What is a Reverse Auction?

Rather than the bidder with the highest bid winning (as is the case in traditional auctions), at the end of the auction the person who holds the lowest unique bid will be the contractor. The lowest unique bid is the amount closer to 1 cent, which was only an offer by one person.

Reverse auction auction transforms the traditional model on its head by declaring the winner being the person who places the lowest unique bid. This can result in some incredible opportunities - perfumes for a retail value exceeding $ 100 for a few cents, the new mobile phones sold for $ 18 and iPod recovery of a fraction of their retail price.

So how do they do? Well, they make their money by charging an administration fee of bidders for each bid they place. This can be anything from a few cents to about $ 10. The rod run before receiving a given number of bids, which is the way in which to cover the cost of the product. However, as a buyer, you could score a real bargain, especially if you can place a few bids to win.

To participate in the auction, you must register and then purchase credit, which is used to pay the rates offered. But beware: it may take several bids initially offer only, and the status of your offer may change during the course of the auction, so you may have to bid again. If there is no unique bid at the end of the auction, the lowest bid made by only two bidders is used, and the person who places the first bid wins.

Here's an example:

No. Offer Outcome deals

0.01 4 cents lower, but not unique

0.02 cents a lowest unique bid

No Bids 0 0.03 cents

0.04 cent is not unique to two

0.05 cent 1 Unique, but not the lowest

3 Not only 0.06 cents ......