How do auctions work on eBay?

eBay is still the go-to platform for online auctions. Although there is a large marketplace section dedicated to direct purchases, the service’s real strength is the ability to purchase products by challenging other users with bids.

But how do eBay auctions work in detail? How can you list an item for sale? There are helpful tips for winning auctions easily and taking home products at bargain prices.

In this guide, we’ll see everything you need to know about a system that’s still very popular on the web.

What are eBay auctions

Auctions on eBay are the selling method that has made the platform most famous. We’re talking about a system that, like traditional auctions, allows buyers to bid on a product.

There’s a predetermined time period, after which the item is sold to the highest bidder. The highest bidder is chosen by the seller, who can set an auction duration from 1 to 10 days, establish a starting price, and add extra options such as a reserve price or a Buy It Now option.

Buyers also have interesting tools to leverage to optimize their purchases. One of these is automatic bidding, with a maximum bid limit that is set before handing everything over to eBay, which will then gradually raise the bid until the limit is reached.

How to Find an eBay Auction

The first thing to do is find an auction on eBay. Over the years, the e-commerce platform has decided to focus more on its marketplace in the traditional form of e-commerce, namely Buy It Now.

However, you can still find thousands of items up for auction from private advertisers. To do so, open the eBay website and then search for an item that might interest you. You’ll be shown all available items, both for sale and up for auction.

To find only those items up for auction, set the "Online Auction" filter and, after a few moments, the page will reload, displaying only those listings that offer the option to raise a bid.

How to bid on an eBay auction

Now that you’ve found the product you’re interested in and the starting price is within your budget, you’re ready to place your first bid on the open auction.

Open the item’s main page and you’ll be able to view the model, product name, some images, description, and condition. Next, you’ll see the auction’s starting price and the currently active highest bid.

If you want to raise your bid, simply click "Place a bid." Here, you’ll have two options: "Manual bid" or "Automatic bid." In the first case, you can enter a specific amount and proceed with a single raise. In the second, you enter the maximum amount you’re willing to pay, and eBay will gradually raise the bid.

How to Win an eBay Auction

Have you decided to take part in an eBay auction and want to take home the item you’re considering? Since it’s an auction, there’s no guarantee that you’ll win it. However, there are certainly some tips that can be useful to help you get the best price.

First, decide on a limit that you can’t go beyond. Once you’ve set your budget, you’ll be ready to bid, taking your competitors’ strategies into account. If the item is used, use the 50% rule, meaning never bid more than half the price of a new item. If it’s new, however, the price is usually 25% less than the list price.

Another key aspect is checking the time left before the auction ends. Typically, you can snag the best items at a discounted price with just a few minutes left until the end. This is the period with the highest concentration of high bids and increased bids.

If you find an auction with few interested parties and a low final bid, by raising your bid, you can win it without spending too much.

To never lose sight of an item, you can consider adding it to your watch list. This way, you’ll receive a notification when the end is just a few minutes away.

Finally, try not to raise your bid too many times, increasing your offer by a few euros. The ideal, auction experts say, is to proceed with few but good raises. This way, you’ll immediately understand how the auction is positioning itself and how much you can actually influence the final price.

What are the advantages for buyers

Using a buying and selling system like eBay’s auction system brings several advantages, for both buyers and sellers.

Starting with those who want to buy an item at auction on eBay, one of the biggest advantages is the aforementioned automatic bids. This way, you don’t have to monitor bids and you can be sure you won’t go over your budget.

Another factor is the reserve price, which is a minimum price below which the seller will not sell the item. Having it available immediately gives the buyer a clear idea of how much they can spend.

Finally, there are bids and strategies for winning. In addition to your budget, cunning mechanisms come into play here, often offering significant immediate advantages.

What are the advantages for sellers

Obviously, for sellers, there are several advantages to selling an item at auction as well. These include the ability to set a starting price, an auction duration, and a reserve price. These three elements are useful for keeping an eye on your listing, so you can receive the right compensation when you want it.

If you don’t want to wait, the "Buy It Now" option is a great option for immediate purchase. The price must be at least 40% higher than the auction’s starting price, and this often allows you to earn more than the list price.

Finally, selling at auction is always a gamble. Especially in terms of earnings, because if you have a product particularly popular with collectors or enthusiasts, there’s a chance that bidding will skyrocket, resulting in earnings even 10 times more than initial expectations.

How to List an Item on eBay

Do you have an item you think might interest potential buyers and want to list it on eBay? It’s simple! There are a few quick steps to complete the transaction successfully.

First, open the eBay website and log in with your profile. Once inside, tap "Sell" and, if necessary, confirm your personal and payment information.

In the next window, you’ll be asked to describe the item by filling in all the category-specific fields (e.g., brand, condition, size, etc.). It’s very helpful to add photos, especially if they’re high-quality, to increase interest in your listing.

Next, select the "Online Auction" format and set a starting price and duration. You can then configure your shipping and payment options, and publish your listing. It will be published on the site after the standard checks by the eBay team.

What to do after winning an auction on eBay

Have you just won an auction on eBay? Once you receive the notification, you must act immediately to avoid losing the product (with no way back).

You have 4 days to complete the payment, otherwise the seller may cancel the order and record a non-payment on your account. Afterwards, it will be the advertiser’s responsibility to prepare the shipment and send you the tracking code as soon as it is available.

Now you can check shipping status and wait for it to be delivered to your home. Once received, eBay recommends verifying that the product is as described. Once this is done, confirm receipt of the item on the site, and the transaction is complete.

If the item doesn’t arrive, is damaged, or isn’t as described, you should contact the seller immediately through eBay. The seller has 3 business days to respond to any return or refund requests; otherwise, the e-commerce portal’s support team will be involved.

Note: Some details (fees, payment windows, shipping terms) may vary depending on the country/region (US or UK). Always check local eBay site terms.

Original article published on Money.it Italy. Original title: Come funzionano le aste su eBay?