Online auction bidding strategies explained

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Online auction have seen exponential growth since the mid nineties and the real time access on smart phones and computers have paved way to the popularity of it. Having created a giant virtual marketplace, these high-traffic venues offer favorable purchasing conditions to buyers and help the sellers find perfect buyers. To be more precise, buyers enjoy transparency in the procurement process, effective savings on purchase, elevated buying power by means of wider supplier network, and zero administrative hassles, on the other hand, sellers enjoy connecting to buyers globally, fair participation of vendors, access to genuine buyers, and bidding anytime anywhere. Well, having said that, when it comes to online auction, the only factor that impedes between you and a great buy are the other bidders. This piece of writing will reveal some of the strategic approaches to bidding which will help you win the auction.

Do not get into a bidding war:

Its easy to get caught in a bidding war, but always remember when you try to outbid or trick your opponent, you always end up paying more, hence, make sure that you observe things sharply and act accordingly. Stick to your budget, no matter how lucrative the deal may seem to be, it is good to follow a strategy, but keeping a level head is the only way to win.

Set a reserve price:

When you set your foot in an online auction, you should set a reserve price too, meaning a hidden price that the seller is willing to accept for an item and a buyer is ready to pay for as well. By doing so, both the buyer and seller will be benefited.

Stay true to your strategy and reveal that you mean business:

There are chances in certain occasions where auctions will start at a much lower price that you may deem a product is worth. As a serious bidder, you may want to cut back any bargain hunters even before they could drive attention. If not, they might scale up the price by counter bidding. In order to avoid this situation, you can follow the strategy of raising the bid price to a level closer to your maximum bid, by this means you show up that you are serious about the deal and mean business. Nevertheless, it is worth to note that you leave room between your initial bid and your maximum to take advantage of the situation. Together with this, remember that in this case, you are only eliminating the lowest competitors, however you may still need to raise your bid against other levelheaded serious bidders.

Hone in during the final minutes:

The finishing minutes of an online auction are exciting and it can change the initial things and there are more than a few accounts why last minute bidding is a common strategy. It avoids potential bidding war and helps bidders to obtain a product for a much lower price in fact. Therefore, seasoned bidders are motivated to engage in last-minute bidding as it results in cost-reduction. Another reason for this move is because bidding just before the end of the auction could scale up the chance of winning with a lower price as it leaves very less time to respond. To conclude, last minute bidding could be a tactical response to a deceitful seller. It forbids a shill bidder from driving the auction price higher.

Hope you found this article helpful. For more information about online auction and E-Tender strategies stay tuned to bidzpro.com