Question

1.Explain the four major types of Internet auctions discussed in the chapter and how do they function.

2.Briefly answer the following:
a. BlueNile, is a diamond online retailer, discuss how has BlueNile built its supply chain to keep costs low?
b. List 2 retailers that build a supply chain to keep cost low-saved millions then discuss how they did it?

Answer 1

Please Note :I have answered the first Question here, as per the Chegg Answering Guidelines. Please Re-post for the rest.

Answer)
The 4 major Internet auction types are:
a) English auctions where the single item is up for sale and where there are multiple buyers who bid on the item against one another. The opening price is low and with a new bid the price goes up, this helps the seller to fetch the highest possible price for the item.
b) Dutch auctions are the auctions which have the products which open at a high price and then continues to drop the price until the buyer bids on the item. The first person to bid for the item wins and pays for the item. There is another type of Dutch auction here multiple items are offered at once, and the bidder states the quantity and price they would like to purchase and then the winner is determined by pay the most per item. However, the winning bidder pays the price which the lowest winning bidder offered.
c) Sealed-bid Auctions are the auctions where bidders submit the bid for auction and no one knows what the other person has bid. Here the highest bid here wins the auction.
d) The group buying or demand aggregation auctions where the more of the users who sign to buy the item the price of the item falls lower. Here the sellers are likely to offer discounts to the buyer to purchase the volume and also the buyers increase their purchases as the price falls.