Have you ever heard of Dutch auctions? They first appeared at flower markets in Denmark, around the year 1600. They are a very interesting and unusual take on the auction process. Would you like to know how they are different from Wellbid?
At traditional auctions — such as the ones held by Wellbid — you expect the price to increase with time. At Dutch auctions, it’s just the opposite: as the clock counts down, the price of the item… drops! For this reason, they are sometimes called “clock auctions.”
This type of auction can be most commonly encountered at flower and produce markets, where there is no shortage of potential buyers and the sellers want to get rid of their merchandise while it is still fresh. It is also possible to come across Dutch auctions online — albeit with a different lineup of products on offer. Our auctions are online-only, of course, and their duration time is not predetermined.
At a Dutch auction, the seller sets the reserve price and the opening price. Only the latter is made known. The sale price goes down steadily, in decrements of a few percent — the participants do not influence this process in any way. All they can do is observe and try to keep themselves from bidding as long as possible. The first person to accept the sale price wins the auction. In contrast, on Wellbid there is no reserve price and all auctions start at $0. Also, it is the users who decide when the price goes up, by pressing the “Bid” button.
At a Dutch auction, waiting for the price to drop really low is very risky. Simply put, the longer an auction continues, the greater the interest. Interestingly, a similar thing happens on Wellbid. Many users prefer to wait and watch first, and only join in once the auction has already been going on for a while.
Which approach do you like better: penny auctions or Dutch auctions? One thing is certain — each type can create a lot of excitement.