Auction Types

Reverse auction

This is where there are many sellers but only one buyer in an auction, reversing the conventional situation. Rather than giving sellers the opportunity to find the highest price for their goods, it gives buyers the opportunity to find sellers offering goods at the lowest prices.

Sellers aim to compete with the offers of other sellers. They can submit multiple offers, decreasing their price to the lowest offer they are willing to receive. When an auction ends the bidder who bid the highest amount wins the item. The term “reverse auction” is sometimes confused with descending auctions.