Introduction
After 15 years in procurement and running hundreds of eAuctions, I’ve noticed one thing: before you can implement eAuctions successfully, you need to unlearn a few old beliefs.
Too often, eAuctions get dismissed as:
- A race to the bottom
- Unethical for suppliers
- Only about price
- Only useful for low-value, tail-spend categories
And honestly, we can’t blame people for thinking that way. Twenty-five years ago, it was true. But procurement has evolved - and so have eAuctions. Thanks to leaders like Jacob Gorm Larsen and Janice Marquardt, the industry has learned that modern eAuctions are powerful, fair, and strategic.
Let’s bust the three most common myths.
Myth 1: “eAuctions Are Just About Price”
The classic misconception: eAuctions force suppliers into a race to the bottom, squeezing margins and lowering quality.
Reality: eAuctions Are About Total Value
Modern eAuction formats are designed around total cost of ownership and multi-criteria evaluation. That means buyers can include:
- Quality requirements
- Delivery terms
- Sustainability criteria
- Compliance standards
Suppliers aren’t just bidding on price - they’re competing on the full value they bring.
Myth 2: “Suppliers Hate It”
The old belief: eAuctions are aggressive, impersonal, and ruin supplier relationships.
Reality: Suppliers Value Fairness
When designed properly, eAuctions are more transparent than traditional negotiations:
- Everyone competes on equal terms
- Clear rules prevent hidden favoritism
- Suppliers gain visibility on where they stand
At CROWN Procurement, we’ve seen suppliers choose eAuctions over traditional negotiations after being onboarded and trained. They appreciate the clarity and fairness.
70% less time negotiating, more time building partnerships.
Myth 3: “eAuctions Are Only for Tail Spend”
The perception: eAuctions only work for low-value, non-strategic categories.
Reality: Strategic Categories Perform Exceptionally Well
Leaders in FMCG, logistics, packaging, and even CAPEX are already proving otherwise.
- FMCG leaders allocate 20–30% of spend to eAuctions
- Strategic categories regularly deliver impressive savings and efficiency
- Complex negotiations that once took weeks can now be completed in an hour
The Real Impact of eAuctions
When implemented strategically, eAuctions lead to:
- 10–15% cost savings
- Faster negotiations (hours instead of weeks)
- More trust and transparency between buyers and suppliers
- Smarter, data-driven decisions
At CROWN Procurement, we believe the future of negotiation isn’t about bargaining harder.
It’s about designing better processes - ones that are fair, transparent, and value-driven.
Final Thoughts
The myths around eAuctions are outdated. In 2025, eAuctions are:
- About total value, not just price
- Trusted by suppliers who value fairness
- Effective for both tactical and strategic categories
Ready to explore what eAuctions can do for your procurement strategy?
At CROWN, we deliver eAuctions as a 360° managed service - from strategy and supplier onboarding to execution and results.
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