In a reverse auction the price goes down, not up. Bidders compete by offering a lower price for an item, and the lowest bid at the close wins the right to buy it at that price. This guide explains how reverse auctions work in BidKing, the settings that protect you as the seller, and when the format makes sense.
Reverse vs Dutch: the difference people mix up
- A Dutch auction is run by the seller: the price starts high and drops on a clock, and the first person to accept the current price buys. Bidders don't bid against each other.
- A reverse auction, as BidKing runs it, is driven by the bidders: each bid has to undercut the current lowest bid, and the lowest bid when the time runs out wins.
BidKing supports reverse auctions. It doesn't offer Dutch auctions.
How a reverse lot works in BidKing
Reverse auctions are in every BidKing edition. On the auction form you set:
- Starting price. The first bid has to be below it.
- Lowest price (required). The lowest price the lot will sell for. It must be below the starting price, and once a bid has been placed it can't be raised above that bid.
- Bid step (optional). Each new bid must undercut the current lowest bid by at least this much. With no step set, any lower amount counts.
- Bid fee (optional), charged from the bidder's wallet for each bid.
- Start and end time.
How bidding plays out:
- The lowest bid is shown on the lot as bidding goes on, like the current price on an English auction.
- A bid is refused if it doesn't undercut by the step, or if it goes below the lowest price. The bidder is told why and what they can bid.
- When the lowest bid reaches the lowest price, bidding closes, because no lower bid is possible.
- At the close, the lowest bidder wins and pays their bid through the normal cart and checkout. A scheduled job declares the winner, so cron must be running.
Reverse lots have no reserve, because the lowest price already does that job.
What this means in practice
Because bidders compete to go lower, an active reverse lot tends to end at or near its lowest price. Set the lowest price at a figure you're genuinely happy to sell for, and treat everything above it as upside if bidding stops early.
That makes the format a good fit for:
- Promotions and clearance. A "how low will it go" lot draws attention, and you've fixed your minimum in advance.
- Engagement lots on a site that already runs English auctions, as a change of pace.
It's a poor fit for selling an item at its full value. An English auction does that better.
Bid fees on reverse lots
With a bid fee, every bid costs money, win or lose, and the fees help pay for the discount. That turns the lot into a paid-bid format, closer to a penny auction than to a sale. State the fee clearly on every lot, and never present it as a way to make money. In some places, paid bids for a chance at a discounted item raise legal questions. The operator is responsible for compliance, so check with a local lawyer before charging bid fees. BidKing limits sign-up to 18 and over.
Late bids and automatic bids
- Anti-sniping (BidKing Pro) works on reverse lots: a bid close to the end extends the lot, so others can respond. See anti-sniping and proxy bidding.
- The Auto-Bidder (BidKing Pro) supports reverse lots too. A bidder sets the lowest price they're willing to go to, and the system undercuts on their behalf when someone bids lower.
Common questions
What is a reverse auction?
An auction where bidders offer lower prices and the lowest bid at the close wins. In BidKing, the winner buys the item at their bid.
Can the first bidder take a reverse lot for almost nothing?
No. Every reverse lot has a required lowest price, and bids below it are refused. When the lowest bid reaches it, bidding closes.
Is a reverse auction the same as a Dutch auction?
No. In a Dutch auction the seller lowers the price over time until someone accepts. In a reverse auction bidders undercut each other. BidKing supports reverse auctions, not Dutch.
Do reverse lots have a reserve?
No. The required lowest price does the same job: the lot never sells below it.