Part of a series on Electronic commerce Online goods and services Streaming media Electronic books Software Retail product sales Online shopping Used car shopping Pharmacy Retail services Banking · Food ordering Flower delivery · DVD rental Marketplace services Trading communities Auctions · Online wallet Advertising Price comparison service E-procurement This box: view • talk • edit The online auction business model is one in which participants bid for products and services over the Internet. The functionality of buying and selling in an auction format is made possible through auction software which regulates the various processes involved. eBay, the world's largest online auction site, is one of the better known examples. Like most auction companies, eBay does not actually sell goods that it owns itself. It merely facilitates the process of listing and displaying goods, bidding on items, and paying for them. It acts as a marketplace for individuals and businesses who use the site to auction off goods and services. Several types of online auctions are possible. In an English auction the initial price starts low and is bid up by successive bidders. In a Dutch auction, multiple identical items are offered in one auction, with all winning bidders paying the same price -- the highest price at which all items will be sold (treasury bills, for example, are auctioned this way). Almost all online auctions use the English auction method. Contents 1 Strengths of the business model 2 Criticism 3