All about Coupa Auctions

Learn about participating in English and Dutch Reverse Auctions and expand your business with Coupa.

What is an English Reverse Auction and Why Should I Participate?

An English Reverse Auction has one buyer and many sellers. Think of it as the opposite of an art auction; instead of buyers driving the price up, sellers compete and force each other to drive their prices down. Sellers offer decreasing prices to sell their product to the buyer; the lowest bid at the end of the auction is marked as the winner. A English reverse auction essentially streamlines the sourcing processes. Auctions are held online, so there are increased opportunities for sellers to connect with buyers around the world they may not normally have access to. This accessibility also makes it easier for smaller businesses to participate. Because buyers release the same requests and information, all participants will be competing on an equal playing field. Review our help section on English Reverse Auctions.

How to Prepare for a Successful English Reverse Auction

Set yourself up for a successful auction by asking yourself these questions: – How many other suppliers will be competing? – When is the auction? How long will it be running? – Is there a supplier participating that the buyer has worked with before? – Are there any other parameters involved in the bidding process (price, shipping, terms, etc)? – What is my minimum acceptable price that will profit my business?

What is a Dutch Reverse Auction and Why Should I Participate?

A Dutch reverse auction is controlled by the buyer. The buyer will set a low price, normally lower than the expected buying price. Along specific time intervals, the buyer will increase the price by a set amount until a supplier accepts it. Dutch reverse auctions are advantageous to both buyers and sellers because of how quick they are. Because businesses will no longer need to spend time on outside research, and sellers will bid quickly when the price reaches an acceptable level, this step of the sourcing process is streamlined. The transparency of a Dutch reverse auction also adds to its appeal, as all competing sellers will be on an equal playing field. Review our help section on Dutch Reverse Auctions.

How to Prepare for a successful Dutch Reverse Auction

Set yourself up for a successful auction by asking yourself these questions: – How many other suppliers will be competing? – When is the auction? How long will it be running? – Is there a supplier participating that the buyer has worked with before? – Are there any other parameters involved in the bidding process (price, shipping, terms, etc)? – What is my minimum acceptable price that will profit my business? – When is it appropriate for me to place a bid? – How much will the price be increasing by? At what time increments? To learn more about participating in these types of auctions through Coupa, check out our help sections on English Reverse Auction and Dutch Reverse Auction.