Reverse Auction

Reverse auctions are a type of eAuction where suppliers compete to win a contract or purchase order by offering increasingly lower prices or more favorable terms. In a reverse auction, a buyer initiates the auction by specifying their requirements, and suppliers submit bids in real-time. The bidding process typically involves a countdown timer, with suppliers continuously revising their bids to outbid their competitors.

The auction concludes when the timer reaches zero or when the buyer determines the winning bid. Reverse auctions promote competition among suppliers, driving prices down and enabling buyers to secure the best value and terms for their procurement needs.