Skip to main content
Add as a preferred source on Google

Forward vs. Reverse Auctions

  • 09/01/13

In a nutshell, there are really only two categories of auctions — forward and reverse auctions. There may be variations with these based on a number of factors, including the progress of the auction and the criteria for determining the “winner” of the auction.

Forward auctions take the form of a single seller offering an item for sale, with buyers competing to secure the item by bidding the price upward. Forward auctions are far-better understood by the public at large than reverse auctions as to how they operate, due primarily to the fact that they are widely used at the consumer level. They are also widely used when the goal is for the seller to receive the most money possible for the item being offered at auction. Thus, a forward auction should be utilized for sales of goods and services of all types, whether conducted online, offline or a hybrid of the two.

Reverse auctions are the other major form of auctions. In a reverse auction, a single buyer makes potential sellers aware of their intent to buy a specified good or service. During the course of the actual reverse auction event, the sellers bid against one another to secure the buyer’s business, driving the price to be paid for the item downward. Thus, the winning bidder is the seller who offers the lowest price. Reverse auctions are most typically used for procurement by private companies, public sector agencies and nonprofit organizations.

Reverse auctions are not a short-term tactic for procurement operations, but are, in fact, a proven method for long-term management of indirect spend — delivering significant savings and process efficiency. For more information on reverse auctions and the procurement process, visit Reverse Auction Research online at www.reverseauctionresearch.org.

Source: Reverse Auction Research (www.reverseauctionresearch.org)

This article originally appeared in the College Planning & Management September 2013 issue of Spaces4Learning.

Featured

  • UPenn Announces Completion of New Veterinary Education Facility

    The University of Pennsylvania in Philadelphia, Penn., recently finished construction on an 11,800-square-foot veterinary education building, according to a news release. The Gail P. Riepe Center for Advanced Veterinary Education is the first dedicated classroom facility at the New Bolton Center, a large-animal hospital and campus about 35 miles west of the campus proper.

  • Montclair State University Starts Construction on $120M STEM Building

    Montclair State University in Montclair, N.J., recently broke ground on a new $120-million Interdisciplinary Science Building, according to university news. The university partnered with HoK Architects for the project’s design, and it’s scheduled to open in time for the 2028–29 academic year.

  • Montclair State University Debuts New VR Facility

    Montclair State University in Montclair, N.J., recently announced the completion of a new virtual reality learning facility developed in partnership with Dreamscape Learn, according to a news release. The 2,450-square-foot lab space is inside the College of Communication and Media building and will serve students pursuing careers in digital media, virtual reality, and content creation.

  • Tomball ISD Opens New Tomball West High School

    Tomball Independent School District in Tomball, Texas, recently celebrated the official opening of Tomball West High School, the district's third comprehensive high school, with a community ribbon-cutting ceremony, according to a district news release.