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eBay Auction Bidding Strategies--Overcoming the most Frustrating Situation on eBay


The Problem...

It's happened to the best of us.

You've been watching the auction all week, and finally you're about to claim your prize--a rare bronze statue from the Qing Dynasty. Or something just as tantalizing.

You log on a few minutes before the auction closes, and confirm that you're still the top bidder -- no one has challenged you in several days. You're already picturing "your" statue prominently displayed on the living room mantelpiece, your friends green with envy as you tell them about the great deal you got on eBay. You refresh the page a few times, to make sure you're still number 1. You even up your bid a little just to make sure no body tries to outbid you at the last minute.

50 seconds to go...30...10...the auction has ended and the statue is yours!! You refresh the page for the last time so you can see your eBay ID announced as the winning bidder. And that's when your heart drops to your toes. It's not your eBay ID at all, but some joker who calls themselves "SpeedyFingers123".

How could this have happened?

You were the winning bidder with only 10 seconds to go!! Speedy or not, it just doesn't seem humanly possible.

Well, you're right. No one is that fast. SpeedyFingers123 (I made that one up, so if it's your actual eBay ID, please don't sue me!) won the auction in the final 4 seconds. It isn't humanly possible because "speedy" didn't actually place the bid. The bid was place on his or her behalf, from a remote server, using something called Bidding Software.

You've Been Sniped!

The act of placing a bid during the final seconds of an online auction is called "Sniping" and it's perfectly legal on eBay. Bidding wars and sniping are an eBay sellers dream and a buyer's nightmare. Why, you're asking yourself, don't these people just use eBay's trusty proxy bidding process? Why not just discreetly enter the maximum they're willing to pay at the beginning of the auction, then let the cards fall where they may? Well, for a couple of reasons. First, it's not human nature. If all you have to do is outbid the next guy by fifty cents or even five dollars to win, wouldn't you?

Second, it doesn't make economic or strategic sense to place a bid anytime before the last five minutes of an auction.

Think about it. eBay encourages bidders to use the proxy system and place bids early. What this means is that an inexperienced bidder who wants an item will want to be the highest bidder right away, and will keep upping their bid to hold that winning position. They'll only stop when the bidding exceeds their budget. Then the next guy comes along and continues the process. If this starts at the beginning of a seven or ten day auction, and ends with a bidding war in the last 10 minutes, the final price for the item can spiral out of control. Many items sell for far more than fair market value because people get caught up in "bidding fever" -- all they want is to WIN, they're not even thinking about whether the price is realistic.

What to Do?

A better strategy would be for everyone to "watch" the auction until the very end. Again, there's two good reasons. One, the price doesn't spiral up as just illustrated. Two, the auction has zero bids, so it attracts fewer bidders-- less competition. It's a fact that once an auction has at least 1 bid, it becomes a magnet for additional bidders. Shoppers scanning an auction page tend to jump to the ones with bids, figuring there must be something that attracted other bidders. The more bids, the more interesting the item looks.

Wouldn't it be great if a seller started a two carat diamond ring at $0.99 and no one bid until the last five minutes, and they all bid in fifty cent increments? Someone might win the ring for just a few bucks!! Of course, that never happens, but it would be the ideal situation for a buyer-- and it would put eBay out of business in a hurry. eBay encourages early bidding and smiles upon the snipers of the world. eBay makes their profits on listing fees and "final value" fees. The more the item sells for the higher the "final value". This makes eBay very happy. That's why you'll never find any tutorials anywhere on eBay telling you to wait until the end of an auction to bid.

The Solution...

OK, so now that we understand the benefits of sniping, lets get back to our friend "SpeedyFingers123". Speedy probably started out in life just like I did. She learned everything she knew about eBay from eBay and never realized there was such a thing as bidding software. Never knew a computer could do your sniping automatically, bid on your behalf in the last 2 to 8 seconds of an auction, and do it while you're asleep. With sniping software, you tell the software program which auctions you're interested in and how much you're willing to pay. eBay never knows you've seen the auction until your friendly sniping service swoops in and places your bid with only seconds to spare. Neither does your competition. They never see you coming. The only way you can lose is if someone else uses the same program sets their maximum bid higher than yours.

(Yes, my friend, you can still lose. There's no guarantee of winning an auction no matter what system you use, if someone else is willing to pay more. If you set your maximum bid at a million dollars for a hunk of Elvis' belly button lint and some nut is willing to pay a million ten, you're still going to lose!)

"Bidding Fever" Cured

Let's face it, there IS a positive side to losing an auction. It's the satisfaction of knowing that you didn't lose your head and spend more than you could afford!! Trust me, I've been there, done that, and come to regret it. With sniping programs, you can "set it and forget it" and walk away knowing that if you don't win, you couldn't have afforded it anyway.

What's that I hear you saying? "But I could have had it if I'd just upped my bid by another fifty cents!" Hey, did you listen to anything I just said? Do you want to drive yourself nuts? It's only stuff, after all. You can't take it with you, and there will always be more. The beauty of eBay is that there will probably be another just like it, or at least something just as fabulous.

You're in Control

There's another big advantage to using bidding software. Two things, actually. First, sniping programs allow you to do something called "contingency bidding". Suppose you're interested in several very similar items and you want to win at least one of them but not all. Provided they're not all ending at the same time, you can create a contingency plan telling the bidding software to cancel your bids on the other items as soon as you win one of them.

Second, you can change your mind about an item you're bidding on at any time (except in approximately the last 15 minutes). On eBay, it's a huge "no-no" to retract a bid. You can only do this under the most dire of circumstances. Do it too many times you'll be politely asked to leave. Permanently. But, because eBay doesn't register your bid until the Sniping program enters it for you, (at the very end of the auction) you can cancel your "snipe" with no penalty. You're canceling what you've programmed into the sniping software, not an actual bid on eBay. Isn't that nice? No more "watching" an auction you're unsure about, and then forgetting to bid on it. No more babysitting your computer so you can be there for the final moments of the auction. No more finding out you've read the description wrong and you're bidding on an item you don't want. Or finding something you like better after you've already committed yourself to another item, and having to pass on it. (Or worse, spending way too much on both!) And, finally, you have the satisfaction of knowing that winning doesn't depend on the speed of your fingers or your internet connection.

Believe me, the first time you snatch an item away from SpeedyFingers123-- or anyone else for that matter-- you'll be hooked.

© 2004 NetBrainer LLC. An eBay Power Seller and rabid eBay shopper, Carolyn Schweitzer is the owner and editor of "NetBrainer", a site dedicated to improving the performance of buyers and sellers on eBay. (You can learn more about sniping programs at NetBrainer.com ). Carolyn also provides weekly recorded tips on eBay for "Third Mind USA Small-Biz radio".


TODAYS NEWS BY OFFICEJAX FREE ADVERTISING AND AD EXCHANGE SOLUTIONSMORE RESOURCES updated Sun. June / 13 / 2021

Blue Origin auctions seat on first spaceflight with Jeff Bezos for $28 million - CNBC
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  3. Jeff Bezos’ Blue Origin auctions off seat on first human spaceflight for $28M  TechCrunch
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  5. Blue Origin auctions New Shepard seat for $28 million  SpaceNews
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St. Louis County land auction nets $900,000  Duluth News Tribune

Mona Lisa up for auction? Not quite - Reuters
Mona Lisa up for auction? Not quite  Reuters

Kraken Unveils Parachain Auction Platform - Business Wire
Kraken Unveils Parachain Auction Platform  Business Wire

Famed 'Doge' meme NFT sells for record-breaking $4 million at auction - Business Insider
Famed 'Doge' meme NFT sells for record-breaking $4 million at auction  Business Insider

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The Top 5 Biggest Lots Sold Through Artnet Auctions This Year, From a Frank Stella Masterwork to an Andy Warhol Icon  artnet News

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Arizona land auction postponed again after no one bids  ABC15 Arizona

A 110-year-old bottle of Champagne is about to go on the block in an auction that could fetch millions - CNBC
A 110-year-old bottle of Champagne is about to go on the block in an auction that could fetch millions  CNBC

Michael Jordan's Signed 'Player Sample' AJ1's Up For Auction, Could Fetch $250k - TMZ
Michael Jordan's Signed 'Player Sample' AJ1's Up For Auction, Could Fetch $250k  TMZ

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'Covid Alien' CryptoPunk NFT sells for over $11.7 million to billionaire buyer in Sotheby's auction  CNBC

Heritage Auctions Claims the Zobrist Ring is Being Sold By a Merchandise Collector, Zobrist's Agent Says Not True - bleachernation.com
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10 Standout Auction Lots on Artsy This Week  Artsy

HiBid Records $44 Million in Auction Sales Last Week, with Returned and Seized Items Now Up for Bidding - PRNewswire
HiBid Records $44 Million in Auction Sales Last Week, with Returned and Seized Items Now Up for Bidding  PRNewswire

Behind Blue Origin bids: RR Auction vets viers for New Shepard seat - collectSPACE.com
Behind Blue Origin bids: RR Auction vets viers for New Shepard seat  collectSPACE.com

The Most Expensive Picassos to Sell at Auction - ARTnews
The Most Expensive Picassos to Sell at Auction  ARTnews

World's Most Valuable Postage Stamp Falls Short Of Anticipated Auction Record - NPR
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Courthouse commotion — protesters try to disrupt World Class foreclosure auctions  KXAN.com

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FCC sets October start date for 3.45 GHz auction  FierceWireless

Government auctions vehicles with open recalls in Phoenix - AZFamily
Government auctions vehicles with open recalls in Phoenix  AZFamily

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Real Estate Auction Firms - Wichita Business Journal  Wichita Business Journal

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PHOTOS: ‘Tiny home’ built by Casper Pathway students auctions for $103,000  Oil City News

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Rice/St. Cloud Area Auction • Saturday, June 5 | Auctions  ECM Publishers

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Berks County to Hold First-Ever Online Auction for Delinquent Real Estate Taxes via Bid4Assets.com  PRNewswire

Highest auction price worldwide for rare Australian coins - Sydney Morning Herald
Highest auction price worldwide for rare Australian coins  Sydney Morning Herald

Two Kentucky Real Estate Professionals Indicted for Rigging Farmland Auction - Department of Justice
Two Kentucky Real Estate Professionals Indicted for Rigging Farmland Auction  Department of Justice

The Hulman Estate Auction starts Friday at the Fairgrounds in Vigo County - WTHITV.com
The Hulman Estate Auction starts Friday at the Fairgrounds in Vigo County  WTHITV.com

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Nuclear capacity increases by 4.5 GW in long-delayed 'MOPRed' PJM auction, coal loses 8 GW  Utility Dive

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Rare Toulouse-Lautrec Hospital Painting to Sell at Paris Auction  ARTnews

Winning auction bid to fly in space with Jeff Bezos: $28M - pressherald.com
Winning auction bid to fly in space with Jeff Bezos: $28M  pressherald.com

Jim Lee's X-Men, WildCATS and Punisher Original Artwork at Auction - Bleeding Cool News
Jim Lee's X-Men, WildCATS and Punisher Original Artwork at Auction  Bleeding Cool News

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A Man Who Died Of COVID Left His Family A Cache Of Baseball Cards Worth Millions  NPR

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How Shop an Auction : Finding a Deal on Furniture at an Auction  HouseBeautiful.com

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Princeton Area Auction • Friday, May 28 | Auctions  ECM Publishers

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Going once, going twice: Midland County property included in state surplus auction  Midland Daily News

This stolen Corvette was recovered in Rochester. NY sold it at auction. - Democrat & Chronicle
This stolen Corvette was recovered in Rochester. NY sold it at auction.  Democrat & Chronicle

County to auction off hundreds of properties with unpaid taxes - Tulsa World
County to auction off hundreds of properties with unpaid taxes  Tulsa World

Racing antiques up for auction at Mary Hulman Estate - Fox 59
Racing antiques up for auction at Mary Hulman Estate  Fox 59

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Social Auction App SuperBid Enters The Ring With Logan Paul And Floyd Mayweather In Their Upcoming Fight  PRNewswire

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Sudan continues foreign currency auctions as pound slips in black market  Nasdaq

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Sale of Museum Paintings Helps Conclude Strong Auction Season  The New York Times

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Julie Mehretu Painting Brings Artist Auction Record of $6.5 Million on Artsy  ArtfixDaily

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MBS Live Recap: Strong 10yr Auction Reinforces Friendly Trend  Mortgage News Daily

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World's largest collector-car auction company to debut event in Tulsa this weekend with 600 vehicles  Tulsa World

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Elmira Police Department vehicle auction now open  WETM - MyTwinTiers.com

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Acker Announces US $10 Million Trinity Collection Auction  wineindustryadvisor.com

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Long Term Care Company Offers Former Riverside Hospital at Auction in Wichita, KS - PRNewswire
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California set to hold auction of over 1,200 iconic TV and film props - KX NEWS
California set to hold auction of over 1,200 iconic TV and film props  KX NEWS

Airplane used by Romanian dictator Ceausescu up for auction - CNN
Airplane used by Romanian dictator Ceausescu up for auction  CNN

1955 GMC Suburban Restomod Heads To Auction In Florida - GM Authority
1955 GMC Suburban Restomod Heads To Auction In Florida  GM Authority

Blue Origin’s auction for a ride on its 1st crewed launch hits $2.6 million - Space.com
Blue Origin’s auction for a ride on its 1st crewed launch hits $2.6 million  Space.com

Sewickley home 'Hillside Hollow' with 24 acres of land heading to auction - Pittsburgh Business Times - Pittsburgh Business Times
Sewickley home 'Hillside Hollow' with 24 acres of land heading to auction - Pittsburgh Business Times  Pittsburgh Business Times

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PJM capacity auction to run with complaint over Dominion's FRR election still pending  S&P Global

Miami Beach hotel heads to foreclosure auction - The Real Deal
Miami Beach hotel heads to foreclosure auction  The Real Deal

Florida holding auction Saturday for unclaimed property - Wink News
Florida holding auction Saturday for unclaimed property  Wink News

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Mall short-sellers see a big payout from Nevada mall auction - The Real Deal
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Kurt Cobain's Hair Sells For Over $14,000 at Auction - TMZ
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The Fast and the Furious Supra is on auction  KHON2

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New York Art Auction Week Top Lots: Picasso, Basquiat, Monet  Bloomberg

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Former site of Detroit's longest-running gay health spa, TNT Health Club, in foreclosure  Detroit Free Press

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Weekend Auction Benefitting The Fastbreak Foundation  Timberwolves.com

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NASA Apollo Mission lens made by Zeiss up for auction in Austria  Business Insider

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Michigan DNR selling public land at online auction -- how to buy  FOX 2 Detroit

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