A proxy bidding auction allows you to bid the maximum amount you are willing to pay for
an item and then it places bids for you (as your proxy) as necessary, so
you don't have to constantly monitor your auctions to place the winning
bid. Your
maximum amount will always be kept secret. Whenever someone else places a
bid against you, our auction software will
automatically enter the lowest possible bid for you (at one bid
increment* over the new bid) keeping you the winning bidder until you
win the auction or your
maximum is outbid.
As the winner of the auction, you only
pay the lowest possible winning bid, not necessarily your maximum bid.
Example: The opening bid on an item is
$3.00 and there are no bids. You decide to bid on the item and
the top price you will pay is $7.00. You place a bid for $7.00 but
you will be the current high bidder at $3.00 (and the winner
of the auction at $3.00 if no one else bids). Sometime later, before the item
closes, another bidder bids $5.00, but you will still be the current high
bidder at $5.25 (one
increment* over the second highest bid). Still later, but before
the item closes, another bidder bids $9.00, then they become the current
high bidder at $7.25. You always have the option of placing
another bid if someone outbids your maximum (ChildrensBookAuction
automatically notifies you by email when someone else outbids your
maximum bid).
When Proxy Bidding is in effect, it can appear as if one bidder has
beat another bidder with the same bid amount. This is normal and occurs
when a bidder has a proxy bid in effect and a second bidder comes along
and makes their bid at the exact same amount the current proxy bid is
at. Since the proxy bid was placed earlier, that is the bid that will
succeed. For the second bidder to succeed in placing a bid, they must
bid higher than the proxy bid that is in effect.