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startup_tutorial_and_checklist:feature_configuration:auction_specific_features:types_of_auctions:dutch_auction

Dutch Auctions

This auction type allows for the sale of individual quantities of an auction but the price that everyone will pay for their items is not determined until the auction closes. Basically all winners will pay the same price but the highest bidder will be first assured of winning their quantity bid on of the auction. This process loops through the next highest bidder where they win their quantity bid on and so on until all items are "won". The last winning bidder may not win the full quantity they bid on. They are the last winning bidder because their quantity is equal to or greater than the quantity left after all other higher bidding winners have won their quantity bid on. The bid amount of the last winning bidder is what all winning bidders pay for each item. Note that the bid if for one of the total quantity and any winners must multiply their quantity by the final winning bid to know the amount they owe the seller.

Highlights of this feature:

  • Can charge final fees on each items of the quantity sold.
  • All winners pay the same lowest winning bid
  • Each bidder can bid on the amount of the total quantity they want. If they won they would owe the winning bid times the number of items they won
  • Each winning bidder can leave a feedback for the seller. The seller can leave feedback for each winning bidder.
  • There is only straight bidding in a dutch auction. There is no proxy bidding.
  • This auction type does not work with the seller to buyer payment gateway

Where is This Feature Managed in the Software?

You would allow the dutch auction type site wide here:

LISTING SETUP > GENERAL SETTINGS > Allow Dutch Auctions

Once you have enabled the dutch auction type in the above admin tool it becomes a choice for the auction type that can be chosen in the auction collection details section of the place an auction process. You'll now see dutch in the auction type field below standard.

Things to Know When Managing This Feature

  • Straight bidding only
  • This auction type is basically useless for quantities of one.
startup_tutorial_and_checklist/feature_configuration/auction_specific_features/types_of_auctions/dutch_auction.txt · Last modified: 2014/09/25 16:55 (external edit)