Imagine you and I are sitting somewhere quiet, just having a talk about electronic auctions.   Presumably, you have some ideas of your own, but I am going to give you my half of the conversation, trying to anticipate some of the things you might say.

As with any auction, the two best rules are to be sure of what you are buying and to be absolutely calm when you decide how much you will spend.

The more you know about the item, the more certain you can be that it is what you want.  You can ask the seller questions if you look before the last minute and you can sometimes refine your impressions of one item by looking at other similar items. It is important, though, not to assume anything, but to know.  In some cases, you may be bidding on something that has a style or model number. If possible, you should try to touch an item exactly like it. You would be surprised how often size and scale can be distorted by photographs.

Another thing to wonder about as you make your decisions is whether or not the item has been altered in any way- either by wear or use, or by design, as might be the case with a garment that has been tailored to fit someone. 

Don't be afraid to change your mind before bidding. This is another good reason to wait before you bid. You can always decide to bid later.

More bids make higher prices. If you know you want something, it might be useful to you to avoid bidding until you just can't wait any longer.  On the other hand, if you are a seller, it might be worthwhile to encourage bidding, say with a low opening bid, or several attractive photos, or by providing a detailed description, or all three. Be sure to answer all questions promptly. Knowledge is power. Exposure is the surest path to sales. Return customers are the best advertising.

The only time you need to be high bidder is at  the end. If you see someone else bidding against you every time, why not wait until the end, instead of letting him or her run up the price?  Do your research and see how often similar items have appeared and see how much they generally sell for. You may not be able to predict exactly, but you can look at "completed listings only" in Advanced Search and you can see how much people have paid. You can also see how often the same person may be bidding and how high they usually go. On the other hand, it doesn't hurt to put in one minimum bid, just in case you have a life that might interfere with bidding at the last minute.

Have a backup plan. What will you do if you are outbid? Will you bid on another item, or will you change your plan and bid higher? Do you have an overall scheme or plan for your  bidding? Do you have a weekly budget? Monthly?

Be sure about shipping costs and read the feedback on your seller, especially the most recent postings.

Do you know alternative places to buy or sell this item?  Have you checked to see what prices are like there?

If you are a new seller, have you considered buying a number of inexpensive items just to get your feedback up a little?  Do you post feedback promptly and encourage your partners to do the same?

If you are buying an item for resale, are you sure your ultimate customers aren't bidding against you? On the other hand, if you are bidding against people who will likely resell the item, a good rule of thumb is that you will always be fine at one bid over wholesale, or just a little more than the dealers are willing to pay.

Be aware of seasonal market variations and use them to your advantage. Try to sell when people are bidding like crazy (December) and buy when sales seem slow  (August). But be realistic about predicting your needs and size fluctuations.

Try to always have a little bit  of money set aside, so that you won't have to sell too low- also so that you can take advantage of a real bargain without having to go into debt.

Do you know how to inch up the bid to see how much another bidder is willing to spend?  If the increment is $2.50, and you bid up by $2.59, you can tell when the other bidder's top bid is being reached because you will eventually see the bid increase by less than the full increment.  Doing this in the last hour may help you gauge the other bidders' interest, but you should always count on at least one  silent watcher who may jump in at the end. Doing this with more than a day left is called running up the bidding. You can always learn the hard way that you  have bid more for an item than you really wanted it.

Remember a bid is a contract. All you have on eBay is your reputation.  Not paying for something is a sure way to find yourself paying retail.

Do you know to bid just under your top amount on things you aren't dying to have, but to always bid  just over a round number if you really want the item? Other bidders may bid, say $100, but your bid of $101.01 will beat them. By the time you have your item, that extra $1.01 will be a fading memory. Because a lot of people  already do this, you might consider going to 102.02.

If you are selling, you should  probably plan your auction to end at a time appropriate to the people who are likely to be bidding.  Are you discouraging people on one coast by ending it too early in the morning or too late at night?  If you have more than one of an item, have you tried sales ending at different times to see whether one works better than others?  If you have seasonal goods, are you going to be able to sell them all without competing against yourself? Have you got some available in your store at a price that will encourage bidding activity?  Can you encourage sales by offering express shippping?

I am sure you have added a lot of helpful responses to my questions and comments as you read this. Maybe you should write your own guide.  I hope you have found mine to be helpful and thought provoking.  Please remember that buying and selling at auction is fun, but it is not always profitable for both parties at the same time.   Also, remember, these are just things and they will never be as valuable as your friends and your family. Having said that, I am pleased to include among my friends people I have never met, but only know through the happy transactions we have shared on eBay. Take care, have fun, and please  take a look at my other guides and reviews!

WT