PEFA's system is an electronically based system that uses client/server architecture, whereby, the suppliers/sellers are connected to the system through the Intranet, while the buyers connect to the system using the internet.
Online auctioning has revealed several advantages over the period of time that were just not possible with the conventional on-site auctioning; this is the reason why online auctions are probably the most renowned form of e-commerce in the present day world. On-line auctioning has been a tremendous interactive opportunity for both buyers and sellers, communicating with each other at their respective ease. Some of the advantages to the sellers and the buyers are mentioned as below:
1. One of the major advantages of online auctioning is its allowance to the fishermen, or any seller for that matter, to address a huge and diversified range of customers. Internet reaches the globe, thus anything on the internet is globally accessed, so the reach is beyond the localities.
7. There is lesser cost of selling associated i.e. ...
3. There is immense demand for fishes in the southern part of Europe, while major supply is in the north, so it's an opportunity for the suppliers to meet the customers and directly sell to them.
4. This also gives birth to the phenomenon of disintermediation, whereby, intermediaries are eliminated, again giving birth to increased margins and yet consumer friendly prices.
5. In online bidding, with huge number of buyers, the bidding is quite competitive, with lesser chances of customers forming a cartel or anything of similar sort so the customer is at advantage.
6. The time to the market, often referred to as the Lead time, is reduced, which keeps the fishes fresh in turn increasing its worth and value.
7. There is lesser cost of selling associated i.e. just 0.2%. As mentioned in the case example, the commission of auction house on $93 is $7, which is approximately 7.52%, while in online auction; it would be $0.18 only.
8. There are some small ports that are not able to generate enough value and are often overlooked. Through online auctioning, these ports and their respective sellers also gain access to a competitive market.
9. There is buyer authentication in terms of security deposits.
Advantages to Buyers
1. Online auction gives buyers more options to buy from by providing more and more information on what is available at the auction and at which ports.
2. The buyers have access to the bid placement at all times i.e. 24/7, which allows buyers from different time zones to also interact.
3. The lesser transaction cost reduced time for transaction, literally within seconds, attracts buyers more than anything because time is precious.
4. Online Auction