GeM

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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