Auctions are the process in which there is bidding for some properties or object and usually the highest bidder gets the ownership winning the competition. Reverse auction conducted using the reverse auction software is just the reverse of the system where the role of the buyer and seller are usually reversed. While in traditional auction the buyers compete to get the ownership of goods, services, or objects with prices increasing over every bid; in reverse auction the sellers compete to obtain such business and prices go on decreasing every time.
Reverse auction is known by various other nomenclature like the procurement auction, e-auction, sourcing events, e-sourcing or RA. It is a widely used terminology in the industrial business procurement system. For instance; in consumer auctions; meaning of the term is sales process sharing some characteristics with auctions though they are not the real auctions. Today, use of reverse auction software has become very popular in the commercial world with seller of the goods doing the bidding with the buyer selecting the winner. Such winners are not decided on the bids and the highest or the lowest bidders do not become the automatic winners as in case of traditional bidding. It is the prerogative of the buyer to choose the winner from the bidders and in doing so such buyer takes into consideration multiple things like price, qualifications, the time of delivery and reputation of the vendor etc. Use of reverse auction software is necessary for conducting such auctions perfectly.
A number of features in the software render the conducting of the reverse auction easier. For instance; these software usually contains a tool that can easily create the RFP and RFQ. User has to select the criteria only and provide the necessary information has to be fed in the software and the rest of the process is carried out automatically by the software.