Reverse Auctions Can Save You Money
Where standard auctions allow sellers to offer products to the highest bidder, reverse auctions allow buyers to post an ad for a needed item which sellers then offer for increasingly lower prices. The seller that offers the product for the lowest cost typically wins the auction.
Oltiby.com is one such reverse auction site. Founded in 2005, the site has managed to attract a steady stream of users without a large publicity budget. While it doesn't have the traffic that eBay does, new reverse auctions are posted daily, with electronics such as laptop computers and digital cameras being popular auction items. Posting an ad is free, but if you make a successful purchase, Oltiby does charge a fee which ranges from 5.25 percent to 2.75 percent of the purchase price.
Shopriot is another reverse auction site with a devoted following. Popular auction requests include fashion accessories, beauty products, child care products such as strollers and baby furniture, as well as electronics. Shopriot has recently partnered with Amazon.com and Overstock so expect to see an explosion of site traffic as these connections are exploited.
Businesses have been using reverse auctions to save money and control costs for the last decade, but saving money using a reverse auction is not always guaranteed. In some rare cases, buyers actually lose money on the transaction and in some cases they pay the same as a traditional auction. Savings can be as high as 20 percent, but are more often five to ten percent over the retail cost of an item.
To save money using an online reverse auction, remember to ask sellers to include shipping in the cost of their bids. Figure in the amount of auction fees you will be expected to pay when setting your initial price. If you fail to consider shipping and buying fees, you could end up losing money. Also remember not to set your initial price too low. If your initial price is well below market value for your item, you will receive few bids, or possibly no bids at all.
Published by Kari Livingston
Kari Livingston is a freelancer writer living and loving life in the foothills of the Arkansas Ozarks. She specializes in local restaurants, attractions and family events. Her work has appeared on HubPages,... View profile
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- Reverse auctions allow buyers to post requests and starting prices for merchandise.
- Sellers compete for buyer's business, forcing prices down.
- Shipping costs and fees should be considered when posting initial price request.
1 Comments
Post a CommentThanks for this! I had not heard of these sites before.
Sophie