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What is the difference between an auction and a classified ad?

April 26, 2017AD auction Classified difference

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What is the difference between an auction and a classified ad?

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An auction creates an environment where multiple prospective buyers can bid on your item. You choose the starting price. You may also choose whether to have a reserve price. The reserve price is typically the least amount you are wiling to accept. If the bids do not meet or exceed your reserve price by the end of the auction, then the item is not sold. If you do not set a reserve price, then the item is sold to the highest bidder at the end of the auction. You also choose the duration of the auction, 3-10 days. A classified ad is where you state the price you would like for an item. Buyers can choose to buy the item at the stated price by selecting the “Buy It Now” button. Or, they may contact you with a lower offer. You have the option of accepting or declining their offer. Classified ads run for 30 days.