Buying lots in reverse auction: how it works

The reverse auction, also called descending price auction, is a format in which the price of a lot starts high and drops over time until a buyer accepts it. The first one to say "I'll buy it" at the current price takes it, without upward bids or competing by offering more money.

If you buy return lots, liquidations or pallets to resell, this system can become your best ally… or a trap if you don't fully understand its rules. Below we explain how the reverse auction works step by step, with real examples, indicative figures and strategies so you can get the best possible price.

How exactly does a reverse auction work?

The mechanism is simple, but it's worth internalizing it well before participating. The typical process is as follows:

The seller lists the lot with a high starting price. For example, a pallet of Amazon returns with 200 items might start at €1,200.
The price drops automatically. Every certain interval (minutes, hours or days, depending on the platform) the price is reduced by a fixed percentage, for example 2% or 5% per round.
The first buyer who accepts the current price wins the lot. There are no bids or counteroffers: whoever clicks "buy" first at the current price takes it.
If no one buys, the price keeps dropping down to a set minimum or until the seller withdraws the lot.

The key is that you decide when to buy. The longer you wait, the cheaper the lot will be, but the risk of another buyer getting ahead of you also increases. It's a race of patience and nerves.

A practical example with numbers

Imagine a lot of 150 electronics return products valued at €3,000 (retail price). The seller lists it like this:

Round	Time elapsed	Lot price	Discount on starting price
Start	0 h	€900	0%
Round 1	2 h	€855	5%
Round 2	4 h	€810	10%
Round 3	6 h	€765	15%
Round 4	8 h	€720	20%
Round 5	10 h	€675	25%

If you buy in round 3, you pay €765 for merchandise valued at €3,000, that is, a 74.5% discount on the RRP. If you wait until round 5, the discount goes up, but someone else may beat you to it.

How is it different from a normal auction?

Many people confuse both formats. The difference is radical:

Ascending auction (the classic one): the price goes up because several buyers bid upward. The highest bidder wins, and it usually ends in the last seconds with "sniping".
Reverse or descending auction: the price drops on its own. You don't compete against others by offering more, but against the clock and against other buyers' decisions. The fastest to accept a price that suits them wins.

In a reverse auction there is no bidding war, which makes it faster and simpler, but it requires being clear beforehand about how much you are willing to pay. If you hesitate, someone else buys for you.

Why is it used so much in the sale of lots and liquidations?

Lot platforms, Amazon returns, store surplus and judicial liquidations have adopted this model for several reasons:

It clears stock fast. Sellers need to rotate merchandise and free up warehouse space. The descending price guarantees that the lot ends up sold sooner or later.
It attracts professional buyers. Resellers and small businesses that know the real value of the merchandise know when to step in.
It creates urgency. The feeling of "if I don't buy now, I'll lose it" speeds up the decision.
Total transparency. The price is public and drops the same for everyone; there are no hidden bids.

In Spain, platforms such as LotesOnline.es gather offers of this type coming from returns of large marketplaces, store liquidations and business closures. The buyer can filter by category, estimated value and condition of the merchandise.

How much can I really save with the descending price?

The savings depend on the moment you accept the price and on the demand for the lot. As an indicative reference in the Spanish market:

Highly demanded lots (electronics, telephony, branded tools): they usually sell in the first rounds, with discounts of 20% to 40% on the starting price.
Medium-demand lots (home, textiles, toys): they close with discounts of 40% to 60%.
Low-demand lots (niche products, last season, bulky items): they can reach discounts of 70% to 85% before someone buys them.

Translated into euros: a pallet of Amazon returns with 200 items and an RRP value of €4,000 can go on sale with an initial price of €1,000. If it closes at 50% off, you buy it for €500. If you have to resell at 40% of the RRP (€1,600) and assume 20% of defective items, the margin is still interesting, but it's worth calculating it case by case.

Factors that affect the final price

Condition of the merchandise: new, refurbished, untested return, with defects.
Category: electronics sells faster and with less discount; textiles and bazaar goods take longer.
Lot volume: large pallets (500+ units) usually drop more in price because fewer buyers can handle them.
Logistics costs: shipping, storage and handling. A cheap lot but with €300 shipping may stop being profitable.

What strategies should you follow to bid in a reverse auction?

Here are the tips that professional buyers apply:

Set your maximum price before you start. Calculate how much the merchandise is worth to you (not the RRP, but what you can recover by reselling) and subtract costs. That is your ceiling.
Study the rate of decline. If it drops 5% every 2 hours, you know when it will reach your target price. Don't rush.
Watch the competition. If you see that other similar lots sell in the first round, you may need to be more aggressive.
Don't buy on impulse. The fear of losing the lot is the biggest enemy. If the price doesn't suit you yet, wait.
Check the description carefully. "Untested returns" is not the same as "new product with damaged packaging". The real condition determines the margin.
Calculate the margin realistically. Assume a percentage of unsellable items (between 10% and 30% depending on the type of lot) and subtract it from your forecasts.

Common mistakes you should avoid

Accepting the starting price for fear that someone else will buy it. It almost always drops.
Not reading the shipping and return conditions. Some lots do not allow returns.
Buying lots you can't store. A pallet takes up space and has to be managed.
Forgetting hidden costs: VAT, postage, packaging, sorting time.

Where to find reverse auctions of lots in Spain?

More and more Spanish platforms offer this format. The most common ones work with:

Amazon and other marketplace returns: mixed lots or by category.
Store liquidations: closures, surplus, last season.
Distributor surplus: new products with damaged packaging.
Company and insolvency auctions: seized or judicial liquidation merchandise.

On LotesOnline.es you can compare reverse auction offers from different suppliers, see the current price, the price drop history and the estimated value of the merchandise. That allows you to decide with data in hand instead of blindly.

Conclusion: patience and calculation, the keys to the descending price

The reverse auction is a very attractive format for buying return and liquidation lots: there are no upward bids, the price drops on its own and you decide when to step in. But it's not magic. It requires knowing the real value of the merchandise, calculating costs and margins, and having the cold blood to wait until the price reaches your target without getting carried away by urgency.

If you apply these strategies, you can get lots with discounts of 50% to 80% on the starting price and build a profitable resale business. If you buy on impulse, on the other hand, you'll end up paying too much for merchandise you can't move.

Ready to find your next lot? Go to the LotesOnline.es comparator, filter by reverse auction and compare prices, categories and estimated value. The next bargain may be dropping in price right now.