eBay's New Automatic Bidding System

As a seller I have had a number of bidders tell me that they were upset because they missed an item that they really wanted.   As a buyer, I was tired of loosing an item that I really wanted because I didn't go high enough.  eBay has come out with a nifty system,  called, "Proxy Bidding"

It is an automatic bidding system to make bids on eBay items more convenient and less time consuming for bidders. In fact it is easy as pie, you don't even have to set up anything in order to bid this way.  When you bid on an item in the "auction, you will be placing bids using this method. Ebay even has a Test drive for the auction you can try out if you go to your "My eBay" and look up Proxy Bidding.

You don't have to loose the item any longer. Here is how it works. You place a bid on the item, you enter the max amount you are willing to pay for the item.  If the item is $1.00 but you know it is worth $15 to you. You can put a bid of $15 on the item. The seller and other bidders do not know your maximum bid amount.  Then eBay places bids on your behalf starting with the next bid increment for the auction. The bid increment is the amount by which a bid will be raised each time the current bid is outdone.  It is predetermined based on the current highest bid.  See the eBay schedule below.

Current Price           Bid Increment

$0.01 - $.99                  $0.05

$1.00 - $4.99                $0.25

$5.00 - $24.99              $0.50

$25.00 - $99.99            $1.00

$100 - $249.00             $2.50

$250 - $499.99             $5.00

$500 - $999.99            $10.00

$1000 - 2499.99          $25.00                                                                                                                                             

                                                                                                                     It all depends on how much you "must have" the item.  Ebay will bid as much as necessary to make sure that you remain the higher bidder (like having a remote control  in a real auction).  Ebay keeps bidding for you until bidding reaches your maximum amount.  If the bid goes pass what you were willing to pay, then someone else wins the item.   In the past my bids were never high enough and I lost a lot of items that I really wanted.  So now I put my bids at the max that I would pay for the item plus a few dollars.

Example:

1) If the current bid for an item is $10.00 Clayton is the high bidder and has placed a maximum bid of $12.00 on the item.  His maximum bid is kept confidential from other eBay members and the seller.

2) Sharon views the item and places a maximum bid of $15.00 then Sharon becomes the high bidder, and no one knows how much she has placed as her proxy bid.

3) Wayne's bid is incremented to his maximum of $12.00.   Sharon's bid is now $12.50

4) Ebay then sends Clayton an email that he has been outbid.   If he doesn't raise his maximum bid, Sharon wins the item, unless another bidder comes in with a proxy bid.

This is a wonderful way to play the auction game and save money too.  In fact you could pay significantly less than your maximum bid that you originally placed.   It means you don't have to keep coming back to re-bid every time another bid is placed.  There are auction sniper internet companies that will sell you software for snipping or you can pay a snipping company to bid for you automatically, but they are cost you out of pocket.   This eBay feature is FREE to ebay members.

Additional comment:  On eBay, a bid increment is the minimum amount the current bid must increase in order to outbid the previous high-bid. Remember any new bid must be greater than the current high bid.   The additional amount you must bid depends on the current price of the item being auctioned.  In other words, bid increments are determined by the item's price.   For example, if you want a Chanel purse with a current bid price of $150, you must place a bid at least $2.50 to outbid the current bidder.   However it you really want the item your bid will need to be higher in order to secure that you will have a running chance at obtaining the item. See the chart above to help explain.

If you felt this guide was helpful in anyway, please place a YES below. It would be appreciated.