Capacity Auction
Power your marketplace with Capacity Auction technology: Optimise resource allocation and drive revenue on your marketplace
Listing creation
NovaFori platform supports a range of product types with flexible attributes, descriptions, and images for accurate representation. Sellers can customise auctions to fit their unique needs by setting product supply, price points, number and duration of rounds, and bidding rules.
Bid history & allocation display
Bidders can view their past bids and indicative allocations, enabling them to refine future bids. This ensures they receive the necessary quantities at the anticipated price, leveraging insights from previous rounds for optimal strategy adjustment.
Demand overview tracker (DOT)
Bidders can track their progress from one round to the next, directly comparing their positions against other participants.
Algorithmic market clearance (AMC)
The platform determines the market-clearing price and allocates resources based on supply and demand dynamics during the auction, ensuring fairness and efficiency.
Multiline quantity-price bidding
Enable bidders to submit minimum, maximum, and mid-range quantities they are willing to buy, enhancing flexibility in bidding strategies.
Data Science tools and analytics
Analytics reporting tools and analytics capabilities to analyse scoring trends and performance metrics.
Understanding Capacity Auction within a marketplace
The Capacity Auction model enables sellers to offer available resources and buyers to bid for the quantity or capacity they require, with the auction determining the allocation of resources based on bids and predefined rules, achieving the optimal price per unit.
- Maximise total value gain across buyers and sellers
- Simplify the decision processes faced by buyers
- Enable buyers and sellers to reflect their degree of flexibility over the quantities they want allocated.
The process:
Auction set up
The auctioneer or marketplace operator sets up the auction by defining the product quantity, bidding rounds, duration, and rules. The matching engine can be optimised for highest price, widest distribution, or maximum product sales.
Bidding process & price increase
Buyers bid for quantity/price per unit. The platform accepts bids from the lowest price, gradually increasing until the needed capacity is met or the maximum price is reached. After bidding, a matching engine determines the final price & allocates supply to successful bidders.
Auction closure
After the auction, the platform confirms each bidder’s allocation and final price per unit. Buyers pay for their allocations, and orders are fulfilled. The platform may also offer additional services like invoicing, shipping, tax calculations, and payment processing.
Clients where we have used a Capacity Auction
A global marketplace and exchange for voluntary carbon credits to drive environmental impact at scale.