| The act of Shill Bidding is condemned by
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| | around in this article. In the interest
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| most who partake in the pleasure of
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| | of ensuring that there is absolutely no
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| online bidding. This unforgivable attempt
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| | confusion, let's take two steps back and
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| of artificially raising prices on auction
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| | clarify exactly what an 'auction' is. An
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| items is not only cheeky, but deviously
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| | auction is when an item is listed for
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| self-serving.
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| | sale (more specifically, for bid) with a
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| To fully understand the concept of shill
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| | set starting price and in some cases have
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| bidding, you need to take a step back and
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| | a reserve price where the buyer is
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| ensure that you comprehend the business
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| | required to place bids according to the
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| of auctions - and for the purpose of this
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| | bid increment set in the auction. Before
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| article, online auctions specifically.
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| | we get ahead of ourselves, let me clarify
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| An auction website is a platform which is
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| | that a bid increment is the value by
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| best explained as being a virtual
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| | which each bid placed increases during
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| shopping channel that enables sellers to
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| | the auction, and a reserve price is the
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| sell their products to autonomous buyers.
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| | minimum price that a seller is willing to
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| Many are of the perception that the
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| | accept for an item. A successful sale is
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| auction websites themselves are
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| | concluded when the minimum required price
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| responsible for the sales process,
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| | has been met (otherwise known as a
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| including stock control, shipping of
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| | 'reserve' price which is set at the
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| items and receipt of payment. This is a
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| | seller's own discretion).
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| misconception. While an auction website
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| | Now that we have clarified the relevant
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| is a place of trade, the process is very
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| | auction 'lingo' you can appreciate why
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| different to an e-tailer (i.e. online
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| | most condemn the act of Shill Bidding.
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| retailer) in that the stock that is sold
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| | It is regarded by most online auction
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| via online auctions are sourced, sold and
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| | website owners as a deceitful and
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| shipped solely by the seller who is
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| | underhanded tactic used mostly by
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| making use of the online auction tool to
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| | conniving scam artists. Each auction
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| facilitate the sale. It is easier to
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| | website will have their own set of terms
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| explain what 'Shill Bidding' is now that
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| | and conditions, however most reputable
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| you know want an online auction website
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| | online auction websites have a strict
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| is.
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| | policy against this sort of behaviour and
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| Quite simply put, Shill Bidding is when
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| | would usually blacklist any seller from
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| sellers place bids (whether blatantly or
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| | using the site in future. In some
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| under a disguise) on their own listings
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| | countries, shill bidders have been
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| with the intent to raise the bid price in
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| | criminally prosecuted for Shill Bidding
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| the hope that other bidders would feel
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| | where such prosecutions have resulted in
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| forced to bid for that item at a higher
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| | both misdemeanor and felony convictions
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| price, thereby artificially inflating the
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| | and large penalties including fines and
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| perceive market value or desirably of the
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| | restitution of damages.
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| product that is on auction.
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| | Online marketplaces rely heavily on the
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| In some instances a relative or family
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| | integrity and reputation that is
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| member living with the seller may really
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| | reflected in its community in order to
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| want to buy the item that is being sold.
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| | become and remain successful. Shill
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| The reality however, is that these
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| | Bidding can destroy the credibility of
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| bidders are in a situation where they are
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| | such marketplaces very quickly. Not only
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| usually able to communicate directly with
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| | does it damage the trustworthiness of the
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| the seller, thereby creating a unique
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| | website itself, it completely distorts
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| scenario that is unfair to other bidders
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| | the bidding process and hurts the buyer.
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| that do not have direct contact with the
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| | Online auctions are certainly not doom
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| seller. It would therefore not be fair
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| | and gloom. In fact, one of the beauties
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| if these potential buyers were to bid on
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| | of selling products in an auction is that
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| the seller's price in an auction. Should
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| | you allow the market to determine the
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| a family member or friend genuinely be
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| | true value of a product, based on the
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| interested in purchasing the product, the
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| | demand and desirability of that
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| seller should resort to listing the item
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| | particular item, rather than dictating to
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| as a straight-forward sale with a fixed
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| | the marketplace what the price should be.
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| price (usually called something like a
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| | Very often this price exceeds the
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| 'Buy Now' on the online marketplace).
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| | seller's expectations - as what the
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| This removes the risk of misleading other
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| | seller may have regarded as trash may
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| potential buyers about the market value
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| | very well be considered a treasure to the
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| of the product, as the price is specified
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| | buyer, who will quite happily pay an
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| and can therefore not be inflated at any
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| | above market price for the simple purpose
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| point in time.
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| | of becoming the new owner of that rare
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| By now you may feel a little overwhelmed
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| | find.
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| by the terminology that has been thrown
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