Definition:
Proxy bidding is the part of the eBay bidding system that most often confuses new members or bidders. Under the proxy bidding system:
- A bidder tells eBay the absolute maximum that he or she is ever willing to bid for an item.
- eBay places a bid on his or her behalf.
- eBay continues to bid on his or her behalf, whenever he or she is outbid by another member's bid, until the maximum is exceeded or the auction is won.
Keep in mind that eBay automatically performs proxy bidding on behalf of every bidder in an auction. The net effect of this technology is to remove the need for bidders to actually monitor auctions in real time in order to win them at fair market values.
Proxy bidding is the most distinctive influence on the way that eBay bidding works.
