What is Proxy Bidding?
Proxy bidding is an automated bidding system that allows buyers to set a maximum bid amount they're willing to pay for an item. Selling Lane then automatically places bids on their behalf, incrementally increasing their bid as needed to maintain their position as the highest bidder, up to their maximum amount.
How Our System Works
- Setting a Maximum Bid: When you place a bid, you enter the maximum amount you're willing to pay. This amount is kept confidential from other bidders.
- Incremental Bidding: Our system automatically increases your bid by the smallest possible increment needed to maintain your position.
- Outbid Notifications: If another bidder places a higher maximum bid, you'll receive an outbid notification on screen and via email.
- Winning the Auction: If your maximum bid is higher than all others, you win at the lowest possible price that exceeds the second-highest bidder's maximum by one increment.
Bid Increment Table
The increment amount varies based on the current price:
- Under $100: $5 increment
- Under $500: $10 increment
- Under $1,000: $25 increment
- Under $5,000: $50 increment
- Under $10,000: $100 increment
- Under $50,000: $250 increment
- Over $50,000: $500 increment
Example Scenarios
Scenario 1: You're the First Bidder
- Item starting price: $100
- You set a maximum bid of $200
- The system places a bid of $100 on your behalf
- Your current bid shows as $100, but your maximum is $200 so you win at $100 (assuming it's above the seller's floor)
Scenario 2: Another Bidder Enters
- Continuing from Scenario 1, another bidder sets a maximum of $150
- The system automatically increases your bid to $155 (one $5 increment above $150)
- You remain the highest bidder
Scenario 3: You Get Outbid
- A new bidder sets a maximum of $250
- Since your maximum is $200, the system increases your bid to $200 (your cap)
- The new bidder's bid becomes $205
- You receive an outbid notification
Important Rules
- No Cancellation: Once a bid is placed, it cannot be canceled or reduced
- Bid Verification: All bids undergo verification
- Sniping Protection: Auctions extend by 30 seconds if a bid is placed near the end
- Multiple Maximum Bids: If two bidders set the same max, earlier bid takes precedence
- Reserve Prices: Items won't sell unless bidding meets or exceeds the reserve
Tips for Effective Proxy Bidding
- Bid your true maximum — the highest you're actually willing to pay
- Don't use round numbers — try $202.50 instead of $200 to edge out competitors
- Check auction end times — monitor high-value items near close
- Enable notifications to get outbid alerts