This approach is called " Bidding for a bargain and hoping for a win" and is next to completely useless against a snipe bid.Having looked at the completed sale price of some of the items I was watching, I was surprised to find that some had sold for less than what I would consider normal. They get uncomfortable putting an amount of $100 on an item that's only at $10, so they will try and win by "nibbling" - only putting in just enough to beat the other guy. People can get carried away with this and the price can climb up to silly amounts. Leaving a long time before the auction ends allows what is called a "bidding war" where several bids over a number of days pushes the price up a little at a time. This approach is called " Bidding for a win and hoping for a bargain". As said above, a snipe bid is a one shot effort right at the very end where you make a single bid that is at the highest end of what you are prepared to pay - and if it gets beaten, then you can live with the fact that the other guy paid too much. Some people complain about it - but it is quite legal and complaining only shows that they were too timid in their bidding. This is the way to minimise the amount you pay. You could put $1000 on an auction, but if the next highest bidder doesn't go over $100, then you will only have to pay $101. It is the second highest bidder that sets the price to beat (plus a bid increment). It is important to understand that the final sale price is NOT dependent on the winning bidder.
It is this mechanism that allows someone to put in a big bid amount with the hope that the second highest bidder is not prepared to go as high. The fun part of this is - you can never know what the other person's maximum bid is until you beat it (or get within the bid increment below it - which is not common). It's not until you put in a bid that is greater than the other person's maximum bid that you will be winning. Bid again with $60, $70 and $80 and you will get outbid every time. This happens immediately, which is why you get outbid straight away. The eBay system then repeats the process and your $50 bid gets beaten by the bid increment and the other person is still winning, but with an amount of $51. You see that you have been outbid and come back with a bid of $50. For $25, the bid increment is $1 - so you will be outbid by an amount of $25 + $1 = $26.
JBIDWATCHER ISSOES PLUS
The eBay system will use as much of that $100 as it needs to beat your bid - which is $25, plus an amount they call the "bid increment". Now let's say someone else wants to bid and they are prepared to throw $100 at it, even though the "Current bid" (yours) is only showing $5. The $25 amount is held on eBay's system and is not shown to anybody. If you place that bid on an item with a $5 starting price, eBay's system will only use $5 as your bid. If you notice, eBay calls that your maximum bid amount. EBay's proxy bidding system makes sure you pay no more than you need to to win an auction. It is you - but it is a simple misunderstanding.
aim to win at a price you like or to be outbid at a price where you are glad the other person overpaid. So bid only in the last seconds of the auction and when you enter your amount enter a value at which you would be sad to lose. You shouldn't bid until there is so little time left that humans are unable to respond to your bid and out bid you. you should not be bidding! All that bidding early does is give other people the chance to nudge up the high bidder's bids to explore their limits or to raise the price and become the high bidder. effectively you have just nudged up the amount they will have to pay. so your bid was accepted but their higher bid then shows up. The reason you are being outbid is that the current high bidder entered a value higher than your bid.
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