Proxy Bidding Explained
People often complain about being outbid by only fifty cents or a dollar, regretting that they did not bid a little more to win the auction. Yes, they might have won it with a little more, but not necessarily. The high bidder could have bid much more, but with the automatic/proxy bidding system his bid will only go up to the amount needed to win the item.
Example:
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Current High Bidder is Joe for $20. Unknown to you, Joe has already put in his (automatic) bid in for $41.
Your bid is $32.50 -- The bid jumps to $33.50 with Joe still as high bidder.
You are outbid and he wins the auction, but even if you bid another dollar or two, you wouldn't have won the auction.
Some folks seem to be a bit leery about putting in their maximum bid, usually it's because they aren't familiar with how the bidding system works and are afraid of how much the bid will jump. As example shows, Joe did not pay his maximum price, the system only goes up to what is needed to win the bid.
Reserve Auction Bids
A reserve auction bid is a little different. When a seller has a reserve bid, if your maximum bid is less than reserve, the bidding proceeds as above. But if your maximum bid is more than the reserve price, the bid will immediately jump to the seller's reserve price.
Two examples:
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Minimum bid is $10. with an unknown reserve on the auction.
Your bid is $25., reserve price is not met, but shows your bid as high at $10.
OR
Your bid is $35, reserve price of $26. was met, your bid is shown as the high bid at $26.
More Resources:
eBay Resources for Buying and Selling Online
The ABCs of Buying
What is Auction Sniping?
eBay Resources and Articles
