e-Auctions are negotiations conducted via an online platform where Suppliers get the possibility of improving their proposals based on market feedback (e.g. rank in negotiation) and are considered to be the most transparent way of conducting negotiations. Basically, there are two types of Auctions.
1. Forward Auction
2. Reverse Auction
Forward Auction - Forward Auctions are sales oriented auctions, where Auctioneers are trying to sell their products or services. In a forward auction, the buyer bids on the seller's item and the prices of the item increases by a fixed increment amount during the auction and in a forward Auction the highest bid price during the Auction is the one which wins.
For example, when a Bank or a Debt Recovery Tribunal (DRT) hold an auction to sell a property or an asset - it will use Forward Auction mechanism.
Reverse Auction - Reverse Auctions are Purchase oriented auctions, where Auctioneers are trying to purchase products or services. In a reverse auction, the seller bids on the Buyer's item and the prices of the item decreases by a fixed decrement amount during the auction. In a Reverse Auction the lowest bid price during the Auction is the one which wins.
For example, if a bank (or any organization) wants to buy computer systems or even transportation services, it can hold a reverse auction to procure goods and services at the best possible price.
Anyone be an executive of a company or an individual wishing to bid or participate in an online Auction event is a Bidder. On Bank or DRT Auctions, a Bidder will be bidding in the Auctions he has been qualified for.
By responding in an Auction, the Bidder commits to buy or sell items at prices submitted by him during Auction.
Each Auction is a highly confidential event conducted between the Auctioneer and a set of qualified Bidders on the Bank or DRT Auctions platform. No outsider can view any aspect of an Auction event without proper authentication by Auctioneer. And even then, a qualified Bidder can only view details of his own bids.
Therefore all data like Items' specifications, pricing, Bidders' information and bid data are all confidential and available to respective Auctioneers only.
To participate as a Bidder, Registration is a simple process at Bank or DRT Auctions on https://bankeauctions.com
Auctioneer can upload .ppt, .doc .pdf, .xls, .jpg and .zip files. There is a size limit of 2 MB for each document. Only one document can be uploaded for a particular field. In case, multiple documents are required to be uploaded, bidder can upload a single zip file containing multiple documents.
Auto bid, if available, enables the bidding process to proceed down or up in standard decrements or increments automatically. This provision allows the Bidder to make bids automatically; that is Bidder does not have to submit each bid manually. The Bidder specifies the top limit (in case of Forward Auction) or bottom limit (in case of Reverse Auction) up to which his bids can go up and down by auto bidding process.
There is a provision to automatically extend the time when there are bids in the last 5, as applicable, minutes of closing time. Auto extension is a feature by which Auction closing time gets increased by a specified duration if a bid is received in last few minutes.
For example, if in an Auction scheduled to be closed at 12:00 Hrs. and a bid is placed at 11:58 Hrs, then the Auction closing time will be increased automatically to 12:03 Hrs. By default if any bid is received in last "5" minutes, then Auction closing time will be increased by 5 minutes. The extension time is configurable and Auctioneers can define their Auto extension time limits while creating the Auction.