Scoring Auction

In a Scoring Auction marketplace, bids are assessed based on predetermined criteria like price, quality, and delivery terms.

Understanding Scoring Auction within a marketplace

In a scoring auction within a marketplace, participant bids are evaluated based on specific criteria, such as price, quality, and delivery terms. Each criterion is assigned a predetermined weight, and bidders are ranked according to their total scores, allowing for a more comprehensive assessment beyond the bid amount to determine the winning bid.

The process:

Step 1

Trade set up & supplier registration

Sellers list items on the online platform, and the auction organiser defines scoring criteria specifying the attributes or factors bidders will score.

Step 2

Bidder evaluation

Bidders review items and assign scores based on the established criteria, expressing preferences and perceived values for different attributes.

Step 3

Scoring bidding process

Participants place bids in real-time, indicating both monetary offers and scores for the specified attributes, creating a combined bid amount. This could be made in multiple rounds.

Step 4

Score calculation

The platform calculates final scores for each item, considering bidder-assigned scores, and determines the winner based on a combination of the highest bid amount and scores.

Step 5

Winner Notification & Transaction Completion

The winning bidder is notified, completes the payment, and finalises the transaction, leading to item delivery or fulfilment according to the platform's terms.

Why you might choose a Scoring Auction for your marketplace?

A Scoring Auction is advantageous for a marketplace when the valuation of items involves multiple attributes, allowing bidders to express nuanced preferences and considerations beyond monetary value.

Invite unlimited participants

Nuanced preference expression for multiple attributes

Score in real-time or asynchronously with multiple parties

Efficient, digital process

Clients where we have applied a Scoring Auction

Climate Impact X Logo

Maritime and supply chain management marketplace to match supply and demand electronically.

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Christie's Logo

Deployment of machine learning trade optimisation algorithm for GDT Markets.

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CarNext Logo

A 21st century approach to North American cattle trading - digitising an analogue agricultural market.

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Christie's Logo

European repo trading platform for the financial services market.

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