Is Reverse Auction System Is Better & Quality Service?
Most of us dont have solid idea on reverse auction system
. A reverse auction system is based on a concept different from that of normal auctions. Unlike auctions, the seller bids for the selling item or service in reverse auction. The buyer gives an advertisement in the required product or service & sellers respond to these ads by placing bids which tell the buyer about the amount he/she has to pay for procuring the item or service. The online reverse auction system is gaining wide scale popularity these days due to their enormous potential for purchase of huge amount of services or goods of business owners. Therefore reverse auction is slowly replacing general auctions. It is now better known as e-procurement, e-purchasing, e-auctions etc. Though it was there much before but was referred to as request for quote (RFQ) or request for proposal (RFP).
Against the popular belief, the reverse auction does not award the project to the seller placing lowest bid. It happens only if all the sellers are offering the same products or service & the buyer compares their features to find them absolutely identical. The chance for buyers to get all the identical bids is very rare as every bid will differ from the other & will have some extra features that wont be found in the other. Here, reputation of the seller matters most & that is why a bid placed by a reputable seller wins over the same bid made by a new seller.
Advantages of Reverse Auction System:
The reverse auction results in less time consumption & cutting down of marketing costs.
The buyer gives the service or product advertisement based on certain criteria & potential sellers place bids according to them.
Since all the bids are placed sticking to mentioned criteria, the buyer faces no difficulty in comparing them & selecting the best among them.
The buyer can personally communicate with the sellers so as to get assured of his performance & quality service.
The reverse auction has huge potential for saving both money & time of buyers when they try to procure expensive service or products.
The reverse auction brings more flexible business opportunities for domestic as well as overseas sellers.
The reverse auction is an ideal option for sellers to find new projects quickly & only bid for potential buyers thus minimizing costly & useless marketing efforts.