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December 14,2020
Auction is a process of buying or selling goods or commodities, which is put up for bid. The goods or commodities are sold to highest bidder or buying the item from the lowest bidder. Auctions is common practice to sell or buy the items or commodities even in older generations.
A reverse auction is a type of auction in which a seller bid for the prices he/she wants to sell the items or commodities for unlike regular auctions where the seller sells the item or commodity to highest bidder. In reverse auction, the buyer puts up the request for required items or services, and then seller bid for the prices on which they can sell the item or commodity. Buyer then selects the lowest bid price and procures the item or commodity from that seller.
Reverse auction began to gain popularity as the internet bloomed and internet-based auction tools became popular. In internet-based auction tools, multiple sellers connect to the buyer in real-time. Due to this the process of buying and selling becomes extremely simple, and more organized. In today’s era, reverse auction is often used by large organizations for procurement of raw materials, and supplies. As the bidding time is fixed, bidders can bid at the last minute with proper analysis and thinking in reverse auction.
