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Invalid Bid

On eBay, only registered users can bid, and any bid itself entered into the system is valid. Nevertheless, there are some specific styles and techniques of bidding that eBay recognizes as invalid.

Shill Bidding  
 

Perhaps the most talked-about of the various invalid strategies. Shill bidding is the act of bidding to deliberately and only raise the price of the item. Often, but not always, this is an act of collusion between the seller and friends, who try to get their buddy a better price. Sometimes, a seller will bid on his own items through other id's. The most easily recognized form of this is when somebody makes a huge bid, exposing the current leaders proxy, then retracts and bids just under it. Other tactics are more complex, often with rings of people helping each other out. Shilling often results in expulsion from eBay, although it is very hard to prove.

Lone Gunman shilling is a supposedly altruistic, albeit perplexing, style of bidding. As far as I know, only the king of small price engages in this style, assuming he's telling the truth. A Lone Gunman searches auction pages. If he finds an auction where the seller, in the opinion of the Lone Gunman, is getting less than a fair price, then he will bid one or more times until he is satisfied that the seller is getting a price that meets the Lone Gunman's approval.

The Lone Gunman will often claim that he's not shilling, and say that shilling is only the result of collusion between buyer and seller, although this is completely contradicted by eBay's rules. Until a court of law rules otherwise, shill bidding on eBay is exactly what eBay says it is, and the current rules do not say that shilling must be the result of collusion.

Lone Gunman Shilling is odd. One the one hand, they claim the high ground and they claim that they are interested only in the pursuit of fairness. However, their actions will often result in one of two things. They will either win the auction, preventing somebody else from getting an item that they wanted, or they will force the bidder to pay more. As for the second option, which is the main goal of the Lone Gunman, this may be fair for the seller, but how is it fair to the bidder?

It's not the job of somebody else to determine what is or is not a "fair" price, and it's not anybody's role to artifically inflate prices. "Fairness" does not mean forcing people to pay as much as possible.

 

Bid Shielding  
  Something like reverse shilling. Bid Shielding occurs when a bidder or group of bidders make one low bid on an item, then two extremely high bids, all with different ids. The two high bids push the current amount far above any amount that most people would pay. Near the end of the auction, when it's too late for most people to respond, they retract the high bids, leaving the lowball bid as the sole winner.

New retraction rules make this style of bidding more difficult to perform. The new rules were originally designed to reduce shill bidding, but IMHO will actually be more effective against bid shielding.
Enemy Bidding  
 

On eBay, there are chat boards where members exchange ideas, questions, and a great deal else. Often, some of the discussions can get quite heated and many times hurt feelings are the result. Sometimes, a person who gets angry or offended at a post will seek revenge on the person that caused the insult. They will follow the person around eBay, bidding on everything they bid on, seeking either to prevent the bidder from winning or forcing them to pay as much as possible. This is much like Lone Gunman Shilling, but with a different focus. In this case, the Enemy Bidder is specifically targeting one buyer in particular.

In response, many people have posting id's that have no relation to their buying id, and of course sniping is a great defense against this tactic.

Auction Stalking  
  This has often been called a benevolent form of Enemy Bidding. In this case, the Stalker becomes an admirer of the victim. The victim may be known as an intelligent buyer who only bids on high-quality items after doing a great deal of research. The stalker is interested in the same kind of items, but has neither the desire to research nor the ability to tell good items from bad. Rather than take a chance, the Stalker simply follows the victim around, bidding on everything he does, figuring that any item the victim bids on MUST be good.

While it may be flattering to have a Stalker, the result is similar to Enemy Bidding. You will either fail to get items that you want, or you will be forced to pay more than you would under normal conditions. Again, posting id's and sniping are good tools to avoid this.
Feedback Bombing  
 

The act of bidding on a sellers auction only to leave them negative feedback minutes later.

This often happens as the result of bad blood between two people. The offended part seeks to "get even" with the seller by ruining their auctions. Arguements on the chat boards are a common source of this, and this is a large reason why so many people have posting ids. Of course, hard-core anti-snipers claim that this problem does not exist, but they're just showing off their ignorance.

Since this hostility is directed at the seller, sniping cannot really defend against it, unless you bid more than the bomber, in which case the bomber will just bid again on another of the seller's auctions.

Nuclear Bidding  
  The act of bidding an extremely high amount on an item, simply to guarantee a win. The Nuclear Bidder safely assumes that nobody else will bid all that much on the item, and is satisfied to simply pay one increment over the True Max of everybody else.

Snipers are often accused of this, but it's impossible to prove, and even if it does happen, it's a bad idea. Suppose that you routinely bid $50,000.00 on every item, and win everything. It's my experience that you'd probably brag about your great winning percentage. Somebody else notices this and decides to become a Nuclear Bidder also. Now you have two people on eBay, bidding astronomically high amounts. These two people have great success. Other people notice this, and join the crowd. Now you may have 50 people doing this, then 10,000, then a million. Eventually, these Nuclear Bidders are going to bump into each other, and then you've got problems.

Since I have seen dozens of auctions end with multiple snipers and no auction I have ever seen has gone "astronomical", I assume that Nuclear Bidding is not prevelant on eBay.

Any conclusions?

Don't break the rules, don't harass other people, only bid on items that you want, and never bid more than you are willing to pay.
  by Tyler Jones 


 

 


 

 

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