Reverse Auctions

Reverse auctions FAQ

How does a reverse auction work?

A reverse auction model reverses the role of buyer and seller with the sole purpose of driving the price down within a set time. In a normal auction you, the buyer, would compete to buy goods at the highest price. In a reverse auction the sellers compete to sell goods to you at the lowest price.

What Are The Advantages Of Reverse Auctions?

  With a normal auction, the price goes up with the bidding, whereas in online reverse auctions resellers bid against each other and the price goes down. The reverse auction process can be used for any goods or services, and as such, it brings significant savings to all buyers.  

What Are the Benefits Of Online Reverse Auctions?

  • Significantly reduce the cost of the products
  • Save substantial amounts of time
  • Competitors are required to disclose their prices to each other, which then contemplates multiple rounds of bidding
  • It is quick (competitors normally have only minutes to do their bidding)
  • It expects and even encourages competitors to focus on each other’s pricing

What Are The Fees?

  • Buyers - Posting an Order is Free.\
  • Sellers - Displaying items for sale is Free.
  • Sellers - Bidding on items at online reverse auctions is Free.
Buyers pay a service fee a percentage of the lowest bid. The site will then provide you with the sellers contact information (name, address, telephone and e-mail) to complete the sale.

Do I have to buy the product at the end of the auction?

At the end of the auction you are not obliged to buy the product but you are obliged to pay the fee for the savings made. In practice reverse auction only works if you’re serious! If you are a genuine product buyer then everyone wins. Sellers get the opportunity to sell you a product, you get to save money and the site gets paid for saving you money!

How does the Seller contact me after the auction?

The winning seller will be notified of your contact details at the end of the auction and will be prompted to contact you immediately to arrange delivery.