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A reverse auction is a type of Auction in which the roles of buyer and seller are reversed. In an ordinary auction (also known as a forward auction), buyers compete to obtain a good or service by offering increasingly higher prices. In a reverse auction, the sellers compete to obtain business from the buyer and prices will typically decrease as the sellers undercut each other.
A reverse auction is similar to a unigue bid auction as the basic principle remains the same, however a unique bid auction follows the traditional auction format more closely as each bid is kept confidential and one clear winner is defined after the auction finishes.
In business, the term most commonly refers to a specific type of auction process (also called procurement auction, e-auction, sourcing event, e-sourcing or eRA, eRFP, e-RFO, e-procurement, B2B Auction) used in government or private sector procurement.
In consumer auctions, the term is often used to refer to sales processes that share some characteristics with auctions, but are not necessarily auctions.
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Wiki User
∙ 10y ago
Wiki User
∙ 10y agoAn online reverse auction is exactly the opposite of a regular, or forward, auction. A buyer who knows exactly what they are looking for creates a listing, and sellers 'bid' on it in competition with each other with the price going down.
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What exactly is a reverse auction?
In a reverse auction, a buyer puts a contract out for bid. Sellers offer bids on the item, competing to offer the lowest price. The price generally decreases as the auction progresses with sellers competing to offer the lowest bids.
What auction is the most common auction model for large purchases?
A reverse auction is the most common auction model for large purchases. During a reverse auction, the sellers bid to obtain business from a potential buyer.
What is the difference between a reverse auction and a forward auction?
A forward auction is the "ordinary auction" we are all used to today. In a forward auction, the buyer bids on the sellers item, and the prices of the item increases during the auction. On the other hand, a reverse auction switches the roles of the buyer and the seller. In a reverse auction, the sellers are competing for the buyers business, and the prices of the items the sellers are selling decrease during the auction.
What is the difference in a reverse auction and an ordinary auction?
Interesting question. Here goes. A reverse auction is a type of auction in which the roles of buyers and sellers are reversed. In an ordinary auction (also known as a forward auction), buyers compete to obtain a good or service, and the price typically increases over time. In a reverse auction, sellers compete to obtain business, and prices typically decrease over time.
What happens during a reverse auction?
In a reverse auction sellers are in competition to obtain the buyers business. The name reverse auction is apt because the role of buyers and sellers is reversed and instead of prices escalating, the prices generally go lower as sellers compete for the buyer's business.
Is name your own price an auction or reverse auction?
Name your own price is an auction, a "sealed bid" auction. The highest bidder gets the good or service and you don't get to hear other participants' bids. A reverse auction is where the prices start high and go lower, a setup used in supplier sourcing and procurement.
Is a reverse auction different from a regular auction?
In reserve auction, there is a maximum price for the particular auctioned item, and the bid reaches here, then the seller can not increase but lower the reserve price. In a regular auction, the Reserve price is the maximum price for the auctioned item that the seller willing to accept. You can go and check out for live auctions that are running on banknilami website. You can participate there.
How is a reverse auction any different than a regular one?
A reverse auction is when the sellers compete to obtain a business, and prices typically decrease over time. With a regular auction, sellers are buying a good or service, and the prices increase over time.
In an Internet Bidding Platform what is a reverse auction bidding type?
See www.yellowbids.com
Is static auctions the most common auction model for large purchases?
Static auctions are not the most common auction model for larger purchases. A static auction is an auction that requires bidders to hold up paper cards. The most common auction is a reverse auction for large purchases.
How can I put up my car for auction?
There are many online shops that provide car for auction services. Amazon.com is one of online shop that provides car for auction services. You can visit www.amazon.com
How can you host an online auction?
The term "internet auction" generally refer to individual items listed online on a site like eBay, whereas "online auctions" are more like an internet version of a live auction where a bunch of items are sold individually but as a group. Typically in an online auction you go on site to inspect items, bid online, then go on site again to pick up your items. Auctacity.com is one place to host such an auction.
