This study concerns design thinking and how to achieve usability when designing applicationsfor smart watches. The study's focus is on interaction and design for online auctionapplications such as Ebay and Tradera. After studying usability and design for devices withsmall screens, guidelines and design principles for interactive systems, we developed apaperprototype for an auction application. The prototype was used for testing our intervieweeswhile observing and asking questions. After collecting the data we analyzed the responses andfeedback on our prototype and combined the results to previous studies.