Reverse auctions gained popularity with the emergence of internet-based online auction tools that enabled multiple sellers to connect with a buyer on a real-time basis. Today, reverse auctions are used by large corporations and government entities as a competitive procurement method for raw materials supplies, product supplies and services like accounting and customer service.
Since online portals are able to connect buyers and sellers in real time, reverse auction typically occurs online where multiple sellers gather to sell their product/services to a buyer.
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