Types of auctions explained
"Auction" isn't one thing. English, Dutch, sealed-bid and live auctions each move price in a different direction and reward different behaviour. Choosing the right one is the single biggest lever on how a sale performs. Here's each in plain English, and when to use it.
By the BidWright team · Auction software studio
English (timed / ascending)
The one most people picture: the price goes up. Bidders compete, each topping the last, and the highest bid when the clock runs out wins — as long as it clears the reserve. Online, it's powered by proxy bidding and soft close so the genuine top bidder wins, not the fastest. It's the default for vehicles, property and estate sales because it maximises competitive tension.
→ Timed / English auction software
Dutch (reverse / descending)
The mirror image: the price starts high and falls until the first buyer accepts. There's no bidding war — waiting gets you a lower price, but someone else might grab it first. That tension makes Dutch auctions fast, which is why they suit clearance, perishable goods and high volume. With multi-quantity lots, many buyers can take units at the live price until stock runs out.
→ Dutch / reverse auction software
Sealed bid (highest or lowest wins)
Everyone submits a confidential bid; nobody sees the others until close. Two variants matter:
Highest wins
The best secret offer takes the lot, with the reserve acting as a minimum. Ideal for premium, sensitive or discreet sales where you don't want an open bidding war.
Lowest wins
The cheapest secret offer wins, with the reserve acting as a maximum. This is how tenders and procurement work — suppliers compete on price without seeing each other.
Live (automated)
A live auction recreates the saleroom: lots are presented and called in real time — "who'll open?", active bidding, going once, going twice, sold. BidWright runs that cadence automatically, with an 8-second silence timer that resets on every bid and a dynamic bid ladder, so online and in-room buyers compete together without a human caller. It's the natural fit for livestock and marquee sales.
→ Live auction software · Community live (scheduled regional)
Quick comparison
| Type | Price moves | Winner | Best for |
|---|---|---|---|
| English / timed | Up | Highest bid at close | Most sales; price discovery |
| Dutch / reverse | Down | First to accept | Clearance, volume, speed |
| Sealed — highest | Hidden | Best secret bid | Premium, discreet sales |
| Sealed — lowest | Hidden | Lowest secret bid | Tenders, procurement |
| Live (automated) | Up, called live | Highest at "sold" | Saleroom feel online |