ALLBIDS Blog
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Placing Bid
Sunday, 01 January 2017 | Muhammad Awais
What is “Maximum Bid or Proxy Bidding”?
When you place a bid, you enter the maximum amount you are willing to bid for that item
- Let’s say the bidding is at just $20 for an item you would be prepared to bid up to $100. Enter $100 as your maximum bid amount. Your max bid is always kept secret.
- The system will then bid on your behalf, but only enough to beat the other bidder. As the bid is only at $20, the system will register your bid at $22. If other bidders outbid you the system will keep bidding on your behalf up to your max bid amount. You can choose to receive outbid notices by email and SMS.
- At the end of an auction, if you are the highest bidder, you are the winner. As the winner of the auction, you only pay the lowest possible winning bid, not necessarily your maximum bid.
- If the other bidders exceed your max bid you will need to re-bid if you want to stay in the auction.
What is Instant Bid?
Sometimes as part of your auction strategy you may want to jump the bid higher than the normal proxy bid. This is generally used to knock out other
bidders and get the item closer to a final bid value.
When you enter an “Instant Bid” the FULL amount you enter is applied to that auction. This may not be higher than another bidder’s Max (proxy bid), so you may not be the highest bidder.
Let’s say the bidding is at just $5 for an item that’s worth $2000. You might enter and instant bid of $500. The auction bid will immediately go to $500, unless another bidder has put in a higher max (proxy) bid.
An “Instant Bid” usually tell other bidders that you are serious about getting this item.
Your obligation as Bidder
When you use the Service and bid on an item during an online auction conducted on our Site, you are making an offer to buy the item at your bid price. If your bid price is the Winner’s Bid Amount, you will be the Winning Bidder and are obliged to purchase the item you have bid for and pay the Winner’s Bid Amount, plus any additional charges that you may be obliged to pay.
When you use the Service and bid on an item during an online auction conducted on our Site, you are making an offer to buy the item at your bid price. If your bid price is the Winner’s Bid Amount, you will be the Winning Bidder and are obliged to purchase the item you have bid for and pay the Winner’s Bid Amount, plus any additional charges that you may be obliged to pay.
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