How to Score a Deal with BitBay’s Reverse Auctions

Have you ever desired to buy a product or service, but didn’t want to pay full price? 

Perhaps you find yourself scouring the internet in search of that one “hidden gem” of a deal?

For many of us, this is an extremely common endeavor - if not a daily experience. In fact, there are so many people looking for discounted products these days, it can be extremely difficult to find that deal of a lifetime. This is precisely why the concept of auctions was created many centuries ago. In general, auctions provided a platform for buyers to competitively bid against each other, in hopes of walking away with an item at a fraction of fair market value. 

But what if the tables were turned? ...what if multiple sellers competed in order to sell an item to one buyer?

How does a reverse auction work?

This is known as a reverse auction. With reverse auctions, the dynamics of the game completely change. All of a sudden, the buyer doesn’t have to compete in a frenzy to get a good deal. They simply list their desired item, and sit back, allowing sellers to bring offers to the table. The concept of reverse auctions has many applications, which is why we have incorporated them into the BitBay platform, along with traditional auctions. 

This reverse auction process can literally be used for anything... 

For an example let’s use Bob, who wants to build a house. He’s looking for a reputable construction company and a fair price. Using BitBay’s reverse auction template, Bob can post a listing, including a detailed description his dream home. Then, all he has to do is sit back while contractors bid on his project. Each contractor can see how much the others are bidding, which creates healthy competition, driving the price lower and the quality of offer higher. Once Bob narrows it down to a few contractors, a built-in counteroffer system allows him to negotiate fine details. 

While creating competition between sellers is an awesome way to find deals, there is still a much larger impact that reverse auctions have within BitBay’s marketplace. When included on a platform with traditional auctions, they create a very unique dynamic of balance.

You see, over the course of time, traditional centralized auction platforms have become flooded with buyers. This, in addition to exorbitant seller’s fees, has led to an overall increase in online auction prices - diluting the potential of finding a good deal. Fortunately, BitBay will never require expensive fees, and its reverse auctions provide the buyer with a chance to truly get a great deal again. When offered together, both traditional and reverse auction formats create a unique and natural counterbalance of the price for goods and services. It allows this price to find an unrestricted happy-place between buyers and sellers. 

This fits the true definition of a self-regulated and decentralized, free market. Everything built into the BitBay platform is centered around this ideology, making it an extremely valuable tool for those who need it.