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A Standard Auction is one in which bidding raises the price incrementally. Standard auctions can have a Reserve Price, and use Proxy Bidding. The winner of a Standard Auction is the person with the highest bid at the end of the auction. The auction is considered successful if the Reserve Price, if there is one, has been met. If the Reserve Price was not met, the auction is considered unsuccessful and the item owner is under no obligation to sell the item.
A Multiple Item, also known as a Dutch auction, is where the auctioneer has two or more items that are exactly the same and is willing to break them up to sell to individual bidders. If the auctioneer wants to sell multiple items as a single lot to a single bidder, he/she should use a Standard auction. In a Multiple Item auction, there is also a difference as to how winning bids are determined and broken down. There can be multiple winning bidders in a Multiple Item auction. The winning bidders are determined by who has bid the highest, earliest and for what quantity of items. However, all winning bidders will pay the same winning bid amount, which is determined by the lowest successfully winning bid. Multiple Item auctions cannot have a Reserve price in effect and they do not permit Proxy bidding. Bidders placing bids on Multiple Item auctions can bid on as few as one item or as many as the total number of items in the auction. For example, a Multiple Item auction has been placed with 10 items for sale. The opening price for the items is $1.00 each. After the auction opens, 20 people place equal bids for the items at $1.00 each. If the auction were to close at this point, only the first 10 people to bid would be declared winning bidders. Earlier bids take precedence over later bids of an equal amount (and in this case, quantity). However, before the auction closes, a new bidder places a bid of $3.00 for one of the items. Because this person has placed the highest bid, if the auction were to close now, he or she will win one of the 10 auction items. The first 9 bidders who bid at $1.00 win the remaining 9 items. However, because all bids will be accepted at the lowest winning bid, the person who bid $3.00 will only be required to pay $1.00 for the item. By bidding over opening price, new bidders can essentially knock the earlier low bidders out of the running which helps guarantee then a higher placing.
A reverse auction, also known as an upside down auction is an auction where people can list what they want and need and have other people submit offers to them. When someone posts a reverse auction, he or she is typically not intending to sell something, but rather to buy something. That something can be a product or a service. As a reverse auction progresses, the price drops. The winning bid is automatically selected at auction end and is the lowest bidder.
A Blind Auction may also be known as a Silent auction. This works very similar to a Standard auction where the highest bidder wins the auction. However, in a Blind auction, the bidding process is not interactive and the bidders will only receive information on their bid ranking when the auction closes. A Blind auction also differs from a Standard auction in that it does not offer a Reserve price and does not utilize any Proxy bidding.
A Linked Auction is a special type of auction item that links to another site for the buyer to bid on or purchase. It allows the auctioneer to enter a URL that the bidder will be taken to when they attempt to place a bid on the item.
An RFQ Auction is designed for publishing a "Request For Quotation". A Request For Quotation would typically be issued by an individual or organization looking for a product or service that they will describe in the RFQ's detail information. Then any person or organization interested in providing the product or service to the auctioneer, can submit their bid for providing the requested products or services outlined in the RFQ. Their bid may typically include additional descriptions or features of their products and services in regards to the RFQ, as well as any other limiting terms of their bid submission. An RFQ Auction works a little bit differently from the other auction types in a couple of ways. First, the auction bid amount is not driven up or down as with a Standard or Reverse auction. The auctioneer (the person/organization interested in receiving bids/quotes), will manually decide who the winning bid submission is. The winning bid submission is not automatically determined by the system by price or otherwise, since the auctioneer may select one bid over another depending on other factors, such as: Reputation of Bidder, Additional Details of Products/Services Offered, Quality of Bidder provided materials, Limitations of Competing Bids Offered
A Barter Auction is an auction where the auctioneer us willing to accept barter offers from bidders. A barter offer can consist of anything the bidder can describe. This could be an offering of some other item in exchange for the auction item. Or it could be an item plus some additional cash in exchange for the auction item. The auctioneer is able to choose whichever offer he wants to accept after the auction has ended.
A Turbo Auction is just like a Standard Auction with a few limitations. The Turbo Auction is meant to encourage more bidding activity by interested bidders, since it is forced to a low starting bid and does not allow a Reserve price.
A Fixed Price Auction is really not an auction at all, but rather an item for sale. The fixed price auction differs in that the first bidder to place a bid will win the item and the auction closes immediately.
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