A reverse auction is a procurement method in which the buyer requests a specific good or service, and multiple suppliers compete by submitting progressively lower bids in real time to win the contract. In this process, sellers try to offer the lowest price, and the lowest bidder typically wins the business. However, the buyer often uses software to automate the process and can choose a winner based on factors beyond just cost.

How it works

Buyer posts requirements: A buyer (the "reverse auctioneer") posts a request for a specific good or service, often with detailed specifications.

Suppliers bid: Pre-qualified suppliers compete by submitting bids online in real time, with each new bid lower than the previous one.

Lowest bid wins: The auction concludes after a set period, and the supplier with the lowest bid usually wins the contract.

Post a Reverse Auction