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.
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.
Bidders review items and assign scores based on the established criteria, expressing preferences and perceived values for different attributes.
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.
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.
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
Maritime and supply chain management marketplace to match supply and demand electronically.