|Dutch and Fixed Price Auctions|
|<< Starting Out on eBay | Dutch and Fixed Price Auctions ||
A Dutch auction is held when a seller has multiples of the same product and wants to sell them to the highest bidders, but doesn't want to use the Fixed Price format.
Dutch Auction: The seller has, for example, 125 Dopey/Grumpy Cookie jars up for auction. All winning bidders will pay the exact same price, no matter what their bid was. The price of the jar will be the lowest bid that is successful or a winning bid. The top 125 bids would be considered successful bids.
Each jar is considered a separate bid. One bidder bids on five jars = five bids.
Two different things can happen:
The easiest way to keep an eye is watch the auction current price, that's the bid for the 125th jar and the price all will pay if the auction ends right then. No one pays more than anyone else, no matter what they bid.
Fixed Price: The seller has 125 Disney cookie jars, all the same, and is willing to sell them for $40. each. They would be listed as a quantity of 125 and a price of $40. Buyers can buy any number that are still available, at the $40. price and at any time during the auction.More: Starting Out on eBay