Online auction business model

Okay kiddo, have you ever heard of an auction? It's like a big game where people compete to buy something by offering how much they're willing to pay for it.

Well, an online auction is the same game, but instead of being at a physical place, it's all on the computer. People can go to a website and see a lot of things that they might want to buy, like toys or clothes or even works of art. But they can't just click "buy" like on a regular store.

Instead, they have to bid. That means they offer how much they're willing to pay for the thing they want. Other people can do the same thing, and whoever offers the most money gets to buy it.

The nice thing about online auctions is that they can happen all over the world! You can be at home and still compete with people from lots of different places to get the thing you really want.

Now, the people who run the website make money by taking a small percentage of each sale. This is a really good business model because they don't actually have to own any of the things being sold. They just create a space for people to play the auction game, and they get a little bit of money every time someone wins.

Some famous online auction sites are eBay and Amazon Auctions. Have you ever used them before? It's very fun!