posted on April 5, 2001 04:26:13 PM new
My Dutch Auction just came off and the high bidder said "The bid that was placed was his high bid and according to all other bids he should not be paying his high bid. The bidding went like this: There is a total of only 5 pieces.
Bidder E...placed a bid of 10.00 for 5pc.
Bidder D...placed a bid of 3.02 for 3pc
Bidder C...placed a bid of 2.77 for 5pc
Bidder B...placed a bid of 2.00 for 5pc
Bidder A...placed a bid of 1.75 for 4pc
Bidder E put a bid of 10.00 but didn't think he would have to pay 10.00 but what you are seeing above is the bid history after the auction.
If bidder D placed a higher bid wouldn't we see the bid amount and then we could understand why bidder E has won the auction for 10.00.
There seems to be a mistake but I don't know how Ebay figures that bidder E has to pay 10.00 when the bidding is only 25 cent increments???????
CAN SOMEONE TELL ME WHAT HAPPENED HERE, I don't know what to do, Also How did Ebay come up with him as the high bidder of 10.00
I wrote to Ebay but who knows when I will hear from them.
posted on April 5, 2001 04:30:38 PM new
There is NO mistake. The regular proxy increment does NOT work with dutch auctions when the entire quantity is bid for.
He bid for the entire quantity. Therefore, HIS bid became the lowest sucessful bid, and he needs to pay $10.00 each.
Now if he had bid for only 4, he would have paid $3.02.
It is his mistake, not Ebay's. Unfortunately, dutch auctions are widely misunderstood, and many don't realize how the dutch bids can jump if they bid for the entire lot.
[ edited by kidsfeet on Apr 5, 2001 04:32 PM ]
posted on April 5, 2001 04:47:36 PM new
My high bidder just emailed me saying
This is his email to me.........
I don't want to complicate your auction, but of you look - one bidder had 3 @ $3.02 and another bid 5 @ $2.77...therefore I should get 3 @ $3.02 plus increment and 2 at $2.77 plus increment (Total 5), all of which exceed your asking $1.75 each. That's how a dutch auction works.
Let me ask you - would you be expecting $1000 each had I BID $1000 each in hopes of outbidding someone who bid $3 each????
What should I do about this, I just said to him I want to find out what happend bucause I don't understand it.
posted on April 5, 2001 04:51:04 PM new
Tell him you are sorry, but that is the way dutch auctions work. The lowest successful bid is the price paid. Since he bid for all the items, HIS BID became the lowest successful bid.
Now, you CAN be nice, and sell them to him for less, and request a refund of the difference in the final value fees.
But, this is NOT a mistake on Ebay's part. This is a bidder who does not understand the dutch auction forum.
And, yes, if he had bid $1,000.00 each, that is what he'd be obligated to pay.
posted on April 5, 2001 04:56:56 PM new
Kidsfeet
Thank you for the information, I email it to him and I will wait to see what he says.
I know he is not going to be too happy.
posted on April 5, 2001 05:06:39 PM new
I wrote to ebay support this afternoon asking them the same question...
They just ans. me (boy was that quick)
I emailed the letter to my high bidder and I will wait for his reply.
They explained it real well, and they said the same thing that Kidsfeet explained to me also.
I kinda understand how it works, but not
100%. I have listed about 25 dutch auctions for the first time so I am learning how it works also.
I will be back to tell you the how I make out with my bidder.
Later when bidder B bid, bidder B was going to get all 5 at $2 and A was out of the running.
When C bid he knocked out B. C got all for $2.77 each
When D bid on 3 there were still 2 available so the lowest price that allowed for all 5 to be sold was C's $2.77...so D got 3 at $2.77 and C was left with only 2 at $2.77..but C wanted 5. since C cannot get all 5 he is not obligated to take any. so you could have sold 3 at $2.77 to D and none to C.
When E came on his bid of $10 each for 5 knocked out everyone else. His is now the lowest BID which will allow all 5 to be sold. He pays $10 each...the other bids are now null and void.
posted on April 5, 2001 05:58:24 PM new
Tonimar, I was confused about Dutch auctions last week when I read that proxy bids don't apply, and I started a thread here asking for advice. Kidsfeed very kindly replied to me, and I ended up saving about $25! I couldn't be home and wanted to use esnipe to make my bid, but I wanted to make sure that I would pay the lowest possible amount. I had to settle for one less widget than I really wanted, but I got a tremendous bargain out of it!
BTW the same seller had another Dutch auction running, and the same thing happened to the high bidder in that one as happened to your bidder--he wanted all of them and ended up paying almost twice as much as he should have!
