While some companies have online auction sites, the individual seller conducts most online auctions. Auction sites such as eBay require sellers to register, and to pay a fee each time they auction an item. Sellers usually list a reserve price, or minimum bid they are willing to consider, and also set a time limit for bids. Better sellers provide a full description of the item being auctioned, and a photograph, and are willing to respond to any questions about the item. At the end of the bidding period, the person with the highest bid wins the auction. At this point, the seller establishes contact to discuss payment options, shipping, refunds and follow-up service, if any is available.

Auctions work best when both the buyer and the seller fully understand and comply with the rules of the auction site. Doing so helps either party notice if something doesn