Using an Online Auction System in Open Source
Rachmat Aulia1)
Jurusan Teknik Informatika Sekolah Tinggi Teknik Harapan Medan1)
Jl. H.M. Joni No. 70A Medan 20152 Indonesia
Telepon 085760829886
E-mail : rahmataulia@yahoo.com1)
Abstract
Trade is a tool which can increase the
economic growing. In current many organizations
or companies make business related to sell-buy by
online. Normally, online auction is a field which
can increase the economic between auctioneers and
bidders. The online auction presented in this study
is to bring together between sellers and buyers
around campus. In addition, this study provided a
common prototype of online auction. The concept of
online auction is to search the highest bid from
each auction already published. This study applied
English auction as a type of auction because the
auction price more and more become increase. On
other hand, the whole process exists in the
prototype of online auction this study is translated
to visualization by drawing each processes detail
into diagram.
Keywords : Auction, auctioneers, bidders, English
auction, online auction, trade, bid.
1. Introduction
At the currently era, trade and sale in any kind
of aspects growing up where it becomes a strong
economics symbol in the world. A lot of countries
even enterprises around the world choose economic
aspect as a way to increase revenue and prosperity
for society or staffs and employers who work in
various companies. However, in digital era such
nowadays IT role is necessary as a facility to make
any aspect go forward and it is very useful
especially to develop and improve economic aspect
in the future because of information and technology
can be a tool for giving a service in doing of link
corporation between organizations and companies
around the world in term of establishes a good
connection and distributes their products to global
market.
One of services which support sales of any
categories of products or goods through the internet
is online auction such as e-bay refers to Weber
(2005). In addition, many companies use online
auction systems to advertise any kind of auctions to
the public so that these companies can sell as fast as
many product possible. Online auction is an offer
aimed to auctions in which the concept is to search
a winner from the winning price has been
determined previously according to pre-defined
auction rule (Peng et al., 2003). The online auction
system has several properties where it is called as
auction scheme (Peng et al., 2003). Actually, these
properties exactly required in auction scheme are
divided into two: basic and optional. Basic
properties include correctness, confidentiality and
fairness. Optional properties includes anonymity,
privacy, public verifiability, robustness, price
flexibility and rule flexibility. Both of these
properties are created to make satisfied the
requirements of applications and services which
supports in undertake online auction that
specifically is aimed to make efficiently in term of
computation and communication that found in
online auction system for the future.
E-bay (EBay. Accessed on 14 January 2008.
<http://www.ebay.com>) is a webs application
which gives online auction and shopping services in
which people and businesses can buy and sell
various goods worldwide. Otherwise, auction is a
process of buying and selling goods by offering
them up for bidding, taking bids, and then selling
the items to the winning bidder. From the buyers
perspectives they want a web-based online system
which contains sale of goods, fast access, ease to
use user interfaces, constantly changing
information, good delivery service, and online
payment so that they can shop from their houses.
Online payment is very important in
supporting e-auction. When a company or
organization tries to establish online auction system
it must have connections to the financial institutions
such banks. Another issue to consider is how to
design and create the online auction system where it
is safe. Crime may occur on the e-auction system
caused by the lack of the security applied on e-
auction.
Therefore, the powerful safety must be
included to e-bay in order to prevent something
occur causes disadvantage more and unsatisfied
among sellers and buyers even for businesses have
its online auction service.
2. Problem sells an auction to public
When we are studying far from a city, we
cannot find a facility to inform goods auction which
real needed by students. But, nowadays there is no
service that informing goods auction which is like
e-bay where has destination for bargaining some of
necessities of student such as selling laptops,
vehicles and anything needed by students like
household, mobile phone handset, books and so on.
In other hand, when the new students come to a
place like UUM (University Utara Malaysia) for
first time, they had interest for finding a shop which
sells goods such car or motorcycle with low cost
(second) but still in reasonable condition. Another
point which can make strong this problem is when
students use the bus facility here. Lets say that
UUM has a transportation problem. For example, a
bus service which can pick up its students to their
destination around UUM. But, a lit bit of problem
can occur such going to bus stop and waiting a bus
there that spend a lot of time. In certain time
occasionally such as Friday and Saturday there is no
available bus when a student is going inside or
outside UUM.
Especially for them whom stay outside UUM
which is like KACHI College. In addition, another
problem comes from sellers and buyers who both of
them are exactly student where sellers still do not
know whether is there anyone who wants to buy
their goods and also happen to buyers when they try
to get goods which they think is urgent for them.
Rest, these problems can be as current issue in term
of bring together among buyers and sellers.
3. The main things in auction
The thing that wants to discuss is a
requirement model for an online auction system.
Actually the online auction is a service for public
sale in which the price which offered is determined
by bidding where the thing is sold to the highest
bidder. So that anyone can participate in an auction
that has a purpose to bid to obtain an item. Rest, if
there is a person who offers the highest bid, it could
be as a right winner to purchase the item at that
price. In addition, auction is a really unique idea
because of the concept is like selling or buying
from direct person to person or everything is done
by person to person. Auction types is divided by
three essentially which are; English auction
(increasing price); sealed-bid auction (the item and
price are determined by auctioneer); and Dutch
auction (decreasing price).This system will be
presented based on a web. On the other hand, this
research also will discuss about a prototype of the
web-based auction system for students and staff in
UUM.
4. More theories and review about
online auction
An online auction has some features which are
devoted to bidders. One of features that have been
identified is a first bidder discount. Weber (2005)
explains about how the online auction system gives
a discount on the price where a bidder formerly
placed a bid for the first time. Actually, this feature
is called a discount mechanism and it has two
conditions the first condition in holding a bidder
receives the discount such as the bidder has to
submit the first valid bid and the highest bid in the
auction. Moreover, Weber has suggested two types
of reservation in the online auction system:
maximum and minimum. For the maximum
reservation, that means the price should be at least
as high the current price in which if there is no
bidder then the price is replaced with the
reservation price. The minimum reservation refer to
two or more bidders then the second highest must
be submitted first because it gives an increment
than the highest in term of reservation price.
An online payment is a payment facility when
buyers want to buy the bids in electronic markets is
introduced (Li & Zhang, 2004). This article has a
purpose to analyze product attributes, traders
characteristics and payment attributes in influencing
the payment choices in the online auction system.
This study is also focusing on the reasonable
method to use in online payment, in which
previously many online traders could not determine
the best payment method in online auction markets.
In addition, the prohibit model provides assistance
in analyzing the effects of product attributes and
traders characteristic on payment choice to be
investigated.
In developing the online auction the need to
understand user behavior is very important. Mizuta
& Steiglitz (2000) have explained a simulation of
typical online auction which five focused on the
duration is fixed, determining the winners payment
and posting the second-highest price continuously
according to goods sold in the online auction with
giving attention for user behavior in auctions.
Actually, this study is aimed to observe among
bidders and snipers, where bidders buy goods
during the auction period and snipers wait to bid
until the last moments. In other hand, this study is
presented so that participants in online auction can
revise what is being offered because of the
participants sometimes appear irrational related to
auction and price.
E-commerce is a service which provides sale
and buying of goods through internet by applying a
dynamic pricing strategy and it could be as an
important part of online auction references. Chan et
al (2001) explained about how to present and design
the implementation of multi-access and multi-
functional on online auction system. Actually, in
this study, Chen et al concern on the
implementation of online auction that can be
accessed through Web and WAP-enabled devices.
This study describes the auction types are English
auction; Dutch auction; Yankee auction; sealed bid
auction and double auction. The figure 4.1 displays
the auction types:
Figure 4.1: Different Auction Types
(Adapted from Chan et al, 2001)
In addition, this paper focused on English auction
type because mostly of commercial auction services
use English auction method when the system ready
to be launched.
At the current time, there are many internet
auctions using English auction. One of reasons why
English auctions is used is because of it can
produce a good result in getting a successful bidder.
Funasaka et al., (2002) introduced this mechanism
to be applied in online auction system over internet.
The flow of English auction mechanism is
presented as Figure 4.2. Actually, the flow of this
auction system begins from auction server which
provides a car auction as an example. When several
bidders access the server, they will see which
auctions are offered there. At same time, lets say
that based on this case, there are four bidders
looking at this auction. But, only two bidders
submitted the prices to get the auction. Others they
are just looking it. Hence, the auction server will
determine automatically which bid is going to be a
winner when the time for auction advertising is
expired. Finally, the selection server sends the bid
with new maximum value information to the
auction server. Based on this case, the others will
receive emails by the selection server to notify them
the result of failure to get that auction.
Figure 4.2: The Flow of English Auction Type
(Adapted from Funasaka et al., 2002)
According to Halstead & Becherer (2003),
online auction is a service which does marketing
over internet to bargain goods or items that gives
benefit to sellers and buyers. This study has
explained some benefits that already found in
online auction specifically for sellers and buyers.
The benefit for sellers in online auction consists of
selling merchandise quickly, easily and use low
cost. In other hand, there are some reasons why
sellers pleasant use online auction service to sell
their auctions. The reasons are to test price in order
to see what the market will bear (Collett, 2000); to
acquire new customers (Matchlis, 1998) and keep
new customer derive costs low (Warner, 2000); to
sell quality including the design of good that
sometime give discount for particular goods
(Warner, 2000); to involve customers in an
interactive sense (Oberndrof, 1999) and to connect
with buyers in real time (Reda, 2000). Buyers are
users who often access online auction sites. Here,
the benefit for buyers consists of buyers can access
online auction sites 24 hours that available during
seven days a week, can control over price and
service / product customization and can purchase by
paying lower prices than purchase in any shopping
stores.
5. Methodology
In designing a system, a methodology has a
role important in analyzing and investigating the
way of work of the system when it wants to be
established and researched. Some of the
methodologies which aimed for designing the
system have different processes and phases
according to the work flow. Actually, the
methodology applied for this e-auction system uses
SDLC (System Development Life Cycle)
(Searchsoftwarequality, (2008), Webpodia, (2008)).
 SDLC is a process used for developing Figure 6.1: Architecture use in online auction
information systems that aimed for activities related
to project management by presenting the This online auction system uses operating
explanation of phases that include in information system Linux as the server. All packets are needed
system development project. In other hand, this for this online auction system already available in
SDLC is also meant as a conceptual model used for Linux such as:
reflecting the processes with explains the steps 1. Apache web server (version 2.2.4-4 mandriva
which found in project management. 2007), include with PHP as language
Actually, SDLC methodology has several programming and SSL (socket secure layer).
models such as waterfall, Rapid Application 2. Mysql database server (version 5.0.37
Development (RAD), Joint Application mandriva Linux).
Development (JAD), fountain and spiral in giving 3. MTA (mail transfer agent) send mail with
explanations for each of process activities in the version 8.14.0-1 mandriva 2007.
system (Mariosalexandrou, (2008)). The rest, this
study will use four phases which comprise system 7. Framework
planning and selection, system analysis, system The framework which already designed for
design and system implementation and operation this online auction will be presented as follow:
according to (George et al., 2004) in selecting the
model which used for this research. The figure Identification
of Item for
related to model used for the SDLC methodology Auction

will be displayed in the following:

Systems Determines
Planning and Base Price &
Selection
Increment

Systems
Systems
Implementation SDLC
Analysis
and Operation Enclose
Item Picture &
Item Expired
Systems
Design

Fee
Figure 5.1 A System Development Life Cycle refers to Sales
Payment
(George et al., 2004)

6. Architecture Auction
Published
In developing a system, architecture has an
important role to describe the specifications which
are required in the system. The architecture can
Bidding &
provide clearly information related what Processing
components of online auction use and how the
process of online auction runs actually. The Figure 7.1: Framework designed for this online auction
architecture of this online auction is presented by (Adapted from eSourcingWiki, Maximizing Potential Benefits in
Reverse Auction)
reflecting main processes detected in online auction
so that the notification relevant to this system
acceptable well and accurate. Actually the 8. Use case diagram
architecture use in this project research will be This is a modeling diagram which beneficial
displayed as follow: applied to analyze the function requirements of a
LINUX SERVER system. This diagram consists of a set of possible
sequences of interactions between system and a
DB
MySQL
SEND MAIL
user in a particular environment and related to a
particular goal. In this online auction the use case
which had been designed comprise six activities
APACHE
such as user registration, selling an item, gives a
(SSL & PHP)
bid, manages account, view bids and determines
time expired.
BROWSER

External Mail Services

The complete use case of this online auction will be
I.E
(INTERNET
MOZILLA
FIREFOX
NETSCAPE
displayed as below:
EXPLORER)

Auctioneer Bidder
 ONLINE AUCTION SYSTEM

USER REGISTRATION

SELLING AN ITEM CALCULATES BIDDING

<<extend>> <<include>>
<<extend>>

SALES FEE PAYMENT LOGIN

<<include>>
Auctioneer
GIVES A BID
<<include>>

Bidder

MANAGES ACCOUNT

Figure 9.3: Form of Registration Confirmation

Guess VIEW BIDS

Timer

DETERMINES TIME
EXPIRED

Figure 8.1: Use case diagram for

online auction system

9. Implementation of prototype
The information is available in this part is to
inform how online auction system works properly.
Not at all, the information also will be conveyed by
Figure 9.4: Successful Registration
presenting screen shoots in order users will be
The second operation, auctioneers must login by
easier to understandable how this online auction
using username and password which they enter
system works as well as easy to evaluate whether
first. When it true, an access granted is derived by
this system is designed according to main objective
them to upload the auction including determine
which already mentioned above.
category, subcategory, item name, base price, bid
increment, days in auction and manage it.
For the first operation, auctioneers need to register
The steps looks like as follow:
in order they have gain access to upload an auction.
This step looks like as follow:

Figure 9.5: Form of Sell an Item

Figure 9.1: Main Page (Index)

Figure 9.2: Form of Registration Figure 9.6: Form of Payment

 Figure 9.10: Form of Bidder Login

Figure 9.7: Form of List of Auctions

The third operation is how bidders allow bidding an

auction item. In this step, bidders must have login
first before input a bid price. Bidding process will
start when bidders click an all item menu displayed
on the screen. Next, bidders may look all of
auctions and they can select which one of auctions
they want to give a bid. Bidding of the auction will
be up more and more until the system detects the
Figure 9.11: Form of Auction Bidding
highest bidder who becomes a winner (owner of
auction). Detail information will be displayed for
The last operation for the online auction system is
this section as follow:
how auctioneers and bidders manage their account.
In this section they can view information related to
sales fee recorded, change their account password
and edit their profile. In addition, system may
different who will login, whether auctioneers or
bidders. If logged in is auctioneer, the system will
display sales fee recorded when they have selected
it. Otherwise, it may not information when bidders
have selected it.

Figure 9.8: Form of List of Auctions

Figure 9.12: Form of Account Management

Figure 9.9: Form of Auction Selected Figure 9.13: Form of Sales Fee Recorded

Figure 9.14: Form of Changing Password
Figure 9.15: Form of Edit Profile
11. Conclusions
Online auctions offer lots of benefits to sellers
and the bidders. There are no geographical
constraints in online auctions. Sellers and bidders
who have Internet access can participate from any
part of the world. This reduces the cost of attending
an auction and increases the number of bids for
each item. As items do not need to be distributed to
a central location, it reduces costs and the seller's
minimum acceptable price.
In online auctions, items are listed for a
number of days, and bids can be placed at any time.
This gives purchasers time to search, decide, and
then bid for the item. Because of the ease of access,
relatively low prices, and broad scope of products
and services available, large numbers of bidders
participate in the bidding process thus making the
auction a success. Because of the large number of
bidders, reduced selling costs, and ease of access,
the number of sellers also increases with the
passage of time. Hence, the process repeat in circle,
and as the circle grows, the system becomes larger
and more valuable for all auctioneers and bidders.
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