Authors: Marsha Collier
Tags: #Electronic Commerce, #Computers, #General, #E-Commerce, #Internet auctions, #Auctions - Computer network resources, #Internet, #Business & Economics, #EBay (Firm)
EBay for Dummies (25 page)
Bidding to the Max: Proxy Bidding
When you make a maximum bid on the bidding form, you actually make several small bids — again and again — until the bidding reaches where you told it to stop. For example, if the current bid is up to $19.99 and you put in a maximum of $45.02, your bid automatically increases incrementally so that you’re ahead of the competition — at least until someone else’s maximum bid exceeds yours. Basically, you bid by
proxy,
which means that your bid rises incrementally in response to other bidders’ bids.
No one else knows for sure whether you’re bidding by proxy, and no one knows your maximum bid. And the best part is that you can be out having a life of your own while the proxy bid happens automatically. Buyers and sellers have no control over the increments (appropriately called
bid increments
) that eBay sets. The bid increment is the amount of money by which a bid is raised, and eBay’s system can work in mysterious ways.
The current maximum bid can jump up a nickel or a quarter or even an Andrew Jackson, but there is a method to the madness, even though you may not think so. eBay uses a
bid-increment formula
(see Table 6-1) that uses the current high bid to determine how much to increase the bid increment. As you can see, the proxy bidding amounts become larger the higher you bid. For example:
A 5-quart bottle of cold cream has a current high bid of $14.95. The bid increment is $0.50 — meaning that if you bid by proxy, your proxy will bid $15.45.
But a 5-ounce can of top-notch caviar has a high bid of $200. The bid increment is $2.50. If you choose to bid by proxy, your proxy will bid $202.50.
Table 6-1 eBay’s Proxy Bid Increments | |
Current Bid | Your Bid Increment |
$0.01–$0.99 | $0.05 |
$1.00–$4.99 | $0.25 |
$5.00–$24.99 | $0.50 |
$25.00–$99.99 | $1.00 |
$100.00–$249.99 | $2.50 |
$250.00–$499.99 | $5.00 |
$500.00–$999.99 | $10.00 |
$1000.00–$2499.99 | $25.00 |
$2500.00–$4999.99 | $50.00 |
$5000.00 and up | $100.00 |
Table 6-2 shows you what kind of magic happens when you put the proxy system and a bid-increment formula together in the same cyberroom.
Table 6-2 Proxy Bidding and Bid Increments | ||||
Current Bid | Bid Increment | Minimum Bid | eBay Auctioneer | Bidders |
$2.50 | $0.25 | $2.75 | “Do I hear $2.75?” | Joe Bidder tells his proxy that his maximum bid is $8.00. He’s the current high bidder at $2.75. |
$2.75 | $0.25 | $3.00 | “Do I hear $3?” | You tell your proxy your maximum bid is $25.00 and take a nice, relaxing bath while your proxy calls out your $3.00 bid, making you the current high bidder. |
$3.00 | $0.25 | $3.25 | “I hear $3.00 from proxy. Do I proxy hear $3.25?” | Joe Bidder’s proxy bids $3.25, and while Joe Bidder is out walking his dog, he becomes the high bidder. |
A heated bidding war ensues between Joe Bidder’s proxy and your proxy while the two of you go on with your lives. The bid increment inches from $0.25 to $0.50 as the current high bid increases. | ||||
$7.50 | $0.50 | $8.00 | “Do I hear $8.00?” | Joe Bidder’s proxy calls out $8.00, his final offer. |
$8.00 | $0.50 | $8.50 | “The bid is at $8.00. Do I hear $8.50?” | Your proxy calls out $8.50 on your behalf, and having outbid your opponent, you win the auction. |
Specialized Auction Categories
After you get the hang of bidding on eBay, you may venture to the specialized auction areas. You can purchase a car or car parts and accessories from eBay Motors, or your own piece of land or a new home in the Real Estate category. eBay is always adding new specialty areas, so be sure to check the announcements as well as the home page.
Should you reach the big-time bidding, be aware that if you bid over $15,000 in an auction, you
must
register a credit card with eBay. All items in the special categories are searchable in eBay’s search engine, so don’t worry about missing your dream Corvette when you use the Search page.
eBay Motors
Visiting the automotive area of eBay is an auto enthusiast’s dream. You can also find some great deals in used cars, and eBay offers creative ways to make buying vehicles of all shapes and sizes (as well as the largest array of parts you’ll find anywhere on the planet) easy. Visit eBay Motors by clicking the eBay Motors link on the home page or by going to
www.ebaymotors.com
.
Search engine:
If you want to search for cars without coming up with hundreds of die-cast vehicles, eBay Motors has its own search available from the eBay Motors home page.
Vehicle shipping:
If you don’t want to drive across the country to pick up your new vehicle, you can have it shipped through Dependable Auto Shippers. Check online for a free quote.
Inspections:
Many used-car sellers take advantage of inspection service vendors. These companies offer a comprehensive inspection covering the mechanical condition and cosmetic appearance and they supply a detailed inspection report. Car auctions from sellers who have their cars inspected have their auctions listed with an Inspection icon.
Lemon Check:
With the vehicle’s VIN (Vehicle Identification Number), you can run a lemon check on the car through
CARFAX.com
.
Escrow:
Escrow.com is one of the safest ways to purchase a vehicle online. Escrow.com verifies and secures the buyer’s payment and releases payment to the seller only after the buyer inspects and is completely satisfied with the vehicle.
eBay Stores
The eBay Stores are a quick, easy, and convenient way to find items for sale that you can buy now. A large number of eBay sellers have opened eBay Stores for a monthly fee as an inexpensive way to display a large amount of items for sale. They’re offered a much lower listing fee for their items, as low as 3 cents, and the items stay in their stores for as long as they want. The lower listing fees are quite a savings over the fees for listing an item for auction, and sellers often pass the savings onto you.
When you’re perusing the auctions on eBay, look for the little red door icon next to a seller’s user ID. If you click the door, you’re magically transported to the seller’s virtual eBay storefront. Figure 6-8 shows you the eBay Stores hub. You get there by clicking the eBay Stores link on the upper-left of the home page.
eBay Stores have a separate search engine than the eBay core search engine. If you don’t find the item you’re looking for on eBay auctions, look at the column on the left side of the page. Under the Related Stores heading is a list of eBay stores that may contain the item you’re looking for and a Search Stores link. Click the link, and eBay performs the same search for you in all eBay Stores.
Figure 6-8:
The eBay Stores hub — from here, you can browse categories, visit stores, or search all items in all eBay Stores.
The Agony (?) of Buyer’s Remorse
Maybe you’re used to going into a shopping mall and purchasing something that you’re not sure you like. What’s the worst that could happen? You end up back at the mall, receipt in hand, returning the item. Not so on eBay. Even if you realize you already have a purple feather boa in your closet that’s just like the one you won yesterday on eBay, deciding that you don’t want to go through with a transaction
is
a big deal. Not only can it earn you some nasty feedback, but it can also give you the reputation of a deadbeat.
Buyer’s remorse can pay off
Sometimes buyer’s remorse does pay off. I know one eBay buyer who got a serious case of remorse after winning an auction. She decided to do the right thing and pay for the item even though she didn’t want it. After receiving the item, she turned around and
sold
it on eBay for triple what she paid. If you really don’t want the item, think like a seller — see whether you can turn a horrible mistake into a profitable venture. For more information on the benefits of selling, take a look at Chapter 9.
It would be a shame to float around eBay with the equivalent of a scarlet
D
(for
deadbeat
) above your user ID. Okay, eBay uses a kinder term —
non-paying bidder
— but for many members, it boils down to the same thing. If you win an auction and have to back out of your obligation as the winner — even through no fault of your own — you need some info that can keep you in good (well, okay,
better
) standing. Look no further; you’ve found it.
Retracting your bid
Remember, many states consider your bid a binding contract, just like any other contract. You can’t retract your bid unless one of these three outstandingly unusual circumstances applies:
If your bid is clearly a typographical error (you submitted a bid for $4,567 when you really meant $45.67), you may retract your bid. If this occurs, you should reenter the correct bid amount immediately. You won’t get any sympathy if you try to retract an $18.25 bid by saying you meant to bid $15.25, so review your bid before you send it.
You have tried to contact the seller to answer questions on the item, and he or she doesn’t reply in a timely fashion.
If the seller substantially changes the description of an item after you place a bid (the description of the item changes from “can of tennis balls” to “a tennis ball,” for example), you may retract your bid.
If you simply must retract a bid, try to do so long before the auction ends — and have a good reason for your retraction. eBay users are understanding, up to a point. If you have a good explanation, you should come out of the situation all right. So admit you’ve made a mistake.