The Three Most Common Bidding Strategies On eBay

The advent of the Internet has completely revolutionized how traditional commerce is carried out.  Whereas before, sales pitches are initiated by scampering for leads and advertising at costly classifieds, today you could promote your goods for free and have people fight for the right to purchase the same.  Indeed, we are referring to online auction sites, or eBay to be more precise, as it is by far the most popular and most widely used venue for such activities.

Ebay started out as a labor of love, so to speak.  It was supposed to be a channel for the founder to seek out rare collectibles he could give to his wife.  As they were located in San Francisco, the bay area, the name eBay was formulated.  Today, eBay is the largest online marketplace in cyberspace, where daily transactions amount to millions of dollars exchanging hands.

Ebay has also become a community where people get to meet others of similar interests and where they could interact and exchange their opinions and views on certain matters.  Selling and buying, regardless of the avenue, is still a business, and a business is fundamentally a relationship between two or more people, after all.

As such, there are some interesting characters that have emerged from the ranks of its members.  What makes them interesting, you might ask?  Their bidding styles, of course!  You see, if you decide to sell online, you will have to deal with these rather distinct characters.  And if you decide to duke it out with other people for a crack at an auction sale, it might serve you well to use these strategies to achieve your goals. 

Let’s take a look at them.

• SNIPING.  This is perhaps the most notorious bidding strategy of them all.  Well, at least for the losing bidder.  Sniping involves bidding on an auction at the very last second.  Instead of monitoring the price, snipers pay more attention to the time remaining on the bid.  Indeed, it’s all about timing.  Snipers snatch the rights to the auction from the jaws of a bidder who probably thought that he has the bid wrapped up by virtue of blocking out most of the competition.  Sniping isn’t exactly a black hat maneuver.  It’s perfectly legal but infuriating for the losing bidder.

• LOWBALLING.  Lowballing is the most common bidding strategy there is, online or offline.  It involves bidding at small incremental rates, just to keep yourself in front of the competition.  This is a very practical tactic as it will keep the cost down.  It is by no means safe, however, as you could easily be outbid at the last second.

• PROXIES.  Perhaps the most underhanded tactic there is, using proxies is a strategy that involves at least two people, or at least two accounts.  One account would place a bid on the minimum allowable amount, while the other account would place a ridiculously high bid.  The high bid, of course, would deter other from bidding.  At the very last second, the account that placed the high bid would pull out, leaving behind the account that placed the very low bid as the sole bidder and winner of the auction.

These may seem as unfair methods, but all of them are perfectly legal.  Though admittedly, some are less ethical than others.  Nonetheless, the purpose of an auction is always based on which side you’re in.  If you’re a seller, it’s to make a profitable sale.  If you’re a buyer, it’s to secure a good deal. 

Knowing the common bidding strategies of people in eBay would give you the edge, regardless of which side of the fence you’re in.  If you’re a seller, you could set the settings to avoid the unfavorable strategies from being employed.  If you’re a buyer, you could choose an applicable strategy to achieve your goals.

Online auctions can be fun, for as long as you won’t be at the losing end of the bargain.