Pre Bidding
Pre-bidding is the first step of any online auction. During this period, for any auction prior to the real-time bidding starting on auction day, bidders are allowed to place bids on lots. Pre Bidding is the maximum bid placed on a product, before the auction it moves to live. The advantage here is these pre bids are not visible to all the bidders, so bidders may have no idea of other bidder is interested in that product or the amount they are willing to pay. But the pre bids will be visible with the current bid, once the auction is moved to live. The highest bid at the end of Pre-bidding becomes the starting bid for the live auction. The pre bid that is placed could be the winning bid, if no other bidders places highest bid till the auction end date is met.
Live Auction
Once pre-bidding end date is met, the auction will move to live, that is real time bidding. Here Users can place bids; they can also set auto bids. Based on the bid increment auto bids are placed. The current bid or next bid is updated based on bid increment.
How Pre-bidding is enabled?
When an auction is posted by the seller, they can enable pre-bidding for that specific auction, and set time for pre-bidding (i.e.) start time and end time. Once the start time is met it will allow user to place pre-bids. The highest bid at the end of Pre-bidding becomes the starting bid for the live auction.
Advantage
Choosing to place a pre-bid allows you to head into an auction with a sense of understanding or even of added confidence if you had the highest pre-bid. There is also a chance of winning the auction with the pre-bid if any other bidders didn’t place bid in live. Business Advantage of Pre bidding is, when the auction starts, the price would be a ball park figure of the market acceptable rate.
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