How to Defend against a Sniper
By  Phil

Snipers win because the people they are bidding against don't use the tools eBay gives members. The most powerful bidding tool provided by eBay is proxy bidding . Here's how it works:

You determine your absolute maximum bid would be. This is the amount that you would absolutly not go above when you'd pay for this item. You should then type that into the bidding page. The ebay proxy bidding system will then gradually raise your bid as other people bid. It will keep you the winner until the auction time runs out and you win, or until somebody bids higher than the amount you entered. It will keep your bid as low as possible, using only the minimum required to keep you the winner.

Since eBay does this automatically, you don't have to be around at the end of the auction to enter your "final bid". In fact, you can enter your "final bid" one time, at the beginning of the auction if you choose, then let it ride until the auction is over. (See the "Why Snipe" section for reasons why you might not want to bid too early.)

If you're counting on entering minimal bids and responding to others as they bid (so-called 'incremental bidding'), a sniper will nail you every time. Snipers bid so late in the auction you don't have time to respond. That's why we recommend you put in your maximum bid -- you're effectively letting eBay bid for you, and eBay is faster than any sniper. A sniper might try for the same auction, but if your bid is higher than her's, you'll win no matter how late the sniper bids.

How do you know what your maximum bid is? Well, imagine that the auction is going on, and you're the leading bidder. You get outbid by 50 cents. Would you be willing to come back and bid yet another 50 cents to become high bidder again? If you answer "yes", then that previous bid wasn't your maximum. I know, that sounds flip. But, you have to decide at what point you'd let the item go, and that's what you bid. Live auctioneers take advantage of this. You're constantly thinking "It's just another buck," and suddenly you find yourself swept $20 higher than you'd planned. That's where eBay gives you an advantage: there's time to think. Auctions last at least 3 days. You've usually got time to do some homework.