How Reverse Auction Works on GeM

Competition between bidders on GeM helps the government get the best deals on things. Online, it's free, quick, and fair. Tips for using it:

1. Initiation of Reverse Auction

• A two-way sale starts with someone wanting to buy something. Usually, the government.
• Users and how they should use it are already limited by rules.
• Price checks and work safety checks are common reasons for this.

2. Seller Participation

• GeM buyers who have signed up can only see the Reverse Auction.
• Non-eligible people are not allowed to join GeM.
• When more people bid on something, it costs less to buy it.

3. Currently, how prices are set

• Now is the time to buy things because time is running out.
• Buyers and sellers decide how much to charge based on what other sellers are offering.
• Insist that this small price drop. Everything is prepared and all set to go. This is necessary to make sure the game is fair.

4. Bidding stopped, and the winner was picked.

• The sale is only going on for a short time.
• Whichever person's price is the lowest (L1 buyer) is the winner?
• When our employees find the best deal, they make sure it's legal and safe to use.
• If everything looks good, the L1 buyer will get the deal approved.

Benefits of Reverse Auction in GeM

1. A huge drop in costs

• Many businesses charge various amounts for the same thing, which helps the government save a lot of money.
• Takes away dealers that aren't needed, which lowers the price of buying.

2. Being truthful and open

• Online, everything is seen and done.
• After writing everything down and checking it, everyone is more likely to be fair.

3. Efficiency & Speed

• Anytime between days and weeks, you can make this kind of sell. It takes minutes or hours.

• It's easier for everyone when checks are done automatically.

4. It increases the chance of a tough fight

• Buyers can be anyone who wants to sell.
• Others can sell to you, so they need to offer better deals.

5. Opportunities for small businesses

• Larger buyers can compete with Micro, Small, and Medium-Sized Businesses (MSMEs) in reverse bids.
• The government will work with businesses of all kinds. Things can be bought now by anyone.

When is it sensible to use GeM's reverse sale?

This is why it's useful in particular:

• This means getting assist or a lot of things.
• People who speak everyday English know exactly how to use words that mean the same thing.
• Multiple places let many people get what they need.

Key Considerations for Sellers in Reverse Auction

1. Some things need new plans and ideas, so that might not be the best way to buy them.

• Consider these things if you want to buy something at a public sale
• Start by learning what it can do.
• Before you bid, do some research on what the buyer's agent wants.
• Whatever you sell to GeM should really help them.

2. Give what other people say some though

• Watch the prices closely, as they might alter.
• Create a strategy for how you will change your bids to win and stay in the game.

3. Ask for too little money.

• Even if your price is the lowest, you can still make money.
• Do some research on the rules, taxes, and how to get there before you bid.
• Follow GeM's instructions.
• The rules must be followed before you can bid.
• Sending the right papers and seals is necessary for them to accept you.

5. Figure out how you'll ship and pay.

• Your price should be fair, and the work should be finished quickly.
• Make sure you have enough stock to follow the rules when you first open your business.

What could go wrong with sale items that can be returned?

The good and bad things about backward bids are as follows:

• There may be too many of them for prices to stay high, and businesses will close down.
• Quality-related carelessness: Some sellers may cut corners on quality to stay competitive.
• Using tools that let them bid might be hard for a small business right now.
• Planning how to set prices can go wrong if bids are changed at the last minute.
• Price things correctly if you want to sell them. Good things should be given and rules should be followed.
• This information can help you offer things for sale in GeM Reverse Auctions.
• Things are released every day. If you use backwards bids, watch out for potential problems with your business.
• Start your day early. Verify that you have all the things you need before you bid.
• Buyers won't pay the right amount or too little.
• With GeM tools, you can keep an eye on bids, what your competitors are doing, and market trends.
• Keep looking for real deals. Don't just bid once and then wait; take part in the entirety of the auction.

Conclusion

Anyone can get things for the government through GeM's backward sales. Anyone can do it, it's fair, and it doesn't cost much. You can also bet against other people. The government will give big work to companies that know how to bid, and follow the rules. If you want to do well in GeM, you need to learn how to win deals that don't go your way. Reverse bids will become an even more important way to save money, make things easier, and increase competition in the world of public procurement as the government keeps improving digital procurement.