How to win an auction


The Evil Act of Shill Bidding

The act of Shill Bidding is condemned byby the terminology that has been thrown
most who partake in the pleasure ofaround in this article. In the interest
online bidding. This unforgivableof ensuring that there is absolutely no
attempt of artificially raising pricesconfusion, let's take two steps back and
on auction items is not only cheeky, butclarify exactly what an 'auction' is.
deviously self-serving.An auction is when an item is listed for
To fully understand the concept of shillsale (more specifically, for bid) with a
bidding, you need to take a step backset starting price and in some cases
and ensure that you comprehend thehave a reserve price where the buyer is
business of auctions - and for therequired to place bids according to the
purpose of this article, online auctionsbid increment set in the auction.
specifically.Before we get ahead of ourselves, let me
An auction website is a platform whichclarify that a bid increment is the
is best explained as being a virtualvalue by which each bid placed increases
shopping channel that enables sellers toduring the auction, and a reserve price
sell their products to autonomousis the minimum price that a seller is
buyers. Many are of the perception thatwilling to accept for an item. A
the auction websites themselves aresuccessful sale is concluded when the
responsible for the sales process,minimum required price has been met
including stock control, shipping of(otherwise known as a 'reserve' price
items and receipt of payment. This is awhich is set at the seller's own
misconception. While an auction websitediscretion).
is a place of trade, the process is veryNow that we have clarified the relevant
different to an e-tailer (i.e. onlineauction 'lingo' you can appreciate why
retailer) in that the stock that is soldmost condemn the act of Shill Bidding.
via online auctions are sourced, soldIt is regarded by most online auction
and shipped solely by the seller who iswebsite owners as a deceitful and
making use of the online auction tool tounderhanded tactic used mostly by
facilitate the sale. It is easier toconniving scam artists. Each auction
explain what 'Shill Bidding' is now thatwebsite will have their own set of terms
you know want an online auction websiteand conditions, however most reputable
is.online auction websites have a strict
Quite simply put, Shill Bidding is whenpolicy against this sort of behaviour
sellers place bids (whether blatantly orand would usually blacklist any seller
under a disguise) on their own listingsfrom using the site in future. In some
with the intent to raise the bid pricecountries, shill bidders have been
in the hope that other bidders wouldcriminally prosecuted for Shill Bidding
feel forced to bid for that item at awhere such prosecutions have resulted in
higher price, thereby artificiallyboth misdemeanor and felony convictions
inflating the perceive market value orand large penalties including fines and
desirably of the product that is onrestitution of damages.
auction.Online marketplaces rely heavily on the
In some instances a relative or familyintegrity and reputation that is
member living with the seller may reallyreflected in its community in order to
want to buy the item that is being sold.become and remain successful. Shill
The reality however, is that theseBidding can destroy the credibility of
bidders are in a situation where theysuch marketplaces very quickly. Not
are usually able to communicate directlyonly does it damage the trustworthiness
with the seller, thereby creating aof the website itself, it completely
unique scenario that is unfair to otherdistorts the bidding process and hurts
bidders that do not have direct contactthe buyer.
with the seller. It would therefore notOnline auctions are certainly not doom
be fair if these potential buyers wereand gloom. In fact, one of the beauties
to bid on the seller's price in anof selling products in an auction is
auction. Should a family member orthat you allow the market to determine
friend genuinely be interested inthe true value of a product, based on
purchasing the product, the sellerthe demand and desirability of that
should resort to listing the item as aparticular item, rather than dictating
straight-forward sale with a fixed priceto the marketplace what the price should
(usually called something like a 'Buybe. Very often this price exceeds the
Now' on the online marketplace). Thisseller's expectations - as what the
removes the risk of misleading otherseller may have regarded as trash may
potential buyers about the market valuevery well be considered a treasure to
of the product, as the price isthe buyer, who will quite happily pay an
specified and can therefore not beabove market price for the simple
inflated at any point in time.purpose of becoming the new owner of
By now you may feel a little overwhelmedthat rare find.



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