How to win an auction


The Evil Act of Shill Bidding

The act of Shill Bidding is condemned by mostBy now you may feel a little overwhelmed by
who partake in the pleasure of onlinethe terminology that has been thrown around
bidding. This unforgivable attempt ofin this article. In the interest of ensuring
artificially raising prices on auction itemsthat there is absolutely no confusion, let's
is not only cheeky, but deviouslytake two steps back and clarify exactly what
self-serving.an 'auction' is. An auction is when an item
is listed for sale (more specifically, for
To fully understand the concept of shillbid) with a set starting price and in some
bidding, you need to take a step back andcases have a reserve price where the buyer is
ensure that you comprehend the business ofrequired to place bids according to the bid
auctions - and for the purpose of thisincrement set in the auction. Before we get
article,  online  auctions  specifically.ahead of ourselves, let me clarify that a bid
increment is the value by which each bid
An auction website is a platform which isplaced increases during the auction, and a
best explained as being a virtual shoppingreserve price is the minimum price that a
channel that enables sellers to sell theirseller is willing to accept for an item. A
products to autonomous buyers. Many are ofsuccessful sale is concluded when the minimum
the perception that the auction websitesrequired price has been met (otherwise known
themselves are responsible for the salesas a 'reserve' price which is set at the
process, including stock control, shipping ofseller's  own  discretion).
items and receipt of payment. This is a
misconception. While an auction website is aNow that we have clarified the relevant
place of trade, the process is very differentauction 'lingo' you can appreciate why most
to an e-tailer (i.e. online retailer) in thatcondemn the act of Shill Bidding. It is
the stock that is sold via online auctionsregarded by most online auction website
are sourced, sold and shipped solely by theowners as a deceitful and underhanded tactic
seller who is making use of the onlineused mostly by conniving scam artists. Each
auction tool to facilitate the sale. It isauction website will have their own set of
easier to explain what 'Shill Bidding' is nowterms and conditions, however most reputable
that you know want an online auction websiteonline auction websites have a strict policy
is.against this sort of behaviour and would
usually blacklist any seller from using the
Quite simply put, Shill Bidding is whensite in future. In some countries, shill
sellers place bids (whether blatantly orbidders have been criminally prosecuted for
under a disguise) on their own listings withShill Bidding where such prosecutions have
the intent to raise the bid price in the hoperesulted in both misdemeanor and felony
that other bidders would feel forced to bidconvictions and large penalties including
for that item at a higher price, therebyfines  and  restitution  of  damages.
artificially inflating the perceive market
value or desirably of the product that is onOnline marketplaces rely heavily on the
auction.integrity and reputation that is reflected in
its community in order to become and remain
In some instances a relative or family membersuccessful. Shill Bidding can destroy the
living with the seller may really want to buycredibility of such marketplaces very
the item that is being sold. The realityquickly. Not only does it damage the
however, is that these bidders are in atrustworthiness of the website itself, it
situation where they are usually able tocompletely distorts the bidding process and
communicate directly with the seller, therebyhurts  the  buyer.
creating a unique scenario that is unfair to
other bidders that do not have direct contactOnline auctions are certainly not doom and
with the seller. It would therefore not begloom. In fact, one of the beauties of
fair if these potential buyers were to bid onselling products in an auction is that you
the seller's price in an auction. Should aallow the market to determine the true value
family member or friend genuinely beof a product, based on the demand and
interested in purchasing the product, thedesirability of that particular item, rather
seller should resort to listing the item as athan dictating to the marketplace what the
straight-forward sale with a fixed priceprice should be. Very often this price
(usually called something like a 'Buy Now' onexceeds the seller's expectations - as what
the online marketplace). This removes thethe seller may have regarded as trash may
risk of misleading other potential buyersvery well be considered a treasure to the
about the market value of the product, as thebuyer, who will quite happily pay an above
price is specified and can therefore not bemarket price for the simple purpose of
inflated  at  any  point  in  time.becoming the new owner of that rare find.



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