How Was I Outbid By Less Than an Increment? by sir_snipes_alot

This is a question that is asked quite frequently, and can be somewhat confusing at first glance. Some bidders sometimes even think that this is a malfunction of the bidding software - that is not the case - rather it is an example of the bidding system working exactly as it was designed.

When bidding on eBay it is always wise to remember a few key points. First - you are not the only one on eBay that can use proxy bidding - other bidders may proxy bid also. Second - while you know your own proxy amount you can never know what another bidder's amount is, it may be what is shown as the current bid, or it may be a proxy bid for a much higher amount.

Finally, the key point in this situation to remember is that when placing a bid - the bidder must only outbid the current bid by one increment - not the full proxy bid by a full increment.

Here is an example of winning by $0.11

• An auction item is listed with a starting price of $1.00

• Bidder A enters a proxy bid for $10.00 and takes the lead at the $1.00 starting price

• Bidder B enters a proxy bid for $10.11 - his bid must only be one increment above the previous high bid - in this case $1.25

• The proxy bids then battle it out and Bidder B wins the auction with his bid of $10.11 - less than an increment above Bidder A's proxy bid of $10.00

Sir Snipes Tip: When ever you place a proxy bid, always determine the maximum amount you would ever possibly pay for the auction item, and then add a few odd cents to the amount - you will find yourself winning more auctions, sometimes by as little as $0.01.