What is reverse auction?
A reverse auction is different from an ordinary auction because the buyers and sellers take up each other’s roles, which means their roles are reversed. Instead of buyers competing to get the best possible price for the goods and services they wish to buy, in this case sellers compete with against each other to get the business and prices usually dip because sellers coat less price than their competitors.
How Does Reverse Auction Software Work?
There is a common notion that auction software can only let the buyers bid to buy a products and services. However, it is also possible to take the help of web-based software to allow the sellers bid. With the help of a software it is possible to manage all the bids, while sellers bid to win the projects that are placed in the market.
How does Reverse Auction Software help?
Reverse auction presents you with endless possibilities. Usually it is used by business owners to develop a market place to sell the services they offer. Several businesses use it to serve as an intermediary between the prospective buyers and the service providers.
Another type of marketplace can be for the professional service providers such as lawyers or accountants. Small enterprises can make use of such website can get access to professional service providers to get help with their project.
You can install a marketplace in your website by implementing a reverse auction software to cater to the customers who are looking for some kind of professional service on a fixed rate or hourly basis. There can be features that can allow the buyers and sellers to communicate such as by way of private messages. The funds are paid by the buyers as and when they decide on a particular seller, but the money remains locked in the escrow account until all terms of the contract are satisfactorily met. This helps safeguard the interests of both the buyers and the sellers.
In addition to this, the buyers can view the feedback and ratings pertaining to each buyer. If a buyer likes working with a particular seller or service provider they rehire them in an instant by just a single click.