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Data Protection PolicyBidding System

The BuyFair B2B trading platform allows a Seller to sell goods to multiple buyers by subdividing the total number of goods offered by the Seller between bidders.

Bidders may put in bids that include the following variable

  • Price
  • Minimum number of goods that they wish to buy
  • Maximum number of goods that they wish to buy

BuyFair’s proprietary trading system works as follows:-

  • It will never allow a price to be bid that is below the reserved price
  • Its principal aim is to ensure that the Seller sells all of its goods put on the platform so as to achieve the greatest return (The Principal Aim)
  • Where the bid at the highest price offers to buy all the goods on sale, that bidder will win the auction.
  • Where the bid at the highest price does not offer to buy all the goods on sale, then the remainder stock will be go to the bidder with the next highest price. If there is still stock remaining, it will go to the bidder with the third highest price etc. until all stock is sold.
  • In some cases, following the above rules may not ensure that the Principal Aim is achieved (eg see Example D). In such a case, the BuyFair proprietary trading system will adopt a methodology that ensures that the Principal Aim is achieved.

In the worked examples, the Seller is offering 1,000 glass tumblers on the BuyFair trading platform. There is a reserve price of £1. There are only two bidders, Bidder A and Bidder B

Example A

  • Bidder A offers to buy a minimum of 500 and a maximum of 1000 glass tumblers at £3 per tumbler.
  • Bidder B offers to buy a minimum of 500 and a maximum of 1000 glass tumblers at £4 per tumbler.
  • Bidder B is the successful bidder and there is a contract of sale and purchase between Seller and Bidder B for 1000 tumblers at £4 per tumbler.

Example B

  • Bidder A offers to buy a minimum of 500 and a maximum of 700 glass tumblers at £4 per tumbler.
  • Bidder B offers to buy a minimum of 300 and a maximum of 1000 glass tumblers at £3 per tumbler.
  • Bidder A will receive 700 tumblers at £4 per tumbler and Bidder B will receive 300 tumblers at £3 per tumbler.

Example C

  • Bidder A offers to buy a minimum of 200 and a maximum of 300 glass tumblers at £4 per tumbler
  • Bidder B offers to buy a minimum of 300 and a maximum of 500 tumblers at £3 per tumbler.
  • Bidder A will receive 300 glass tumblers at £4 per tumbler and Bidder B will receive 500 tumblers at £3 per tumbler. 200 glass tumblers will not be sold.

Example D

  • Bidder A offers to buy a minimum and maximum of 10 tumblers at £6 per tumbler
  • Bidder B offers to buy a minimum and maximum of 1000 tumblers at £5 per tumbler
  • Here, if the Buyfair bidding system accepted the offer of Bidder A of 10 tumblers at £6 per tumbler, it would mean that there were 990 tumblers left for Bidder B. This is below Bidder B’s minimum. So to accept the bid of Bidder A would rule out Bidder B’s offer and the Seller would only sell 10 tumblers at £6 per tumbler (total=£60). Here BuyFair’s system will reject the bid by Bidder A and accept the bid by Bidder B (total=£5000).
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