Dutch Auction Facts.
1.) If quantity available is more than the total quantity bid for (including other bidders), the opening bid is the current price everyone pays. The bid history will show all winners bids at the current price, even if they were willing to pay more and entered a higher bid.
2.) If the total quantity bid for is equal to or more than the quantity available, the lowest winning bid is the current price everyone pays. Again, the bid history will show all winners bids at the current price, even if they were willing to pay more and entered a higher bid. Note: If you are the only bidder and bid for all items available you will be the lowest winning bidder, and pay the amount of your bid... NOT the opening price.
3.) If the quantity won is less than the quantity bid for, you are NOT required to buy. It might be nice to let the seller know in case they want to make a second chance offer to an underbidder.
4.) The bid history is in amount order. Highest bid is on top, and the lowest bid is on the bottom. In case of a tie, earliest bid is on top, latest bid is on the bottom. If you are listed in the bid history, all bids above you were either entered before yours, or higher than yours. All bids below you are either bids placed after yours, or for a lesser amount. (including the winners)
5.) If you place a minimum bid, you will move into a winning position on the bid history page and will be winning at least one (at least temporarily). If bidding for more than one, you may, or may not be winning all of them because of an earlier bid, or a higher bid by someone else.
6.) Multiple bids by the same bidder are not possible, that is, you can not bid on two items, one at $8 and another at $10. Instead you should place a single bid for 2 @ $9 each. A second bid can be placed, but it replaces the first. The first bid will no longer appear in the bid history.
7.) A second bid may be placed, but the total value (quantity x price) can not be less than a previous bid.
Example
First bid placed is 2 @ $10 each. You can not place a second bid for 1 @ $12 because the total value is less. You MAY place a second bid for 1 @ $25 because the total value is greater. If the minimum bid is still low enough you may also place a bid for 3 @ $7 each. Be careful about getting ‘sneaky’ here... a bid placed is a binding contract to pay... up to your max..
8.) It is very possible to snipe a Dutch auction. (hint: sometimes it’s a good idea to nibble) If you only want one, you will want to know about fact 5. If you want more than one, you will also want to study fact 4 and 7.
Did I miss anything?
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