I don't know how other games handle it.

The first item put up for auction should sell first, instead of the lowest priced. If the bid isn't high enough for the first, move onto the second, etc.

My personal opinion is that the most expensive item should sell first, again assuming that the bid is high enough.

Other problems include:
A) Only allowing 7 selling spots when 10 are displayed. This is just bad design.
B) Four separate markets. This has been redundant since Whitegate. Ideally, All AHs should be amalgamated, with the starter cities offering the lowest listing fees.
C) Speaking of listing fees. Useful for moving traffic out of busier areas, but unless you're a hardcore miser like I am, they're completely purposeless. They've been purposeless ever since the notorious inflation days.

I thought I could name a few more, but apparently I can't! Four is more than enough, anyway.