MVP
- Test your auction website
- Publish MVP
- Develop new features
If you have a If you want to create a feature-rich online auction website, finding a tech-savvy partner is advisable. CodeIT has extensive expertise in creating auction websites. Feel free to contact us and share your ideas. We’ll help you develop a website that meets all your needs.
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