1. IntroductionThe meaning of auctions and how they workWe can say that auction is a market mechanism through which the buyer bids and the traders (dealers) bid. The competitive and dynamic nature are the main characteristics of the auctions with which the final price is reached, furthermore the auctions are a method of trade and exchange that has been applicable for generations; transact with services and products for which traditional marketing channels are inefficient. The Internet, nowadays, provides an infrastructure to do lower price auctions with many more dealers and buyers.2. Dynamic pricing and auction types Auction has an important feature which is based on dynamic pricing. “Dynamic pricing” refers to a purchase operation (transaction) where the price or cost is not fixed. On the other hand, prices in supermarkets, department stores and other storefronts are fixed because they are catalog prices. There are different types of auctions available, each with their own procedures and motivations. Based on the number of buyers and merchants involved, it is customary to divide dynamic pricing into four main categories, and each of them can be done offline or online. Types of auctions: A) One buyer, one seller Each party can use barter, bargaining or negotiation. The final price will be determined by bargaining power, supply and demand in the market for the item, and perhaps factors related to the business environment. B) One seller, many buyers BuyersForward auctions are used here by the retailer (price increases with time in these auctions). Another example of this type is sealed bid auctions. In a first-price sealed-bid auction, the product is awarded to the highest bidder while in a "Vickrey auction" (a second-price sealed-bid auction... medium of paper... and arrangements for payment and shipping are included in these activities.Easy! Auction (saveeasy.com) is a typical post-auction tool.Summary We have introduced the meaning of auctions and how they work, and explained the relationship between the concept of dynamic pricing and the types of auctions In addition to the advantages of online auctions, we also talked about the auction process and software development. To conclude, one of the main problems of e-commerce these days is how to integrate the Internet into offline activities, therefore a business that can offer and provide its services both offline and online can add value to the customer experience. References1- Introduction to Electronic Commerce (3rd edition) [Efraim Turban, David King, Judy Lang].2- Korper, Steffano and Juanita Ellis. : The E-commerce book: Building the E-Empire. Academic press, 2000.