Standard eBay bidding uses a hidden proxy bidding system.
The “hidden” component of hidden proxy bidding means that the prices of all bids are hidden until the auction closes.
The “proxy” component of hidden proxy bidding means that you can safely bid the maximum amount you are willing to pay for a sale item, but you will only have to pay the minimum amount necessary to win the auction.
For example, if you see an antique pistol holster you wish to bid on, but you are only willing to spend $200 on, you can safely bid $200 for the holster. If the 2nd place bid is for $50, you would win the bid and only pay $50 plus a small increment. You would get your $200 holster for only $51!
eBay Bidding Increments
|Current Bid||Bidding Increment|
|$0 – $.99||$.05|
|$1 – $4.99||$.25|
|$5 – $24.99||$.50|
|$25 – $99.99||$1.00|
|$100 – $249.99||$2.50|
|$250 – $499.99||$5.00|
eBay Bidding in Dutch Auctions
eBay Dutch Auctions are used by sellers who have many identical items which they wish to sell.
eBay bidding in Dutch Auctions is neither hidden nor proxied.
In Dutch Auction eBay bidding, all bids are made public.
In a Dutch Auction, eBay does not proxy bid for buyers. Each buyer pays the amount bid by the winning bidder.
For example, if an eBay seller is listing 5 NRA safety videos and you bid $15, your $15 bid is then made public. The 5 highest bidders at the end of the auction will win a video — at the price of the lowest winning bid. If the lowest winning bid is $8, the top five bidders will win the videos at $8.
For more information on eBay bidding in Dutch Auctions, read eBay Help: Dutch Auctions.
Introduction to eBay Bidding
For novice users, eBay offers a multimedia guide to eBay bidding called How to Bid and Buy.