Proxy bidding allows you to place a bid, enabling our system to automatically bid on your behalf. The goal is to keep you in the lead while ensuring your bid respects the maximum amount you're willing to pay. Here’s a detailed look at how proxy bidding works:
1. If the Reserve Price is Met or There’s No Reserve Price
When the reserve price has been met, or if there’s no reserve price set:
The system places the next incremental bid to keep the auction competitive.
This ensures you don't overpay unless other bidders enter the auction.
Any remaining amount from your bid is saved as a proxy bid, allowing you to stay ahead if further bids are placed.
Example:
Current bid: $150
Your maximum bid: $500
The system places a bid of $160 on your behalf. The remaining $340 is saved as your proxy bid for future bidding.
2. If the Reserve Price is Not Met and Your Bid is Below the Reserve Price
When your bid is less than the reserve price:
Your full bid becomes the current bid.
This ensures that if no one else bids, the auction progresses toward meeting the reserve price, giving you a chance to win.
Without this approach, the auction would end without a winner, even though you were willing to pay more.
Example:
Reserve price: $1000
Current bid: $150
Your maximum bid: $500
Your bid of $500 becomes the current bid since it does not meet the reserve price.
3. If the Reserve Price is Not Met and Your Bid Exceeds the Reserve Price
When your bid is higher than the reserve price:
The current bid is set to the reserve price, meeting the seller’s minimum acceptable price.
The remaining amount is held as your proxy bid to protect your position.
This ensures that if no one else bids, you can still win the auction at the reserve price without overpaying.
Example:
Reserve price: $500
Current bid: $150
Your maximum bid: $900
The current bid becomes $500 to meet the reserve price, and the remaining $400 is saved as your proxy bid.
Why Proxy Bidding Works This Way
By handling bids in this manner, the system ensures:
Competitive and fair auctions: Encouraging participation while preventing overpayment.
Successful outcomes: Maximizing the chances of meeting the reserve price and concluding auctions successfully.
Peace of mind for bidders: Allowing you to lead without constant manual bidding.
If you have further questions about proxy bidding or need assistance, feel free to reach out to our support team!