What is e-Auction?
Electronic auctions are web-based auctions where preferred bidders submit offers digitally against the buyer’s specification. All announcements following and including the request to pre-qualified bidders to propose new costs and/or values must be digital. E-Auction can be used for buying/selling movable and immovable properties.
What is the difference between in the auction processes, the conventional one and the online auction?
e-Auction offers the same bidding process as done in the offline bidding process. One of the main differences between is, the bidding increased sitting in front of PC. The auction participants are able to check the latest price and able to quote the higher price to be the top bidder.
Post e-auction activities
After the auction closed the winner of the highest bid intimated by the bank and Bidder needs to sign the relevant documents to finish the process and bidder have to contact the bank directly.
Advantages of e-auction –
- Transparency in process
- It will be clear to participants why they won/lost the e-Auction.
- This process makes participants clear that why they won or lost.
- Real-time market information is provided to Participants.
- Faster contract awarding process
- Better than face-to-face negotiations and time-saving.
Limitations of electronic Auction-
- There is much possibility of fraud
- Participation can be Limited
- There may be some security issues
- Limited to Auction software
- Lengthy cycle time
- Monitoring time
- Equipment for buyers
- Order fulfillment prices
What is the role of Digital Signature certificates in E-auctions?
To make this process secure, DSC or Digital Signature Certificates are used. These certificates are digital equivalent of physical or paper certificates. Examples of physical certificates are passports, drivers’ licenses or membership cards. DSC serves as proof of identity of an entity for a certain reason; for eg. , a driver’s license identifies the person who can legally drive on the road in a particular country. Likewise, a digital certificate (electronic format) can be presented digitally to prove someone’s identity, to access data or services online or to sign certain documents electronically.
Auction is a bit tedious process but due to advancement of the technology it has become efficient, executable, strategic process. E-Auction is one of the convenient forms of the traditional process and can be executed remotely.