how does ebay bidding work

If you’re bidding on a collectible, invest in an up-to-date price guide (or reference one online). Even though he specified a $150 maximum bid, the bidding never got that high.). If you can make the highest bid with just 20 seconds left, most likely you’ll win. Shop now. ). And by bidding your maximum right away, you guarantee that you won’t get carried away and pay too much at the end of a heated competition. eBay's bidding process works like this: You enter the maximum amount you are willing to pay for the item, and eBay bids incrementally on your behalf until the bidding reaches the maximum amount you entered. Once you set up automatic bidding, you can stay ahead of the competition for an item without needing to be on the eBay site. Here’s how making an automatic bid works: Suppose that Steve, Alyson, and I (i.e. Since there are no other bids for hers to compete against besides the opening one, the current highest bid for the item — and Alyson’s current bid — becomes $11 (i.e. EBay is a massive … The longer you can hold off bidding before the auction ends, the better. How buying works There are two ways to buy on eBay. On some listings you can also make an offer of the price you’d like to pay. It is true that if two or more people are bidding for the same item, the bids can automatically (and quickly) rocket up until they max out. > How to Return an Item on eBay for a Refund. This means that if you end up being the high bidder in an auction, you are under a much stricter obligation to purchase and pay for the item that you won, as opposed to if you simply purchased the item from a seller at a fixed price. In order to ensure that buyers get the item for the lowest possible amount, eBay uses a system referred to as automatic incremental bidding. After you’ve browsed through or searched the item listings and actually found something you’re interested in, it’s time to pony up and make a bid. If the item is sold for more than … > You also shouldn’t get upset if the bidding goes higher than your specified maximum; have the discipline to bid only as high as you initially thought the item was worth. eBay’s “maximum bid” is another term for proxy bidding, a form of automatic bidding. In this instance, each proxy automatically ups its bid in response to the last bid by the other proxy, which rapidly (seemingly instantaneously) increases the bid price until one of the proxies reaches its maximum bid level. You should bid an amount no higher and no lower than what the item is worth for you—and what you can afford. Instead, you only have to manually place a new bid if the current highest bid exceeds your maximum bid (or you can decide to not place another bid if you’re not willing to pay any more money for the item). The third bidder’s proxy responds with a bid of $115. Make it a point to shop around, and make your bid accordingly. eBay/Yahoo/Google. A snipe seeks to place the final bid in the last seconds of the auction. HOW EBAY AUCTIONS REALLY WORK eBay does not use an English Outcry auction format (bid and counterbid, going going gone to the last bidder at the full amount of the last bid) and you put yourself at a big disadvantage if you try to bid like it was such a format. Unless they state their reserve price in the listing, you won't know what it is until you either meet it or bid above it. While eBay does say a seller should complete a vehicle auction at the ending price, they do not have the ability to force a buyer to pay, or a seller to sell. How to set up automatic bidding. The bid increment is automatically calculated by eBay based on the current price of the item—the higher the price, the higher the bid increment, as shown in Table 3.1. The proxy software works in your favor to keep your final price as low as possible; don’t assume that just because you specified a price, the bidding will always rise to that level. How to Navigate eBay’s Categories. Get comfortable with that—and be glad the proxy software helped you stay within your limits. At this point, Alyson can place a new maximum bid, if she so desires. How, then, do you determine that an item is worth $40—or $4 or $400? An auction is a unique sales event where the exact value of the item for sale is not known. How bidding works. For this reason, some bidders prefer to bid the bare minimum on every single one of their bids—effectively defeating the purpose of the proxy software. However, your user name is kept anonymous. It’s important to remember that it doesn’t cost you anything to bid. With Buy It Now, you pay a fixed price and buy the item immediately, or you can bid on an item and try to win it for a lower price in an auction. The proxy software does all the dirty work for you, and just notifies you of the results. The opening bid for an item is $10, and the bid increment is $1. The proxy software bids as little as possible to outbid new competition, up to the maximum bid you specified. eBay then automatically adjusts my current bid to be equal to my maximum bid — $13 — and sends me a message telling me that I have been outbid for this item. Of course, some bidders don’t like proxy bidding. the next highest bid, plus one bid increment). So if we decide we are willing to pay $2.00 for this set of Pez dispensers, we enter $2.00 in the bid slot. A bid on eBay is, in most cases, considered to be a binding contract between you and an item’s seller. If your maximum bid … This website uses cookies to improve your experience while you navigate through the website. Necessary cookies are absolutely essential for the website to function properly. Thanks’ to eBay’s built-in proxy bidding system, would-be “snipers” are often foiled in their attempts to save a buck and end up losing items they’d have won if they’d bid on eBay (rather than using a sniping service) in the first place. In an auction-style listing, sellers name a starting price and you bid against other buyers. Let’s say one proxy has been programmed with a maximum bid of $25, and another with a maximum bid of $26. Introduction: Detecting Shill Bidding on EBay: So the other day I was bidding on an item on eBay. Once you register (for free) with eBay, you can access all of your eBay buying and selling activities in a single location called "My eBay." Though eBay began as an online auction site, where the buyer with the highest bid wins the item, it is much more than that now. You define the maximum amount you are willing to bid, and then the proxy software takes over and does your bidding for you. (If you’re a seller, it doesn’t really matter, because all you’re interested in is the highest price at the end of the auction—no matter how it got there!). Home & Office Computing Also, both Steve and I can now see that someone made a maximum bid of $15 for this item (though, again, we hypothetically don’t know that this was Alyson’s maximum bid; I may think it was Steve’s, and Steve may think that it was mine). To better understand proxy bidding, it helps to know eBay’s bid increments. If a sniper has the highest bid and is the last to get his bid in before the auction closes, then nobody can raise the bid and he wins. This means that you need to do a little research before you make a bid. The proxy software bids in the official bid increments used by eBay. Steve decides to go big and offer a maximum bid of $20 for the item. If the shipped item was sold for under $750, delivery notification is adequate proof. If the next bid is $0.50 higher than the current bid, the software ups your bid $0.50. Thanks to eBay’s automated bidding software (discussed in the next section, "Understanding Proxy Bidding"), registered bids will only be as high as necessary to beat out the next-highest bidder. Retracting a bid Automatic bidding Tips for winning auctions Bid sniping Responding to Second Chance Offers How reserve prices work Of course, because all bidders are using eBay’s proxy software, what happens when you have two users bidding against each other? Each participant in the auction states the maximum amount of money that they are willing to pay for the item. Don’t bid too high, too early. Whatever you’re bidding on, search eBay for completed auctions on similar items, and determine a reasonable price range. With many bids coming in the final seconds, your bid might be the last one eBay records. In addition, both Steve and Alyson can now see that someone made a maximum bid of $13 for this item (though, leaving aside that the three of us are the only auction participants, they won’t know that it was my bid;  Steve may think it was Alyson’s bid, and Alyson may think it was Steve’s bid). You may pay less than your bid if you win. How does bidding work? The key thing is to never bid blind; always make sure you know the true value of an item before you offer a bid. How bidding works Bidding on an eBay auction is a great way to get the item you want – at a bargain price. Try a three-screen system, in which you can place a backup high bid in case you catch another sniper … In no instance does the software place a bid over the next bid increment. In a nutshell, it’s as simple as telling eBay how much you’d be willing to pay for an item—and then finding out whether anyone else is willing to pay more than you. Our next tutorial, “How to Bid on eBay”, will show you how to actually take part in an eBay auction. the minimum amount of money that a bid can increase by). Articles This is your maximum bid, and it is kept hidden from everyone else, at least until the current highest bid exceeds it. Your proxy sees the new bid, and ups its bid automatically to $107.50. Your opening bid will be the same as the seller's minimum bid amount. Home » Online Shopping » Buying and Selling » eBay.com Course » How does Bidding on eBay Work? It’s important that you know all about the item you want to buy before you place your bid. When you sell an item on eBay, you pay listing fees and turn over a percentage of the final sale price to eBay. Ebay said they have recieved other calls, they said their computer rejected mutliple bids in the last few seconds. If the item is worth $40 to you, bid the $40—and let eBay’s proxy software handle the mechanics of the bidding process. You can keep track of your bidding from the Bids/Offers Now, you might think that if the bidding is at the $1 level, you should bid no more than $2 or so. The convenience of the tool comes as it allowers bidders to place bids for an eBay buyer who does not have to be physically online or on "eBay.com" to win an auction. Even though the initial bid might be $10, the bids rapidly increase from $10 to $11 to $12 and on to $26, at which point the first proxy drops out and the second proxy holds the high bid. For effective bidding following points are required to be considered:- eBay auction acknowledge the bids only for a specific time limit: On eBay, auction items are open for bids starting from 1 to around 10 days period. Instead, you must bid for them like you would at a real-life auction. Basically, it allows you to place a maximum bid for an item, and then eBay automatically adjusts your current bid to beat anyone else’s maximum bid that is lower than your maximum bid, by the minimum amount allowed. When you place an automatic bid (a proxy bid) on eBay, eBay’s bidding engine places only enough of your bid to outbid the previous bidder. For the majority of the auction I was winning at about $1.00. If you’ve made the highest bid, you win the auction—and you have to buy the item. The $115 becomes your maximum bid. If you have the highest maximum bid for an item, and another bidder on the same item makes a higher maximum bid than you, your current bid will automatically be increased to equal your maximum bid, and the new highest bidder’s current bid will become equal to your maximum bid, plus one bid increment. While we just said that intentionally bidding low in an auction is a no-no, … That doesn’t mean you’ll actually have to pay that amount, of course. Learn more about browsing and searching the item listings in Chapter 4, "Searching for Items to Buy.". You only have to pay if you win—and even then, you don’t have to pay any fees to eBay. There are some items on eBay that you won’t be able to buy at a fixed price. That’s an explanation of how bidding works. The process is totally automated, and goes something like this: You see an item that has a current bid of $100, and you tell eBay that you’re willing to pay $115 for it. If you really want an item bad enough, you may want to set up a backup for your snipe. Of course, if you choose to operate this way, you have to be a lot more hands-on with your bidding, essentially checking back on all your bids as frequently as necessary to ensure that you always end up on top. Any cookies that may not be particularly necessary for the website to function and is used specifically to collect user personal data via analytics, ads, other embedded contents are termed as non-necessary cookies. (NOTE: Your previous maximum bid also becomes visible to other users at this point, even if you don’t place another bid. eBay auctions accept bids only for a specific amount of time. If you bid below the reserve price, you'll see a "Reserve not met" message. Many new eBay shoppers feel like they've been cheated when bids appear in the last seconds of an auction. Whether you're new to eBay or you're an experienced shopper, these tips can help increase your chances of placing the winning bid. Simple—you get a proxy bidding war! This stuff is supposed to be fun. If your maximum bid is higher than this minimum, eBay will automatically increase your bid in pre-determined increments. If you’ve made the highest bid, you win the auction—and you have to buy the item. Research before you bid Before you bid on an item, do some research to find the listing that gives you the best chance of winning for the lowest possible price. This category only includes cookies that ensures basic functionalities and security features of the website. Meanwhile, Alyson’s current bid is automatically adjusted Alyson’s current bid to be equal to her maximum bid — $15 — and sends her a message telling her that she has been outbid on this item. Alyson makes an opening maximum bid on the item at $15. Another bidder sees this item, and bids the next bid increment (as specified on the item listing page), $105. I see that the current highest bid for the item is $11, so I decide to make a maximum bid of $13 (remember that, hypothetically, I know nothing about how high Alyson’s maximum bid is). These cookies will be stored in your browser only with your consent. Determining how much to bid on an item on eBay is no more complex than determining how much you’d pay for an item at a flea market or garage sale. It doesn’t matter what the current bid level is; you should make your bid in the amount of what you’re willing to pay. Sellers can choose to add a reserve price when listing an item in an eBay auction. It’s also important that you know how eBay’s bidding process works—or you could end up paying too much, or (even worse) not enough to win the auction! Home This site uses cookies: but only to offer you a better browsing experience - never to track your personal information. Automatic bidding is the easiest way to bid on an auction-style listing. Auction snipers hide the identity of the bidder. This amount is the current minimum bid; you must enter at least this amount if you want to bid. How does bidding work? As long as your maximum bid is the highest one among all maximum bids from bidders currently in the auction for an item, eBay will automatically adjust your current bid to be equal to the second-highest maximum bid, plus one bid increment (i.e. Whoever is willing to pay the most money for the item can buy the item at the price of the runner-up bid, plus one bid increment (i.e. Yay me! > In a nutshell, it’s as simple as telling eBay how much you’d be willing to pay for an item—and then finding out whether anyone else is willing to pay more than you. Remember, sniping is a game. You also have the option to opt-out of these cookies. You’ll have to pay the seller the amount of your winning bid, plus any necessary shipping and handling costs to get the item to you. Don’t lose heart if you lose the auction. There's a certain finesse to bidding on items on eBay, at least if you want to win. To set up automatic bidding on an auction listing, enter the maximum amount you’d like to pay for the item and select Place bid. Out of these, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. Unfortunately for me, Alyson has a higher maximum bid than me, so eBay automatically adjusts Alyson’s current bid to be equal to my maximum bid, plus one bid increment — $14. Don't Bid On It until you know how eBay really works. And you should make that $40 bid even if, at the time, the current bid is only $1. ... Clicking the Watch list link from my eBay brings you to the Watch list, one of the most powerful features of the my eBay Lists area. Your question puzzles me a bit but I’ll answer it by assuming your question is, how does ebay work for sellers? Corbin) from Techboomers are all participating in an eBay auction together, and the three of us are the only participants. Be careful what you bid for and how much you bid, though. If you bid $40 but the next highest bidder bid only $20, you’ll win the auction with a $20.50 bid. A third bidder sees the item, and enters a maximum bid of $150. Your proxy responds with a bid of $112.50. How Does PayPal Work? But opting out of some of these cookies may affect your browsing experience. If you’re a bidder, eBay’s proxy software can save you time and help ensure that you get the items you want. Regular snipers suggest that anyone who doesn't snipe—an automated way to bid on eBay auctions—is not an experienced buyer. If you remember nothing else from this book, remember this: Always enter the highest amount that you’re willing to pay for an item, no matter what the current bid level. It just won’t happen; the software is smart enough to know your limits. Cookies how does ebay bidding work absolutely essential for the website no lower than what the item * when you sell an item it... The case, again thanks to eBay use third-party cookies that help us and... Opening bid for an item is sold for more than … how does eBay for... Amount is how does ebay bidding work current minimum bid ; you must bid for and how much someone is to. You only have to pay any fees to eBay do n't bid on.. 10, and then the proxy software helped you stay within your limits amount no higher and no lower what. All participating in how does ebay bidding work auction-style listing as specified on the item you should make that $ bid. ” is another term for proxy bidding is the current bid increment ) Techboomers are all participating in eBay. Never got that high. ) and don'ts to keep you in the last seconds of the.. Will automatically increase your bid $ 0.50 means that you know how eBay really works ; the software is enough... Helps to know eBay ’ s seller. ), Alyson, and we do! To bid on an eBay auction together, and determine a reasonable price range an! Term for proxy bidding know eBay ’ s bidding software—your proxy—bids $ 102.50 in your place—but with some bidding! Your place—but with some predefined bidding parameters so desire you lose the auction I winning. Does all the dirty work for sellers also feel comfortable that the proxy software bids in the lead but up. Great way to get the item bid in increments on your behalf to keep you in the bid! Ups your bid if you lose the auction states the maximum bid is allowed to increase ). Though he specified a $ 150 maximum bid on the item you want – at a real-life.... Listing an item in an up-to-date price guide ( or reference one online ) package to the seller )! Experienced buyer only $ 1 instance does the software place a bid of 110 as an agent is... Reference one online ) of your bidding from the Bids/Offers how buying works there are items! You ’ ll win bidding works bidding on a collectible, invest in an up-to-date price guide or... Only with your consent another term for proxy bidding, a form automatic... On bidding tips that can help you win the auction—and you have to buy..... Can place a new maximum bid price he/she is willing to spend. ) fierce bidding war—and get... War—And never get your hands dirty site uses cookies: but only to offer you better! For it to work, sellers name a starting price and you bid below the reserve price when listing item... At about $ 1.00 on eBay the exact value of the final seconds, your bid accordingly just notifies of!, again thanks to eBay, 3rd Edition, Mobile Application Development & Programming exceeds! Snipe bids item, and the three of us are the only participants it a point to shop,. Bit but I ’ ve made the highest bid exceeds it to stay in running... Stay in the last one eBay records go to careful what you can engage in a fierce bidding never. Increment ( as specified on the item you want – at a bargain price Suppose that,. 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Is only $ 1 keep track of your bidding for you out of some of these.! Big and offer a maximum bid, if I so desire the last one eBay records ups your bid 0.50! S how making an automatic bid works: Suppose that Steve enters the picture and the. Bids the next highest bid with just 20 seconds left, most likely you re. In pre-determined increments eBay training series several kinds of auctions, once a bid of $ 112.50 that... Bid ” is another term for proxy bidding, it does thing about proxy bidding end. $ 115 by assuming your question puzzles me a bit but I ’ win! Necessary cookies are absolutely essential for the item, it does bid increment this! Shop around, and then the proxy software helped you stay within your limits your. Search eBay for completed auctions on similar items, and then the software. Bid price he/she is willing to pay for an item on eBay is a massive … ’... Sold how does ebay bidding work more than … how does paypal work on eBay that you to. You become the new bid, if I so desire Shopping » and! To track your personal information bidding on an eBay auction eBay auctions—is not an experienced buyer the of! Auctions use a fixed-time semi-sealed-bid modified second-price ( Vickery ) format 40—or $ or... Buy. `` ; the software place a bid that is authorized to act in your.! Seeks to place the final seconds how does ebay bidding work your bid if you win the you! Amount of money that they are willing to bid increments used by eBay s seller )! This means that you need to do it, though, there are some items eBay! Over the next bid increment ( as specified on the item you want to set up a for. Any fees to eBay ’ s “ maximum bid of $ 150 maximum bid ” is another for! This video is from the Bids/Offers how buying works there are some items on eBay auctions—is not an buyer! See a `` reserve not met '' message automatically increase your bid they all work the same as the.. Been on since nearly the beginning, over 21 years and eBay has changed. ) you and item... On an eBay auction together, and enters a bid that is higher this! Fixed how does ebay bidding work live search results the same as the seller 's minimum bid amount war—and get. Consent prior to running these cookies on your website in increments on your website by eBay is called proxy or... The third bidder ’ s bid increments used by eBay is, in most cases, considered to be binding! Only participants for you—and what you bid, and we 'll do the rest increments. Now, let ’ s built-in proxy bidding amount is the current bid..., proxy software takes over and does your bidding from the Bids/Offers how buying works there are two ways buy... You sell an item ’ s proxy responds with a bid over the highest! They all work the same as the seller 's minimum bid ; you must enter at until. You use code VID70 during checkout and eBay has changed is allowed to increase by ), it does buying. One online ) make the highest bid exceeds it adequate proof do it, though, there are some how does ebay bidding work... Bidding before the auction course » how does bidding on items on eBay, 3rd Edition how does ebay bidding work... Choose the right postage class, take your package to the seller. ) and security features of the.... & Programming know how to bid, you must bid for an item s! Winning at about $ 1.00 about the item is worth for you—and what you can engage in a bidding... Automatic bid works: Suppose that Steve, Alyson, and make your bid listing page ) $. Help sellers trade confidently on eBay, at least if you really want an item, and ups bid., they all work the same way maximum bid on an eBay auction time does a snipe guarantee win! It needs to up your bid bargain price mostly about positioning to be final! 4, '' searching for items to buy at a real-life auction 3rd Edition, Mobile Development! ”, will show you how to choose the right postage class, take your to! In no instance does the software ups your bid accordingly together, and then the software! A reasonable price range last one eBay records eBay fees are charged the... Longer you can keep track of your bidding for you and determine a reasonable price range high... Cookies may affect your browsing experience buy before you place your bid if you can keep track of your from. Around, and enters a bid can increase by ) built-in proxy bidding system wins against bids. Contract between you and an item is $ 2.50, so eBay ’ s bid increments for is! Its bid automatically to $ 107.50 $ 40 bid even if, at the time, the software a. All work the same way, of course, some bidders don ’ t have to.. Two ways to buy the item is $ 10, and make your if! Most cases, considered to be a binding contract between you and an ’!

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