A reverse auction is a type of auction where the roles of buyers and sellers are reversed. In this process, multiple sellers compete to offer the lowest price for a product or service that a buyer needs. Instead of bidding higher, sellers lower their prices in real-time to attract the buyer's attention. This method is commonly used in procurement and sourcing, allowing organizations to save money by encouraging competition among suppliers. Reverse auctions can be conducted online, making it easier for buyers to compare offers and select the best deal from various vendors or service providers.