A generally wise bidding strategy
by Tyler Jones

Here is my canned response on the best bidding strategy on eBay. If you need more information, please let me know, giving details about the problem at hand.

In my opinion, the best bidding strategy on eBay, given their current rules, consists of 3 steps.

1. Determine, in advance, the absolute most that you would ever pay for an item. This amount should be so high that you know that you would never, ever, pay more than this. This is called your True Max Bid.

2. Make one bid and one bid only.

3. Bid as close to the end of the auction as you can.

Number 3 is not completely necessary. In fact, eBay recommends that you bid as early as you can, possibly to avoid power outages and auctions ending early. However, utilizing step 3, "sniping", helps to avoid such things as shill bidders, lowball bidder, halfball bidders, nibble bidders, enemy bidders and parasite bidders.

There are those who say that is impossible to determine their maximum bid without first bidding a small amount and engaging in a contest wherein many bidders outbid each other in small amounts until all but one gives up. This is the normal format in a Going, Going, Gone Auction. However, this strategy does not work on eBay. This is the first lesson you must unlearn. On eBay, the key to good bidding is this: You must outbid everybody else BEFORE they bid!

To the new person, this may sound strange, but it works. For help in determining your True Max Bid before you place one bid, visit this page.

This page contains a step by step process to figure out your True Max Bid. You may not be able to narrow it down to the exact penny or dollar, but my guess is that most people can get pretty close.