A Bidding Strategy for On-line Auctions

Love it or hate it, on-line auctions – particularly the giant eBay – have gone mainstream in the antiques and collectibles field. There is hardly a collector or dealer who is not buying or selling on eBay, or at least looking at prices realized for information.

But few seem to have mastered successful bidding and so many report buying disappointments. Check your own practices and experiences with the following strategy for antiques and collectibles.

When you have found an item you think you want, its time to become a detective. Read all of its description, scrutinize the pictures and ask questions until you are convinced it is identified properly, its condition is accurately described, the terms of sale are acceptable to you, and the shipping cost is known and acceptable. Check the seller’s reputation through the feedback system, not just through the overall numbers but delve into the actual comments especially if the total feedback rating is relatively low – less than several hundred.

An eBay auction is substantially different than a traditional auction because bidding ends suddenly at a fixed point in time.

First, you need to determine the absolute maximum you want to pay for the item.

Then subtract off the shipping and insurance costs, sales taxes if levied, and any other required fees and the remainder is your maximum bid.

This maximum bid then needs to be entered as near the end of the auction as possible – preferably within five to seven seconds of its close – this is called “sniping.” Perfectly within on-line auction rules, it is a valid bidding technique. If you will not be available to enter your bid personally, another option is to use a “sniping” service.

Though entering your bid late in the process dramatically increases your chances of winning, be aware that it is the highest bidder, not the last that wins in an on-line auction. So, determining your maximum bid is really the key step in successful buying.

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Printed with permission. West Suburban Living magazine March/April 2006

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