Reverse procurement and auctions for consumers

Web-based bid invitation platforms and reverse auctions are increasingly used by consumers for the procurement of goods and services. An empirical examination shows that with B-2-C these procurement methods generate considerable benefits for the consumer:

–	⊎ Reverse auctions and bid invitation platforms generate high consumer surplus in the procurement of general and crafts services.
–	⊎ The level of this consumer surplus is affected by the number of bidders. The duration of the auction and the starting price are less important.
–	⊎ In the painting business prices are considerably lower than with traditional procurement channels.
–	⊎ On bid invitation platforms, in most cases (> 55%) the bids with the lowest price are chosen.