# Auctions overview

Auctions provide a structured way to source high-cost or high-volume purchases while encouraging competitive supplier participation. Auctions simplify negotiations, drive competitive pricing, and improve supplier engagement by allowing suppliers to bid for your business in real time.

{% hint style="info" %}
**Ready to run auctions?**: If you are interested in using auctions, contact your Fairmarkit Customer Success Manager. You'll need to specify which auction types you want to use.
{% endhint %}

### How do auctions work? <a href="#howdoauctionswork" id="howdoauctionswork"></a>

This depends on the type of auction you select. You have three options that have working variations.

#### [Dutch auction](/buyers/auctions/dutch-auction.md)

The auction price starts low and gradually increases. The first supplier to accept the price wins.

#### [English (classic) auction](/buyers/auctions/english-classic-auction.md)

Suppliers compete by submitting lower prices. At the end of the event, the supplier with the lowest bid wins. This is the original reverse auction experience.

#### [Japanese auction](/buyers/auctions/japanese-auction.md)

The auction starts at the highest price you'll pay and decreases gradually over time. At each decrease, suppliers can choose to stay or leave. The last supplier remaining wins.

### When to use an auction <a href="#whentouseanauction" id="whentouseanauction"></a>

Auctions are ideal when:

* You're purchasing standardized items or services (e.g., office supplies, raw materials, transportation).
* There’s a high savings opportunity or a high-value purchase.
* You’re working with vetted suppliers who are ready to compete.

### When to avoid auctions <a href="#whentoavoidauctions" id="whentoavoidauctions"></a>

Avoid auctions for unique or highly customized products or services, as they may not generate meaningful competition.

### Before your auction <a href="#beforeyourauction" id="beforeyourauction"></a>

To set your auction up for success:

* **Prepare suppliers**: Confirm that selected suppliers are familiar with the auction process and ready to participate.
* **Give prep time**: Ensure suppliers have time to respond and secure internal approvals for competitive bids.
* **Use strategically**: Use auction strategically. For example, after running a request for quote (RFQ) event, you can invite a shortlist of suppliers to participate in an auction to achieve the best price.

### Basic workflow <a href="#basicworkflow" id="basicworkflow"></a>

* **Create an auction**: Add item details, invite suppliers, and set auction settings.
* **Run the auction**: Depending on the auction type, suppliers will submit bids or choose to accept or decline the price.
* **Award the auction**: Review supplier responses after the event closes and select the winner.


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