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Online Reverse Auctions: Challenges and Best Practices

  • Tobias Schoenherr
Chapter

Abstract

There were several challenges in the early years of online reverse auctions, and significant learning had to occur. This chapter focuses on these challenges, and offers a range of best practices in order to manage them. Specific aspects emphasized include the importance of having the right bid package, the importance of preparation, the importance of education and training, and the move of companies toward self-proficiency; tied to this was also the role played by the online auction provider and how they changed over the years in terms of their value-added services—the evolution of their business model will be reviewed. The chapter also introduces a set of common myths that were circulated in the early years, coupled with advice on how to not fall victim to them. Lastly, an illustrative example of a successful online reverse auction implementation is provided.

Keywords

Online reverse auctions Challenges Best practices Bid package Item and bundle characteristics Preparation Education and training Online auction provider Myths Implementation 

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Copyright information

© The Author(s) 2019

Authors and Affiliations

  • Tobias Schoenherr
    • 1
  1. 1.Broad College of BusinessMichigan State UniversityEast LansingUSA

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