Tuesday, September 20, 2005
Tips: How Proxy Bidding System Works
eBay's built-in bidding software automatically places a bid for the bidder that best the current bid by a specified amount-but doesn't reveal the bidder's maximum bid.
For example, the current bid on an item might be $25. A bidder is willing to pay up to $40 for the item, and enters a maximum bid of $40.
eBay's Proxy Bidding System places a bid for the new bidder in the amount of $26--higher than the current bid, but less than the specified maximum bid. If there are no other bids, this bidder will win the auction with a $26 bid.
Other potential buyers, however, can place additional bids; unless their maximum bids are more than the current bidder's $40 maximum, they are informed via email that they have been outbid--and the first bidder's current bid is automatically raised to match the new bids ( up to the specified maximum bid price. )
