This model describes sites which electronically simulate the bidding process in a conventional physical auction. Such sites can range in sophistication from those which present a simple catalogue of items to those which offer multimedia presentations. Most sites which are described by this business model are concerned with selling items to individual consumers. However, there are an increasing number of sites which provide facilities for businesses to auction products to other businesses.
Revenues are raised by this form of site by charging for a transaction and for advertising. Some sites also sell the technology they use to other sites.