Forward (also known as English or Ascending) Auction is a type of auction where customers compete to purchase goods or services by bidding increasingly higher prices. Do you always want to sell products and services quickly and at the topmost price a market can offer? If your answer is “yes”, then this type of auction is definitely for you. Because of a great number of customers per product and one seller you are surely going to have a strong competition for your goods or services, which means that you are likely to sell your stuff for as much money as possible.
Rules of Forward Auction
A Forward auction is organized by a Seller and Buyers bid to purchase a product or service. The rules are simple:
- The participants submit their bids before the start of the auction
- The auction has 3 rounds
- Players bet alternatively during the round
- The winner is the participant who offered the highest price
- There is no winner if no bet was made
- Auction begins with the initial price named by the auction planner and grows by a predefined minimum step value
- To keep the play fair, all participants remain anonymous in the auction
The development of online procurement makes bidding a lot easier while not changing the rules of the auction at all.
Pros and cons
The simplicity of Forward English Auction is increased by enabling to use this auction in e-procurement. Let’s take a look at the advantages that it brings:
- In case of low competition (recommended to use) the cost of goods will be increased significantly, and the Seller can get the maximum out of the bidding.
- The auction is perfect for when the demand is low but for a long time, there is a buyer at a specified price. So here comes the opportunity to increase the price.
- Transparency: the bidder is able to see all bids and decide whether to place a higher bid or not.
- Time-saving: the rounds in Forward Auction are limited in time.
However, there is one disadvantage:
- Winner’s curse: sometimes a bidder can get caught up in the buzz of competitive bidding and bid more than they actually have. Our tip is to write the maximum amount you would like to spend on a piece of paper, your phone, etc. This way you will always be able to “remember your limits”
What to use a Forward auction for?
There is a great variety of things and services that can be sold in Forward English Auction. These spheres below involve purchasing high quality and rare products. Forward Auction is a type of auction to use here because good things deserve a reasonable price. Here are some examples of where we can use this auction:
- Online charity auction - save time and raise more money for charity while using Online Forward Auction
- Celebrity auction - bid as much as you want for celebrity meet&greet, their products or services, etc.
- Art auction - bid or receive a decent price, worth of a marvelous piece of art
- Property lease auction - get a decent payment for your high-quality property while your customer gets an estate of his or her dreams
- Car auction - buy or sell rare and exclusive vehicles for a respectable price
The modern world involves the internet in every sphere of our lives. E-procurement is not an exception. Online auctions make it so much easier to sell and buy products and services without wasting a lot of time and money.
Atreus Saas Auction Platform is an online auction website, which has innovative advantages for its users, for example, we provide our customers with full transparency of process and time-preserving procedures. Moreover, we have 24/7 online support in case you have any questions.
You can try out our demo by clicking on the link.