Auctions are an efficient way of raising funds through the sale of items at the best price possible. The selling price of the item is determined through a competitive bidding process. There are many types of auctions that exists. The distinction between these types of auctions comes from the action of the bidders. Absolute auction means highest bid wins. The winning bid can be as high as the bidders are willing to pay. In this type of auction there is more money for the seller because of the competitive nature of bidding.Competition typically heats up most intensely at absolute auctions. This happens because bidders know that by besting a rival across the room or online. Bidding the highest amount can result in them winning the bid. Absolute auctions typically get the most bidding. The risk associated with an absolute auction is greater than the other types of auctions. But the potential reward is also greater. Minimum bid Auctions begin at a minimum price established by the seller. Bidding must begin at least at that minimum before there can eventually be a sale. The minimum bid is published and announced by the auctioneer at the start of bidding for that commodity. These auctions offer a certain level of safety to the seller but are not usually as attractive to buyers as an absolute auction. A key strategy for a minimum bid auction is for the seller to set the minimum bid low enough to attract the interest of buyers. Setting the minimum bid too high will discourage initial bidding. Reserve auctions allows the seller to accept or reject or counter the winning bid. Sellers typically make this decision before the auction event ends. This gives sellers protection so their commodities will not be sold below what they consider acceptable. Reserve auctions typically generate the least amount of interest among potential buyers. This is because buyers know their winning bid can ultimately be rejected. The bidders privately submit their one best offer in a sealed bid auction. This is generally done in writing and in a sealed envelope. The bids are opened privately by the auctioneer and seller who do not reveal the bids to any of the participants. The seller can take many courses of actions in this case. He can simply accept the highest or the best bid. He can also reject all the bids. Then he calls the bidders to bid again. Sealed bid auctions are often used for commodities that do not have a broad market or appeal. Keeping the bids private helps ensure that if all bids are too low for any of them to be accepted by the seller the commodity will not become stigmatized by having a perceived low value in the marketplace. The combo auction is one in which sealed bids are sought from bidders as the first step. If the seller does not accept the highest bid then the top five bidders are invited to participate in live bidding on an absolute or reserve basis. This is the second step to determine the highest bidder. For selecting the type of auction suited best for you there are various parameters. You ought to consider your goals and what you want to achieve from the auctions. The best fit for each may be different.