Auction bid is one of sourcing services for international buyers, it includes reverse auction, open bid auction,etc

Reverse Auction

While traditional auctions involve a single seller and many buyers, a reverse auction generally involves many sellers and one buyer.  For example, procurement auctions are used to obtain competitive bids to provide goods or services.  Theoretically, regular auctions and reverse auctions are equivalent.

Procurement Auction

A market mechanism in which an object, service, or set of objects is being purchased, rather than sold, to the auctioneer. The auction provides a specific set of rules that will govern the purchase to the submitter of the lowest bid. The specific mechanisms of the auction include first and second price auctions, and English and Dutch auctions. Procurement auctions are often used by the government (for example, among defense contractors).

These tables show the combinations of Auction Types and Auction Rules that are permited for auctions. If only one Auction Rule is allowed for an Auction Type, it is not necessary to select the rule because it will apply by default.

Dutch Forward Auction

A Dutch Forward Auction is an auction that uses an open format and ascending-bid structure.

Auction Rule:

In a Dutch Auction, bids cannot be outbid. Every bid that is processed and Accepted will be a firm bid (no proxy bids are allowed) and wins the bid quantity.  One Bidder can bid multiple times and have multiple, different bids. Bidding starts on an opening price and the system raises the price Bidders can bid by one bid increment at each time interval.  The bidding starts at a low price and progressively rises until a Bidder claims an item or items. (Current Price and Quantity Available refresh in real-time throughout the course of the auction.) When multiple units are auctioned, Bidders claim the item or items at a price and bids continue to rise. They rise until demand rises to match supply and supply is exhausted. When the goods are exhausted, the bidding is over. The first winner who takes a prize pays a lower price than later winners.  Chances are, the first winner has the greatest interest in the items and may bid at or near the lowest valuation. The Dutch Forward Auction ends according to the following criteria:

• When bids have been received on all available quantity
• When the Reserve Price is reached
• When the Auction Close Time is reached

English Auction

The English Auction is the most common type of auction. The English format can be used for an auction containing either a single item or multiple items.  In an English Forward auction, the price is raised successively until the auction closes. In an English Reverse auction the price is lowered until the auction closes.

Proxy bidding is permitted.  The Proxy bidding feature will match any bids, but will not exceed the last proxy bid amount.

Bidding Begins:The first bid may be at or above the Opening Price.

Winners are selected:The auction ends according to the Auction Rule. ! In non-proxy bidding scenarios, Auction determines the winner by sorting first by Amount, then by Quantity, and then by Time. Time is used, when necessary, to evaluate bids when both the Amount and Quantity are tied. This means that if two Bidders offer the same amount for each item on which they are bidding, the Bidder bidding on the largest quantity of items will win. If the Bidders are tied for price and quantity, the determining factor is Time. Auction chooses the first of the Bidders who has submitted one of the identical bids on an auction, as the winner.

Bidding Ends: If an auction is for more than one of an item, Bidders may have to accept a partial win. For example, suppose you auction 200 items. First, Bidder1 bids $200/unit for 125 items and then Bidder2 bids $200/unit for 100 items. Bidder1 bid first and would win 125 of the units and Bidder2 would win only the remaining 75 units. Bidders can select to win only if they can get the full quantity on which they are bidding.

Proxy bidding is allowed. It will match any bid, but will not exceed the last proxy bid.

English (no ties) Auction (Forward and Reverse)

In an English (no ties) Auction, Auction can automatically select more than one winner. If more than one winner is to be allowed, the auction originator must manually select the winner(s).
Bidding Begins: The first bid may be at or above the Opening Price. Auction filters winners for English (no ties) Auctions as follows:

! To win, a Proxy Bid must exceed the last competing manually entered bid. It must either be higher (forward auction) or lower (reverse auction) by at least one required bid increment.

! If two Proxy Bids reach their limits and they are the same, the first Proxy Bid wins.

! If a Proxy Bid reaches its limit and a regular bid is for the same amount, the regular bid wins, even when the Proxy Bid was the first bid.

Winners are selected: Winners are selected based on the Auction Rule chosen for the auction.
! In non-proxy bidding scenarios, Auction determines the winner by sorting first by Amount, then by Quantity, and then by Time. Time is used, when necessary, to evaluate bids when both the Amount and Quantity are tied. This means that if two Bidders offer the same amount for each item on which they are bidding, the Bidder bidding on the largest quantity of items will win. If the Bidders are tied for price and quantity, the determining factor is Time. Auction chooses the first of the Bidders who has submitted one of the identical bids on an auction, as the winner.
Bidding Ends: according to the Auction Rule.

Open Bid Auction (Forward and Reverse)

Description: In an Open Auction, Bidders can see the Bid History of other Bidders. Bidders submit bids on an item or items being offered at auction within a specified amount of time.
Bidding Begins:The first bid may be at or above the Opening Price.
Winners are selected: At the time bids are reviewed, the award of property is made to either the highest or lowest Bidder, based on the Auction Type, Open Forward or Open Reverse. In an Open Forward Auction, the highest bid is the winning bid. In an Open Reverse Auction, the lowest winning bid is the winning bid.
Bidding Ends: The auction ends accordin