Bidding for your preferred product is a short and customer friendly way to express the value that you find for the product rather than allows the seller to dictate the value they would like to derive from it. But bidding is often a repetitive and time-consuming process that requires a prospective buyer to check the product’s auction status, multiple times and raise his bid accordingly in a live physical auction, these decisions happen, instantaneously, spurred by themes of bidders assisted by their finance, controllers and pricing analysts feeding in relevant data sets and allowing decisioning in in real time.
However, on online auction sites, especially those that graciously allow bidders a larger timeframe like five days or more, movement from other bidders, needs to be tracked over an extended period in time. Some bidders can find it difficult to spare that kind of time and energy. That is where the auto-bidding feature, also called proxy, bidding in certain sites, can come in handy.
Let us first understand how an auto-bidding feature actually works. Below is a hypothetical scenario:
Let us suppose that an auction for a car starts with Rs.10,000 as the starting or the floor price. Now bidder “X” places an auto bid of Rs.25,000. So the system will automatically start building from Rs.10,000 up to Rs.20,000 on behalf of bidder “X”.
Please note that for Cars, the system will bid in increments of Rs.2000 that is 10,000,
12,000, 14,000, 16,000 and 18,000. for two wheelers, this system will bid in increments of Rs.500 that is 10,000, 10,500, 11,000, 11,500 and so on…
However, since the maximum amount is set at Rs.20,000, in new keys, will the system bed for an amount exceeding Rs. 19,500.
Let us now return back to the option. To recap, bidder “X” has set an auto bed with a max cap of Rs.20,000. So the system has already placed a bed for Rs.10,000. Since that is the floor price for the auction.
Imagine now that there is a second bidder, “Y”, who places a bed of Rs.15,000. Since bidder a has subscribed to auto-bidding, the system will please a bid of Rs.16,000(increment of Rs.2000 since it is a car) automatically to ensure that better “X” is still the highest bidder and hence might win the auction.
Had any other bidder, placed a bid of Rs.16,000, this system will still consider bidder “X” as the winner. So auto bid feature gives you priority, even at the same price point!
In essence, for this option, only if any other bidders places a bid of Rs.20,000 or above, do they stand a chance of winning the auction.
Should two bidders set auto-bids at the same level, the one who sets the auto-bid sooner will be given priority. This is how the auto bid feature works.
Not only can you save your time and effort, but also allows you a comparatively better chance at winning an auction. Why not right now?