What is Online Reverse Auction?

Reverse auction bids in online auctions and e-purchasing. This is also known by many names like procurement auction, sourcing event, e-sourcing and e-auction. In general, in an auction, the buyer is authorized to bid on an item in the amount they are willing to pay, so you can buy that product. The person making the highest bid usually ends with the item. In the case of reverse auction, the buyer makes an announcement on the need for an item or service. The sellers then bid on the amount you expect to be paid to perform this service or provide such an object. The seller who places the lowest bid wins the job or sell the item.

Lot of planning is necessary when reverse auction takes place on the Internet. It begins with a meeting that takes place between the buyer and the seller, who is also known as the market maker. During the meeting, the buyer and seller to discuss the requested service. Some things, such as the materials needed to complete the work, time to complete the work, the balance of the work, all these things are discussed at the meeting. If the buyer wants to purchase an item, such things as the age of voice and voice quality can be discussed first. On average, individuals and companies save 10 to 40 percent on reverse auction purchases. Reverse auction also saves precious time buyers.

As the popularity of online reverse auction has increased, even the purchase of supplies and services online. Currently over 20 percent of all business purchases at least some of their supplies, or services online. Savings, simplicity, and the selection of reverse auctions make them the ideal choice for anyone who wants to join the Internet revolution purchase at auction. Certain benefits in online reverse auction there is flexibility in pricing decisions. Provides savings in marketing costs and distribution margins. Advantages of online reverse auctions for buyers are it's accessible to a large number of suppliers, tendering dynamic, and a tool for efficient price discovery process of integrating the direct negotiation. Applicability of online reverse auctions is for capital equipment, direct materials, periodical rate contracts and large volumes of goods. Reverse auction is a tool that is available for purchase through its function as well as improve its effectiveness. It can be defined as a specialized auction that allows the organization to procure goods from the source with decreasing incremental bidding .......