Compare bidding and auction.

The major differences between bidding and auction are as follows −


  • Buyer buys the commodity by offering a bid/price.

  • It includes competitive offer for a product/service.

  • It shows value/demand for a product/service.

  • The main aim is to win the contract/bid that put for an auction.

  • It creates competition to increase demand for a commodity.

  • For organisations, bids are allotted for lower bid with proper quotations and paper works.


  • It is held to get better value for goods/service sold.

  • It is the process of buying/selling.

  • Bidders are allowed to place the bid and highest bidder will be allotted the goods/services.

  • The main aim is to get best/highest price for a good/service.

  • The marketing plan is to increase the commodity value.

  • The companies/organisations will auction their commodity to determine its value and demand.