How eBay works
Bidding
You bid for items on eBay using a system called Proxy Bidding. This works by making incremental bids up to the maximum amount chosen by the buyer.
How it Works
A Radio is being auctioned; the starting price is £1, and the bids go up in 20p amounts.
Buyer A sets his maximum bid to £3, he is currently the highest bidder; and the current bid is set to the start price of £1.
Buyer B decides to bid £2 for the radio. As he has not bid more than Buyer A’s maximum price (£3), bidder A is still winning the auction; but the current bid price goes up to £2, the maximum bid of Buyer B.
Buyer B then decides to bid £4 for the radio. He is now the highest bidder, so the current bid goes to the next amount over Buyer A’s maximum bid. As this auction goes up in 20p amounts, the current bid is set to £3.20.
So, if you set a maximum bid of £10 on an item with a £1 start price, only when someone else bids over £10 will they become the highest bidder; meaning that you could pay anywhere between £1 and £10 depending on other peoples bids.
Don’t forget that the bid price does not include postage costs unless clearly stated; the costs should be given by the seller in the item information, and will depend on the weight of the item.
Buy It Now
If you believe there is a specific price an item should sell for, you can set a ‘buy it now’ price. This al lows buyers to instantly win the auction at the set price without needing to bid; but the ‘buy it now’ option dis appe ars once a normal bid is placed.
For example: If you expect a television to sell for £60, you can set that as a ‘buy it now’ price. If someone places a normal bid, it could go for any price; but if someone clicks the ‘buy it now’ link first you will always get the fixed price.
You can now also set ‘buy it now’ only items; these are not auctions as they do not allow bids, the buyer can only win the item by buying at the fixed price. But beware of setting the price too high, as you will have to pay another listing fee to re-sell it if no one buys it.
Reserve Price
A reserve price is a minimum price, below which an item will not sell. The reserve price is hidden from buyers; all they will see is ‘Reserve Price Not Yet Met’ if the current bid is too low.
If the bid goes over the reserve price it will sell as normal; if it stays below the reserve price the item is not sold, and it is up to you whether you wish to re-list it. The minimum price you can set a reserve at is £50, though you must pay a small charge for placing the reserve.
For example: You are selling a stereo system, and do not want to sell it for less than £70, so you place a reserve of £70. Only when the bid price goes above that figure will the item sell; if it stays below you can decide whether to try selling the item again.
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