Electronic Reverse Auction Definition
An electronic reverse auction is a type of online auction in which the roles of buyer and seller are reversed. In a traditional auction, buyers compete against each other to purchase an item or service from a seller. In an electronic reverse auction, sellers compete against each other to sell an item or service to a buyer.
Reverse auctions are becoming increasingly popular as more businesses move their procurement processes online. Buyers can use reverse auctions to save money by driving down prices and increasing competition among sellers. Sellers can use reverse auctions to win new business and increase their profits.
There are two main types of electronic reverse auctions: open and closed. In an open auction, any registered user can view the bidding process and participate in the auction. In a closed auction, only pre-selected users can view the bidding process and participate in the auction.
