A reverse auction is an auction principle that is used in e-auctions
. At the beginning, a maximum price for a clearly defined good (quality and specification) and quantity is set by the provider. After that, the participating bidders of this good can bid for the lowest price. This means that, unlike in a traditional auction, prices fall in the bidding process until none of the bidders is willing to continue bidding an even lower price. The reverse auction is an effective way to get the best possible price from your suppliers.