What Is a Japanese Auction?
A Japanese auction is a dynamic bidding format where the price decreases step-by-step, and you must decide whether to accept each new price step to stay in the competition. Every time the price drops, you will see a countdown and must choose to continue or exit.
If you accept the step, you remain in the auction.
If you decline or miss the step, you automatically exit and cannot rejoin.
Important:
To remain competitive, you should accept as many price steps as possible. The suppliers who stay in longest have the strongest chance of winning.
💡 From your perspective as a supplier:
You monitor each new, lower price step.
You click Accept when you agree to continue at that price.
Your acceptance becomes binding for that step.
Staying active longer increases your competitive position.
Step-by-step guide to participating in a Japanese auction
Respond to bidder agreement
If a bidder agreement is included in your auction, it will be the first screen you encounter upon entering the project. There, you will be prompted to review the terms, requirements, or conditions outlined by the sourcing team.
If you agree, you are legally acknowledging and accepting the terms set forth, thereby gaining access to the complete auction. If you decline, you will no longer be able to participate in the auction.
Chat
If you have any questions on the bidder agreement or later on during the auction, you can use the chat to communicate with the buyer.
Preview auction
After accepting the bidder agreement(s), if one is required for your auction, you will enter the preview stage, where you can view the auction start time and the items that will be auctioned.
Bid in the live auction
When the auction starts, the interface displays:
The current bid
A countdown timer showing how long you have to accept the current bid
To submit your bid:
Click Accept bid.
A confirmation dialog will appear asking you to confirm your choice.
Once confirmed, your offer becomes binding and cannot be withdrawn.
The status changes to Offer pending until the current time step ends.
How to Stay Competitive in a Japanese Auction
In a Japanese auction, the price decreases step-by-step. To remain in the auction and stay competitive you must continue accepting each price step as long as possible.
Each time you click Accept, you signal that you are still willing to offer that price.
If you stop accepting steps:
You exit the auction
You cannot rejoin
The remaining suppliers continue competing without you
⚠️ Important: The supplier who accepts the most steps stays in the auction longest, which strongly increases their chances of winning.
What happens if you miss a step?
Depending on the buyer’s settings:
You may be removed immediately, or
You may be allowed to miss a limited number of steps (the buyer chooses this rule)
💡 Tip: Always monitor the countdown timer. Each step has a short response time.
Best practice for participating in a Japanese Auction
Stay focused and respond quickly
Accept every step you feel comfortable with
Avoid waiting until the last seconds
Keep your internet connection stable
Make sure you have internal approval for your minimum acceptable price before the auction starts
This ensures you stay active as long as possible and remain competitive.
Paused auction
The buyer may pause the auction if, for example, some suppliers experience connectivity issues. During this pause, you will be unable to place bids and will see the following screen until the buyer resumes the auction.
After the auction
Once the auction is over, you will see the following screen and the buyer will reach out to you regarding next steps.
Frequently asked questions
How do I access technical support during the auction?
How do I access technical support during the auction?
Click on the message bubble on the bottom right corner of the screen and select Ask a question.