Suppliers are advised to determine if a value proposition exists for them that would warrant their participation.

Some have characterized reverse auctions as a technologically-assisted form of zero-sum power-based bargaining, or as "going in reverse" with respect to developing buyer-seller relationships, collaboration, and purchasing process improvement. Reverse auctions have also been criticized as "bid shopping" - when a buyer uses a supplier's bid to obtain lower prices from other suppliers.

Suppliers seeking to avoid reverse auctions can create unique intellectual property, expand the value propositions for its customers by creating new products and services, or seek to extend or improve collaborative activities with their customers.

Reverse auctions used in industrial business-to-business procurement and spend management activities remain controversial, both within buying organizations, among suppliers, and among the academics who study them. As such, buyers considering the use of reverse auctions should carefully evaluate all available information, both favorable and unfavorable, to ensure that informed business decisions are made.

Current State

Reverse auctions (also becoming known as service auctions) are undergoing a resurgence at present (9/2008), as evidenced by a number of service auction sites for freelancers (e.g. eLance.com, guru.com, scriptLance.com) that are doing a significant volume of business both in number of projects and amount of money spent (20,000 projects in the last 30 days and over $100 million spent since 2006 according to eLance's website). There are narrow scope sites, such as those specializing in programming, technical writing and other professional, desk-based work (eLance.com, guru.com) or in home improvement and construction work, e.g. blauarbeit.de and eGenie.co.uk. Preserval Marketplace introduced reverse auction into carbon credits trading industry 10/2008. A broad scope site, FlatDoor.com, covers all types of work in any part of the world, including volunteer projects for non-profit organizations.