How does a reverse auction work?
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.
In a typical auction, the seller puts an item up for sale. Multiple buyers bid for the item, and one or more of the
highest bidders buy the goods at a price determined at the conclusion of the bidding.
http://en.wikipedia.org/wiki/Reverse_auction
BidJam is a reverse auction website where the lowest unique bid wins. It's a brilliant and exciting new way to
win brand new products for a fraction of their guide price!
The idea of a reverse auction is that a player aims to be the lowest bidder on an item, and the bid in pence
has to be one which no other player has made i.e. the lowest unique bid.
http://www.bidjam.co.uk/static/how/
Companies today need to shave expenses wherever possible and that includes the purchase of goods and
services needed to keep their businesses running smoothly and efficiently. In the old days, the process of
finding vendors was extremely limited and was very time-consuming. Many businesses simply found it easier to
pick one company and continue doing business with them indefinitely instead of hunting around for the best
provider for each new project. Today, technology has changed that completely thanks to reverse auctions and
the Internet.
For those unfamiliar with the concept, reverse auctions simply are auctions where the bidder is the seller not
the buyer. The bid reflects how much the buyer is being asked to pay, not how much the good or service is
being sold for. Web-based reverse auctions have become extremely popular for purchasing everything from
accounting services to securing raw materials. The reasons for the popularity may not be immediately clear,
but there are a number of benefits for both buyers and sellers.
http://www.epiqtech.com/reverse_auctions.htm
If so you’ve come close to the concept of the reverse auction. In its proper form, it’s something you find more
for business than consumers, an idea that really came to popularity towards the end of the 1990s.
A company contacts a “market maker,” who arranges the reverse auction. The market maker then contacts
companies that supply the item the buyer wants and handles all the aspects of the auction.
http://hubpages.com/hub/reverseauction4549
The origins of the 'reverse auction' date back to the mid 1990's. The concept was initially conceived as a way
for companies to bid on available government and private sector contracts. The auction would take place on
the internet and potential buyers were invited to openly compete and bid amongst other companies vying for
the available contracts; which would of course benefit the recipient by driving down the costs of the project.
When bidders reached a threshold and could go no lower for a particular contract, the auction would conclude
and the available contracts would be awarded to the companies with the lowest bids.
Sound familiar? It should, because bidding on contracts is certainly not something new by any stretch of the
imagination, but it certainly was on the Internet! Prior to the creation of the reverse auction, competing for
contracts was more localized and bids were oftentimes delivered through the mail as potential buyers had to
patiently wait for the outcome of their bid. However, with the advent of the Internet, suddenly a paradigm shift
transformed in the way companies and governments could post important projects and accept bidding from
potential buyers and contractors from around the world. By the same token it certainly opened the door for
contractors and buyers alike who could now bid on far more projects outside their immediate marketing area
and be informed of the status of those bids in real time!
http://www.ehow.com/how-does_5139034_do-reverse-auctions-work.html
A reverse auction (RA) is an auction where a buyer makes a product or service available for bidding from
different suppliers. The principle is the same as for normal auctions, but the principle is as the name indicates,
reversed. It is the buyer who is in charge and the seller who gives the lowest bid, is awarded the business.
A reverse auction is commonly also called e-auction, e-sourcing, eRA (electronic reverse auction) or REA
(reversed electronic auction) since they are carried out online on internet or on a system installed on the
Buyers internal server. This site provide a reverse auction system for free. Read more and try here!
http://www.myia.com/faqs.html
In a typical auction, the seller puts an item up for sale. Multiple buyers bid for the item, and one or more of the
highest bidders buy the goods at a price determined at the conclusion of the bidding.
In a reverse auction, a buyer contracts with a market maker to help make the necessary preparations to
conduct the reverse auction. This includes: finding new suppliers, training new and incumbent suppliers,
organizing the auction, managing the auction event, and providing auction data to buyers to facilitate decision
making.
http://domainauctionforums.com/viewtopic.
A type of auction in which sellers bid for the prices at which they are willing to sell their goods and services. In
a regular auction, a seller puts up an item and buyers place bids until the close of the auction, at which time
the item goes to the highest bidder. In a reverse auction, the buyer puts up a request for a required good or
service. Sellers then place bids for the amount they are willing to be paid for the good or service, and at the
end of the auction the seller with the lowest amount wins.
Reverse auctions gained popularity with the emergence of Internet-based online auction tools. Today, reverse
auctions are used by large corporations to purchase raw materials, supplies and services like accounting and
customer service.
http://www.mistersoft.org/freelancing/eufreelance
REVERSE AUCTION
