This auction model presupposes a preset original price decrease. Its major peculiarity is that no participant knows what this price is. Nevertheless, every participant can independently reveal the current price, making a fee-based bid. It triggers a process of price reduction that breaks the moment some bidder finds the price acceptable and buys this item.
Auctions Launched Worldwide
Business Domains Expertise
Years in Auction Solution Development
Auction Types
General Features
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Unlimited number of users and products -
Flexible customization of commission fees
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Integration with payment and analytics systems
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Multilingual mobile-friendly interface
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Integrated CRM and reporting system
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Fiat and cryptocurrency support
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Hidden and transparent participants list
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Email and SMS notifications
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Finance management
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Login via social networks
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In-build auction blog
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Data export and import
All-in-1 Solution
Digital auctions have redefined the basic idea of general buy-and-sell activities and the ways businesses reach their customers. With this ready-made auction software, you save your budget and stay in touch with this process
Interface customization
Buy-now option
Crypto and fiat payments
Comprehensive communication system
Advanced marketing tools
Customizable bid configurations
Gamified bidding process
High level of transparency
Major notions of Reveal Auction
Price decrease:
every time a customer reveals a price, it comes down by a specified amount.
Initial price:
to immediately attract customers, a preset price is usually equal or lower to the market price of the item in question.
Charge for bids:
to see a price and decide on a purchase, a customer bids. Every bid requires a fixed fee to be paid.
Winner:
a product goes to a bidder who becomes the first who agrees to purchase at a current price.
How Reveal Auctions Work
The core idea of a Dutch auction with a hidden price is radically different from its classical counterpart, where the price goes up from its initial value. In this auction model, however, bidders compete and subsequently slash the price.
Here is the basic scenario of what happens at reveal auctions. The seller first defines the price of an item. In some cases, the seller can also define the minimum price that can’t get any lower. Only the seller knows the initial price and the price during bidding.
And then the auction starts. Partakers, curious about the current state of price, should bid. Bids are fee-based – such bids decrease the cost of a lot at a fixed step. Bidders can buy bids one at a time or purchase a whole package.
The tender ends as fast as a buyer, the last bidder to make an entry, decides on a purchase at a current price. At this stage, this auction is complete, and the buyer pays the remaining amount for the item.
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Advantages of a Merkeleon Script for Reveal Auctions
At first glance, the success of a Dutch auction with a hidden price seems impossible. But in its essence, this concept is precisely tailored to the market specifics, which makes this tender variation most instrumental. Besides, the Dutch auction script from Merkeleon offers the following:
A Dutch auction with a hidden price has not yet been largely adopted among entrepreneurs. For this reason, it is a wonderful opportunity to occupy a vacant niche and turn your business into a thriving success.
This tender is easy to comprehend for bidders and easy to navigate for owners. The Merkeleon platform has a consistent and intuitive interface comfortable for its users.
The algorithm is highly comprehensive: each bid cuts the price. After that, a bidder chiefly decides what is their most acceptable price and purchases this product.
An operator can add more channels for traffic growth, create affiliate networks and bonus systems for attracting new customers.
Apart from a tender solution, an arranging party can introduce an option to buy items at a fixed price, avoiding the bidding process.
FAQ
Are online tenders legal?
Each country has its own legislation about Internet tenders. The Merkeleon team will provide qualified assistance and help you find the right vector for your future online auction following your country’s legal system.
What are the advantages of Internet auctions over stores?
The major strength of tenders is the opportunity for the owner to receive interest from auctions conducted by other operators. Plus, online auctions are very flexible as to the ways to sell goods – a price can increase/decrease, be unique lowest/highest etc.
Are custom scripts better?
For startup entrepreneurs, ready-made software is the best of both worlds. It saves time and money. Plus, you can pick from a wide range of Merkeleon software: from the classic English auction to the Scandinavian one.
What is the difference between classic tenders and Dutch variations?
In a regular auction, the initial bid is minimal; the price increases because auction participants compete with each other. In the Dutch tender, on the contrary, the price is high from the start and gradually gets lower.
Is it possible that bidders reduce the price to its minimum?
It may seem possible at first: bidders await the maximal reduction and then stop the tender. In reality, however, this situation is rather unlikely because longer biddings are associated with higher risks that some other participant will overtake your product. Hence, bidders cannot linger.
What are the advantages of price reveal auctions?
Bidders get a product at a lower price, while sellers still get maximum profit. As no one knows who will agree on the price, partakers tend to buy items at a higher price, driven by the desire to outplay other bidders and win.
What to sell at price reveal auctions?
This trading scheme is used if you need to quickly sell a large volume of lots. In this case, bidders quickly obtain lots. Moreover, Dutch auctions with a hidden price are applicable to sell low demand items. Also, electronics and consumer goods can be sold using this model. It can even be used as an alternative to standard ICOs in order to sell project tokens.
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