If you are a user of eBay then the chances are, that you have already come across the term “shill bidding". Shill bidding, is bidding that is used to artificially inflate the price of a certain item. Shill bidding usually takes place when the seller of an item wishes to increase the price, or generate interest in the item. The seller would usually get a friend or family member to bid on the item in question so that it looks like the item is more popular than it actually is, sometimes the seller may also use a second eBay account to increase the price of the item.
Shill bidding is prohibited by eBay and rightfully so. In my time I have been the victim of a shill bidding eBay scam. I was bidding on a digital camera and was surprised to see the price increase dramatically every time I made a bid, each bid that I made was followed by a new bid from an eBay user without any feedback. I thought this was very strange so I contacted eBay, they confirmed to me that the seller was using a second account to increase the price of the item, in the hopes that I would keep bidding and be made to pay a higher price. The listing was pulled by eBay and the seller had both of their accounts suspended. I was lucky but unfortunately many others are not so fortunate.
Shill bidding is a huge problem on eBay and you may have already been a victim of this scam without even realising it! Hopefully after reading this guide you will be able to spot if a shill bidder is bidding on one of your auctions.
The first step to take if you feel you have been a victim of shill bidding is to look at the “Bidders List" for the item that you are bidding on. Usually an account that is used for shill bidding will have very little, if any feedback. The account could even have been created within the last 30 days with the sole intention of shill bidding for the seller, you can see if the member is new as they will have a small orange icon next to their user ID.
You should also do some research into the sellers other sales. Look at the sellers other sales via their feedback profile and see if the shill bidder was bidding on those items as well. If the shill bidder was bidding then the chances are that the seller is using a second account, or the account of a friend to shill bid.
Finally, another favoured method to spot a shill bidder is to look at how much the bids are increasing by. Usually a shill bidder will only place a “Nibbler" bid, this is a bid that is only slightly higher than your bid but then puts the impetuous on you to bid on the item again. The shill bidder will keep on bidding until you stop, they will then retract their final bid leaving you to pay for the item at a higher price than you should have paid!
If you believe that you have been a victim of a shill bidding scam or think that an eBay member may be shill bidding then you need to contact eBay. You can contact eBay using the contain form on their site, if eBay finds that the user has indeed been shill bidding then the all of the accounts associated with the shill bidder will be suspended.
Automatic Bidding On Ebay
There are instances where I put a bid on eBay and such online auction sites assuming that the bid I placed is the highest and then suddenly prior to the closing of the auction, some clever person just outbids me and takes the dream away. I call him a sniper. A guy (not always a person) sitting just for the target to come out and BOOM! The target is gone.
Auction sniping on eBay and other auction sites is a method where the bidder waits until the last, maybe just seconds before, to bid on the auction prior to the auction's close. This often ensures that the snipe bidder's bid precludes competing bids and wins the bid at the lowest price. This technique is being used increasingly by bidders and there are automated bots available to ensure that the snipe bidder win the auction with consistency.
Ebay estimates that approximately 10-15 % of all closed bids are being won today by eBay snipe bidders. They are not complaining, and if some quarters are, their resentment is not very vocal today. The seller is getting the true price, or so he thinks, the middle agency is getting its share of commission; the buyer is living to bid another day. Its guys like me who wait patiently for a long time, for a nice thing to come up, and end up losing it to a last second bid.
Snipe bidding at eBay and other auction sites is not without its share of problems. First, the snipe bidder has to be online just at the time the auction is to close. This becomes a hassle in case of time zone changes. The iPod available at the discounted value might just be lost if the closing time happens to match with your siesta time. To come to your rescue are automated programs called snipe-bots which can be programmed to make the best bid at the time of close of an auction.
The next problem is that of available bandwidth and response of the server. Matching the correct time has a lot of variables. The time it takes for your bid to register at eBay, the bandwidth availability at the critical time of placing the bid, the competing sniping software through which others are bidding on the same product, and of course the associated security issues are some of the random variables that have to be taken into account prior to resorting to manual snipe bidding.
There are however, some automated services available on the internet which reside on servers which are always on and provide a timed bid facility. They scan the eBay auction which has been entered at the time of initiation and determine the current winning bid. At the time of close of the auction, they feed another bid with the required amount so that the winning bid is theirs.
The software can be used for a variety of auctions like the English auction, the second highest auction and the open auction to name a few. They are custom made and can also be effectively be used to evade Twain marks, or the symbol entry facility being increasingly used today to evade automated programs. The security of your eBay id and password are however threatened by some not so certified software agents.
Snipe bidding is gaining popularity and the sniping software is getting more and more advanced. The advantages of sniping on eBay are many which include prevention of nasty emotional bid wars where people keep bidding and counter biding each other. This leads to an overpriced auction, not advantageous to the final winner of the bid. The process of the auction is getting automated and soon it just might become a case of a software winning against another on eBay. Snipe bidding is advantageous to an auction bidder and an accepted practice today. Try it and you might benefit. But for guys like me, we will have to walk to the nearest store get what I desired; at the price the shopkeeper dreamt of.
Both Dan Thompson & Isabel Baldry are contributors for EditorialToday. The above articles have been edited for relevancy and timeliness. All write-ups, reviews, tips and guides published by EditorialToday.com and its partners or affiliates are for informational purposes only. They should not be used for any legal or any other type of advice. We do not endorse any author, contributor, writer or article posted by our team.
Dan Thompson has sinced written about articles on various topics from How to Sell on Ebay, Fitness and self improvement and motivation. Dan Thompson is a successful eBay Power seller and has recently opened a new website that allows members of the public to report . The website also cont. Dan Thompson's top article generates over 1600 views. to your Favourites.
Isabel Baldry has sinced written about articles on various topics from Science, How to Sell on Ebay and Home Improvement. Isabel Baldry is a freelance writer who writes passionately about a number of subjects. Learn more about here.. Isabel Baldry's top article generates over 40500 views. to your Favourites.
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