Preventive Methods of Credit Risk in Online Auction

Along with the development of online auction, credit problem has become a focus attracting increasing attention of people. Only when information flow, capital flow and logistics all finish backflow, could it be regarded as the completion of transaction. Therefore, carrying out strict supervision on the three factors could thoroughly solve the credit problems in online auction. The paper analyzed the credit mechanism in online auction from three aspects. It's believed that, if only such three sections are perfected, could we realize the objective of establishing perfect credit mechanism very soon. Surely, the online auction will develop in a healthy, orderly and rapid way under perfect mechanism. Finally, the paper put forward the relevant preventive methods of credit risk in online auction.