Different Ebay bidding strategies - The Pros and Cons.

Most people can figure out the bidding function on Ebay with ease. Proxy bidding is a very simple concept to understand:

• If you bid higher than the current bidder, the price only goes up to just above their bid.
• Once the auction ends, the highest bidder wins.
• If you bid a max higher than what the auction ends at, you only have to pay the current bid, not your max.

Most people take this general simplicity, along with the fact that the highest bid wins, and think they don't need a strategy. However, to be a successful Ebay buyer, you should practice and learn to bring a strategy to every auction you bid on. Each way to bid has different pros and cons and can be the difference from scoring an item for super cheap, or overpaying.

1. Making sure you are the highest bidder throughout the auction to the end.

To clarify, this is referring to people who will watch an item on Ebay and make sure they are always the highest bidder every time they look at the item. Generally there is not much plan before hand to this. After you are outbid, you decide whether you want to go higher or not. Eventually you win the auction assuming you continually outbid everyone else.

Pros:

This is a very simple method and is reactive than proactive. Some people don't like to plan, so this is easy. Each time you look at the auction, you place a new bid. Watch it until the end and make sure you win. Its not necessarily as nerve-racking as other options as well.

• Simple
• Less nerve-racking
• Ensures you win more often.

Cons: This line of bidding is not one I use. You don't win anything in a proxy auction for how long you lead. This isn't NASCAR. All that matters is who wins at the end. Generally, you overpay this way too because there are more bids. You are also more susceptible to impulse bids as you create more situations where you continually look at the auction to see if you are still winning.

• Leading doesn't matter.
• May overpay.
• More susceptible to impulse.
• You play your hand to everyone – no one is surprised.

I don't recommend using this method, but some may have success with it.

2. Bidding the highest amount you will pay and leaving the auction.

This one is very simple. You decide before hand you are only have $2500 to spend, and you can't go any higher on that beautiful 10179 Millennium Falcon. So you throw the bid in there and if you win, you win and if you lose, you don't have to mortgage anything. Again, you only have to pay what the highest bid was that lost to you, not your max.

Pros:

Typically this is better for lower priced items or when you don't have a ton of time. You can take the time to decide what the most is you would pay for something and then set it and leave it. If you win, great! It requires very little effort past the first bid. Also you are safer from people who bid at the last minute to steal an item (snipers) as you have already entered your highest bid.

• You can set a price before hand so you generally don't more than you want.
• Requires very little effort past first bid.
• Don't have to pay your max if its lower.
• Generally safer from snipers since you have already bid your max.

Cons:

Though you don't necessarily have a chance to make a bad decision and overpay, you can still pay more than what you did using a different strategy. Other strategies may not drive the price up as much. There are a lot of people that become curious if they detect a high max bid and will bid trying to find what the max you bid was.

• May pay more than using a different method.
• Can be nerve-racking in final minutes hoping you aren't sniped since you have been leading the auction the whole time.

3. Sniping

This really seems to be everyone's favorite and the most used method. It entails waiting until the final seconds of an auction, and then bidding the maximum you will pay, or just a high amount, to try and win the auction in the final seconds before the current winner, or anyone else, can put in a new bid. Doing this is exhilarating for some and a nightmare for others. The moments when the auction hits 10s are like no other in buying. You know if you have done this before.

Pros:

If you time it right, no one can retaliate and outbid you because they are out of time. People who would possibly reconsider and outbid you are out. This generally means you will get the lowest price for the item possible. And you only have to really pay attention to the auction at the very end.

• Other bidders can't retaliate
• Lower price for the item
• Only have to watch the end of the auction.

Cons:

This method can be easily mitigated by number 2. If the max is high, choosing what to bid can be a pain. Also, if you bid too low, you have no time to reconsider either. So generally you have to make sure you bid your max. Also, I find that in auctions for things that have a lot of bidders, there are most likely several others employing this method, meaning there will be tons of bids in the final seconds. Also if you mess up putting the bid in, or you forget about the auction, or you lose internet access even, kiss it goodbye!

• Requires you to be present for end of the auction.
• Others will be using this as well in more popular auctions meaning mass bidding at the end.
• You are out of time if your bid doesn't win.

4. Gradual Bidding

Think about being at a live auction and every time someone bids, a person in the back immediately outbids them. That person is sending a message. They are saying “this is mine, just give up”. If you do this as a bidder you can generally get things for less because it frustrates other potential buyers.

To do this, every time you see you are outbid, try to guess what the persons max was and just barely outbid them. Why not put in your max bid? You want them to outbid you so that when they do, you immediately take it back again. Think about how frustrating that is.

Pros:

Though this seems the same as just setting a high max bid, when people realize a high max is there, they bid higher to try and find it. This means less bids until it hits near what it will go for. The more you make them bid and show them you are winning, the more they get frustrated and give up.

This method is best used in conjunction with sniping. Do this early and snipe at the end if you are outbid within the last day by a determined bidder.

• Weeds out the bidding pool.
• Sends a message that you want the item.
• May score item for less if everyone gives up.

Cons:

The biggest drawback for this method is that you have to watch like a hawk. With mobile phones this is much easier, but obviously its still time consuming.

• Time consuming to do right.
• Susceptible to sniping if you don't eventually set a high max bid.
• Doesn't work well on lower priced items.

Some other general bidding recommendations:

• Make sure you don't set too many max bids on too many auctions at the same time. Just because you think the max bid wont win doesn't mean you don't have to pay it if it does. This can be dangerous.
• If an item you are watching has zero bids, I suggest leaving it that way. The more time something has no bids, the more time people think maybe it isn't worth it. You can take advantage of that and snipe it late for low.
• Don't always look for the lowest starting bid. People start items at $.99 because they pay less fees to do so. These items will go way above that. Don't ignore a 10179 just because it starts at $2000. If no one else pays attention, you might get it for cheaper.
• Make sure you always clean up your watch list and have it sorted by “Ending Soonest” so that you can easily stay aware of your items.

Comment on the article and give some of your auction strategies and let me know if you employ any of these!

Note: All of the information here are my own opinions and are pulled from my experiences. You may or may not have success with these methods.