• Fri. Jun 14th, 2024

Online Reverse Auctions Are No Longer For Business to Business, the Average Consumer is Now Welcome

ByLucille Wood

Feb 19, 2023

Online Reverse Auctions Are No Longer For Business to Business, the Average Consumer is Now Welcome

In recent years online reverse auction for business to business has certainly proved to be of great value for companies looking to secure capital equipment, services, and materials from suppliers. Companies have leveraged software technology, and the Internet to facilitate this opportunity, while cutting massive cost in the process. With a suffering economy and companies looking to survive by deploying creative cost saving measures its no wonder that online reverse auctions have earned popularity amongst corporate America as well.

But what about the average consumers who shops online everyday? Is it possible that similar technologies have the ability to pass along such saving, better yet… is the online auction industry already providing these services, and the masses of Internet consumers have yet to discover the cost saving benefits?  The answer is yes! There are a couple of companies who have entered the online auction industry in recent years that employ reverse auction technology, as well as impressive shopping portals to their customers. Companies are utilizing the reverse auction concept to pass on extraordinary saving to their customers. While each of these companies has a different approach to online reverse auctions with different consumers benefits. Not all of them are completely focused on reverse auction as a means to providing consumers value. None the less when shopping online the consumer has the potential to find some real bargains.

Reverse auctions come in a variety of different formats, some are set up to auction off used and new merchandise where the buyers post a product or service they need, and a description of what they want. The sellers who happens to have the desired product will in turn actually lower their price as they compete with other sellers in hopes of generating the sale. On the other hand, other reverse auction platforms post only new products that have all the manufactures warranty’s, and require credits to participate in their reverse auctions. here are three reverse auctions that require credits the Xpress auction, the Zero auction, and the Unique bid auction.

The Xpress auction works like this: A new product is listed for auction. The customers who register for free, and purchase credits. Then use a credits to reveal the items current price. Every time the price of a product is revealed the price drops in increments of twenty five cents until someone chooses to buys the product. 

The Zero auction works in a similar manner, however the winner of this auction is the customer who places the last bid that drops the price of the item to zero dollars. Winning bidders actually get the item at no cost, or zero dollars, however there is your credit bid cost.

The Unique Bid auction is quite a bit different than the previous two auctions described. Here the winning bidder will have to meet two criteria in order to win. You will have choose the lowest, and unique bid amount of the item, do that and you will win. Some people will use a spread strategy to cover several lowest, and unique bids in order to win. In this style of reverse auction the bidding increments are in twenty five cents as well.

In addition to some reverse auctions will also provides its customers with a shopping portal that is comprised of retailers most people do business with everyday. The shopping portal may have additional value as they may actually pay their customers through a rewards program to shop very similar to frequent air miles that you would accumulate using your credit card, or using a particular airline on a consistent basis that allows you to rack up air miles to get a free flight.

Reverse auction are no longer providing benefits to just business to business any longer. Internet companies are here to revolutionized the online auction industry with reverse auction technology.