The United Gun Group website hosted the auction after GunBroker.com cancelled the sale amid widespread criticism. Bids started at $5,000.
The Florida neighbourhood watch volunteer's fatal shooting four years ago of the unarmed black 17-year-old, and subsequent acquittal, sparked a national debate on race relations.
United Gun Group said as long as 32-year-old Mr Zimmerman was obeying "the letter of the law", the sale of his personal firearm would be allowed on the site
"We know that many lives have been forever impacted by the incident February 26, 2012, and we're truly sorry to the Martin family for their loss," said its statement.
Some 1,019 bids had been made within less than 24 hours of the sale beginning on the auction site.
One bidder went by the pseudonym Tamir Rice - the name of a 12-year-old African American boy shot dead by police while carrying a toy gun.
That bidder's highest offer for the 9mm Kel-Tec PF-9 pistol was for $430,000.
Another user berated suspected pranksters, saying: "Quit trolling it's not worth it."
Mr Zimmerman told Orlando TV station WOFL the gun had been returned to him by the US Justice Department following his 2013 acquittal in the teenager’s death.
Zimmerman described the weapon as "an American Firearm Icon".
He said he would use proceeds from the sale to fight "Black Lives Matter" violence against law enforcement officers and to counter "Hillary Clinton's anti-firearm rhetoric".
The money was also to go towards ending the career of Angela Corey, who led the prosecution against Mr Zimmerman, he said.
Mr Zimmerman claimed he has been subjected to death threats since the shooting.
He added: "I'm a free American. I can do what I want with my possessions."
A lawyer for Trayvon Martin's family said the foundation in his name was focused on ending senseless gun violence in the US and had no comment on the auction.
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