When the Internet became popular in the mid-1990s, one of the first things users realized was its business potential. If you can do business in a store or through a catalog, why not through a Web site? And soon online auctions were born.

Online auctions work essentially the same way as regular auctions. A seller places an item up for bids, and interested parties take turns naming the price they'd pay for it, until finally the highest bidder wins and must purchase the item for the last price he named. On the Internet, a time limit is usually imposed; for example, the highest bid received after three days is the winner.

EBay, founded in 1995, soon became the world's largest site for auctions. Most other sites for auctions on the Internet that operate under the same kind of system as eBay have found themselves unable to compete with eBay's size. As a result, eBay is still the leader in that marketplace. However, sites that operate differently -- using reverse auctions, for example -- offer a vastly different service from eBay and thus are able to stake a claim for themselves in cyberspace.

All online auctions allow the buyers the convenience of bidding from the comfort of home. Bidding, buying and selling can be fun and exciting, too. The thrill of placing a bid on an item and learning you've won the auction can't be beat -- especially if you wind up paying less for the item than you'd planned on!

No matter what you're looking for -- ordinary merchandise or obscure one-of-a-kind items -- there are bound to be Internet auctions selling it. With a little bit of savvy and common sense, you can find what you want and pay a fair price for it, all without ever leaving your home.