GeM reverse auction (RA) — how it works and how to bid smart
On GeM many bids end in a live reverse auction where you lower your price in real time. Here's how to play it without losing money.
4 min read · Free guide from Bidrove
What a reverse auction is
- After technical qualification, GeM may run a Reverse Auction (RA) — a live, time-bound round where sellers compete by lowering their price.
- Unlike a normal auction, the LOWEST price wins — prices go down, not up.
- You usually see your live rank (L1, L2…) but not competitors' exact prices.
Before the RA
- Decide your floor price in advance — the lowest you can go and still not lose money.
- Set a competitive starting bid, but never below that floor.
During the RA
- Watch your rank. If you're not L1 and the work is worth it, drop your price in small steps before the timer ends.
- Don't get pulled into a war below your cost — winning at a loss is worse than not winning.
- The clock often extends if someone bids in the last minutes; be ready for that.
After
- The L1 at close wins, and your last submitted price is binding — quote only what you can honour.
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