AW Daily - Tips & Tactics - During the Auction: Bidding Strategies

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When you think about bidding at online auctions, you're probably immediately concerned with how much you'll bid. That makes sense, but don't forget that the amount you might pay can be directly influenced by when you place your bids. Whether you're driven to get a great deal or determined to own a special item regardless of cost, timing your bid will play an important role in your auction success.

Bid Early, Mark Your Territory
A bid placed in the early days of an auction can work wonders to bring home a win. If you bid on items that show up frequently and have an understood market value, then being the first to bid that value could ensure your success. Other bidders who are also aware of the item's value might bid against you, but they will soon realize your maximum bid has covered the item's market price. If that's the case, competing bidders will often bid on the next auction that comes around. If someone does outbid you, they're probably going to pay more than the item's worth, in which case you'll move on to the next auction that shows up.

Also, an early bid supported by a high maximum bid amount can make you a winner. As others come to bid against you, it's likely that they'll be continually outbid the moment their bids are processed. After a few rounds of this, many bidders might feel intimidated (fearing they could pay too much for the item) and will move along, thinking you have that particular auction well covered.

Some sites (merchant sites in particular) consider an early bid as the tiebreaker for two bidders who've bid the same amount for an item. Even if you're outbid, you can bid again and reclaim high bidder status with a bid that's identical to the one placed by the person who outbid you, simply because you were the first person to bid in the auction.

Lastly, don't forget that some sites offer incentives for early bidders. Auction Universe has FirstBidWins (the name says it all), while Amazon.com Auctions provides First Bidder Discounts. If you're the first to bid on an item, you get a 10 percent discount from the seller if you win the auction. So if you bid at Amazon.com and Auction Universe, consider bidding early.

Bid Often, Stand Your Ground
Another bidding tactic is sentry bidding--placing a bid and then keeping close watch on it for the duration of the auction. If others try to outbid you, you can quickly place a counter-bid to regain your high bidder status. Some bidders can be intimidated when you stand guard over an auction, choosing to outbid others openly as opposed to relying on the site's proxy system. It's a more confrontational approach (though not unfriendly), and, after being outbid a couple of times, other bidders might decide their efforts are futile.

Of course, some bidders may be up for the challenge and will choose to square off with you. This could lead to an all-out bidding war, so be clear on how much you're willing to spend for an item and how closely you can monitor the auction. And beware of the last-second snipe from your worthy opponent.

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