A forward auction is the most common type of auction and it consists of one seller, and many potential buyers. These are electronic auctions, which can be used by sellers to sell their items to several buyers. Sellers and buyers can be individuals, organizations etc. it is also called a consumer-to-consumer (C2C auction).
Items are commonly placed at the website for auction. Bidding starts at the minimum price acceptable to the seller and increases with every new bid by a fixed increment. Every bidder knows what price is being bid. They continuously bid for the items they are interested in. Eventually the buyer with highest bid acceptable to the seller wins.
This type of auction can take on several different forms, ranging from auctions that involve setting a minimum price and then entertaining bids that are above that minimum, or starting with a high price that is unlikely to be met and then accepting bids that are as close to that high price as possible. The uniqueness of this auction is that unlike other auctions; the seller retains the right to select any one of those bids, or to reject them all if none of the bids are considered acceptable.
Types Of Forward Auction: