How to run an online auctionIs it possible to organize an event like an auction privately? Can I do it online to avoid costs? How do I register an auction and make it legal? Can anyone do it, or do I need a CNPJ (Brazilian Registry of Legal Entities), a seal of authenticity, or something similar?
Auctions were, are, and will continue to be one of the best opportunities to buy a product at a lower price. Through these events, you can save a significant amount of money, and it doesn't necessarily have to be spent on a low-quality product—quite the opposite.
Many of these products are of quality, as is the case with cars seized by finance companies, due to non-payment by the financing contractor. These are good products, as long as you know which auction to buy them at. After all, a Federal Highway Police auction, for example, may contain wrecked cars or cars with lots of fines.
In today's content, we will explain to you if it is possible, and of course, explain how to do an online auctionSo, if you'd like to learn more about this topic, stay tuned to the end for more details. Come on, read along!
Can anyone run an online auction?
But after all, anyone can organize one auctionOr not? According to Brazilian law, the only companies allowed to conduct auctions within the law are companies regulated by the courts to hold such events. Therefore, it's not possible for just anyone to hold a vehicle auction, for example.
It's a way to ensure the company is high-quality, respected, and won't scam participants, especially when it comes to online auctions. Imagine if everything were open to the public? Many people would likely fall for scams, bid, and pay for items like vehicles and real estate, but never actually own them.
If these scams are already common even with absurd regulations, imagine without them. Many people fall for online scams every day, whether through WhatsApp, Facebook, or any other platform, especially the elderly. Therefore, it's essential to know how to protect yourself.
Run fictitious auctions of cheap products
But nothing stops you from holding events labeled as auctions, but for small items. It's the same as when major Instagram travel pages hold giveaways for trips to paradisiacal locations in exchange for raffle tickets, and don't even register the "pool" with Caixa Econômica Federal.
We recommend holding these events with low-value items, such as clothing, appliances, or other items that don't attract much attention. Forget about holding online auctions of vehicles or real estate; it's illegal, and you could face legal trouble if you go ahead with the idea.
In any case, since you can't hold an online auction, but you want to get rid of a vehicle, property, jewelry, or any other assets, try selling them online, whether on Facebook, Mercado Livre, etc.
How much does an auction product cost?
But how much can I charge for a product in a fictitious auction? Well, that depends a lot. It really depends on the product you're selling; after all, there's never going to be a fixed price for all the clothing items, for example, that you have in stock and are looking to auction.
Regardless of the situation, you can use the 40% rule. It's not exactly a rule, but a standard consensus that usually occurs in official auctions. This "rule" estimates that a product will fetch between 40-60% of its true value. So, if a piece of clothing costs an average of R$100, it will sell for between R$40 and R$60.
It's a good way to get an idea of how much you can earn once you figure it out. how to do an online auctionGenerally, above these values, people stop bidding because they feel they are already spending too much for an item that is usually already used, has problems, or something similar, such as fines on auction cars.
This was our guide where we clarified that it's not possible to know how to conduct an online auction, as only authorized companies can do so. We hope we've answered all your questions. If you still have any, comment below and we'll answer them as soon as possible. See you next time!
