eAuctions is the term used for online auctions of goods or services. Procurement departments generally source goods and services and hence use online auction technology for the purpose of buying; this is generally referred to as a “reverse auction”.
Many different types of eAuction models are available. The model that works best for your project depends on many different factors including number of vendors, level of standardization of goods or services, similarity of terms & conditions, etc.
eAuction models available in most of today’s eSourcing technologies include:
– Reverse auctions
– Forward auctions
– English auctions
– Dutch auctions
– Japanese auctions
Note many more auction models exist. Other models that we have seen include: Rank auction, Hong Kong auction, Sealed-Bid auction and Anglo-Dutch auctions.