What is a reverse auction?

Reverse auction is a term that is generally associated with an internet auction and purchasing electronic purchase. The reverse auction is also known by many other names, including the auction of public procurement , source event , e-sourcing and euction . The first reverse auction took place in the 90s when the Internet was introduced as an auction tool. The concept of the reverse auction continued and grew tremendously, mainly because of the success of the first reverse auction society. A person who places the highest offer usually ends with an item.

with a reverse auction, but the opposite is true. More specifically, the buyer advertises the need for a subject or service. Sellers will then store offers on an amount they expect to be paid to perform a service or provide such an item. In general, a seller who places the lowest offer, wins work or sells an item.

For a reverse auction on the Internet to take place, a big planning is needed. It starts with a meeting that takes place between the buyer and the seller, who is also known as the market creator . During this meeting, the buyer and the seller discuss the required service or good. Special considerations are discussed at this meeting, such as the necessary materials to complete the task, a time frame to complete the work and even the budget for this work. If the buyer is interested in buying an item, considerations such as the age of item and the quality of the item may be discussed in advance.

The online reverse auction offer is generally captured as it happens. This "real -time" bid function makes the offer more competitive because dealers are trying to exceed Each others to get a job or sell an item. At the end of the day, the aim is to reduce the buyer buyers.