For Thrilling Online Bidding
It is a reverse auction with a hidden price that goes down with every bid. Bidders pay for the chance to reveal a price. These payments work like bids, only in a reverse way. Users discover the price and thus reduce it.
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
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
The intuitive interface of this auction platform is flexible and convenient to administrate, manage, and pursue deals. Nevertheless, as a business owner, it is up to you how your platform should look. You have your vision and ideas, we will gladly assist you and help you realize the desired features in the most efficient way
With buy-now, bidders can purchase a product at a fixed price, without waiting for the auction to end. It also means that some participants can get a lot and leave their competitors behind. The buy-now button can disappear the moment users make bids. The key component of such an instant buy is that it guarantees a purchase
It’s no secret various payment tools make service a more attractive destination for clients. While fiat remains the basic means of payment, cryptocurrency is actively making its way into even more online platforms. Its components of decentralization, anonymity and irreversibility only add to crypto’s appeal
A working communication mechanism is a helpful feature, whose one of the many functions is to create a comprehensive list of recommended lots to bid for auction participants. This smart system can skilfully monitor data, analyse it, compile statistics on buyers’ preferences and make reports concerning the market situation
Marketing techniques are numerous, and their ultimate goal is a stable and profitable development of business. But it is necessary to remember that different tools lead in different directions. Some improve sales, others create a positive image of the platform, help to find customers or evaluate the effectiveness of sales
This component allows you to define a bidding step and fees charged for each. You can even set it for auction holders to manage bid configuration in a manner best suited for their bidding. This flexibility grants your project means to adjust itself to clients’ behaviour and future needs of auction audience
Gamification is a relatively novel phenomenon in IT companies, yet known since the psychological research of the 90s. The introduction of game mechanics can dispel the gloom of mundane bidding and turn it into an amusing activity. Gamification in auctions can be about all sorts of achievements, experience badges and leaderboards
Information about bidding procedures is overt. Payments are safe and fair, with all details about commissions and delays clearly stated. Before making their way to the platform, suppliers and customers get verified. User information remains intact and its safety is ensured by the rules of data protection
every time a customer reveals a price, it comes down by a specified amount.
to immediately attract customers, a preset price is usually equal or lower to the market price of the item in question.
to see a price and decide on a purchase, a customer bids. Every bid requires a fixed fee to be paid.
a product goes to a bidder who becomes the first who agrees to purchase at a current price.
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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My first impression of the Merkeleon company was good and so far my guess has been correct. We are still working on the evaluation and understanding of the user’s real needs and are happy to have such a long term relation with Merkeleon. We are satisfied with the smoothness, look and feel of the software and have plans to develop our platform to get the complete competitive solution.
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.
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.
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.
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.
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.
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.
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.
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.