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

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During the Auction: Bidding Strategies continued ...

Bid Late, Catch Them Napping
If you like more excitement when it comes to bidding, then a last-minute swoop is just the ticket. That's right, we're talking about sniping, a practice that folks either love or hate. Regardless, it's the best way to catch other contending bidders off guard. If a site is snipe friendly (like eBay and Yahoo Auctions), your last-second bid can often get you a decent price without leaving opportunity for others to challenge you. Make sure your maximum is hefty enough to thwart the current high bidder or you'll succeed only in gaining a last-second "you have been outbid" message.

There are inherent risks in sniping. If you wait too long to bid, the auction could close before your bid is processed. If your maximum doesn't beat the current high bidder, you won't have a second chance to up the ante. And don't overlook the fact that you could be in the company of other snipers who are ready to snipe your snipe. It happens all the time.

The greatest advantage of sniping is it affords you anonymity among the other bidders. If you're a long-time bidder, others who bid on the same items as you will recognize your user ID. Some might even "ride your coattails," performing site searches on what you're bidding on, then perhaps bidding against you. If you choose to snipe, the other bidders won't know where you'll strike next, and that can mean more wins and frequently better prices for you.

Does sniping work for autoextension auctions? In a way, yes. Though such auctions extend the ending time five or ten minutes when last-minute bids are placed, you might still have the opportunity to emerge victorious if the previous high bidder isn't actively monitoring their bid status. The extra five or ten minutes can seem like an eternity. If competing bidders are watching the auction closely, though, you might get into a bid battle until one of you tires and throws in the towel.

Don't Bid At All
If the price of an item climbs too high, it's OK not to bid. Even seemingly impossible-to-find items tend to show up time and again at the auction sites. If an auction item you want skyrockets in price, it could be the sign of a bidding war between two (or more) impassioned bidders. It's best to walk away from that particular auction and wait for the same item to show up in another auction. If an item sells at an extremely high price, you can bet other sellers with the same item have taken note and will be putting theirs up for bid. Follow-on auctions usually don't bring in the same high price, though. It's possible a losing bidder will drop a hefty bid if the item surfaces a second time, but if a quantity of these items surfaces, the supply soon outweighs demand and you'll be more likely to get a better price.

With that in mind, discipline yourself not to bid on the first item you see. Auctions usually run for several days, so take advantage of that and shop around. You might find the same item in better condition, or you might find an entirely different item you'd much rather own. Use the auction marketplace to your advantage, and be choosy. Your patience will rarely go unrewarded.

Beating Out a Snipe
Backing Out of a Bid