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What Are Dutch Auctions and How Do They Really Work?

by: mermaid142( 1372Feedback score is 1000 to 4,999) Top 1000 Reviewer
1 out of 1 people found this guide helpful.


Multiple Item Auctions (Dutch Auctions) can be confusing at first because they do not follow the regular bidding methods, so read up on them before you venture into one. 

this is the link to the eBay Help Page for Bidding in a Dutch Auction

I've outlined a few pit falls, and a few hints. Included some links to eBay Help pages, and hopefully prepared you a little more for an unusual eBay auction method.

I found out about bidding on Dutch Auctions on eBay the hard way - I was really new at selling on eBay and I listed 4 of the same item for auction - and found all my buyers were confused! So was I. They all emailed my questions which I couldn't answer. Yikes!

So I researched what I had done, and wrote an explanation, as best I could, in the description of the items. I try to avoid Multiple Item Auctions now.

They are more than a little confusing; some people didn't know if they were getting one or four items, and their automatic bidding wasn't working, some paid more than they thought to win the 4 items, but really it was a bid on each item - and to top it off it is possible for more than one person to win a Dutch auction - and you wonder why we were all confused and I avoid using them now. Nothing a little reading and preparation can't fix.


Here we go:

This information is from eBay Help Topics "Buying Multiple Items In a Listing (Dutch Auction)"

  • "When you see an auction-type listing offering two or more identical items, this is called a Multiple Item Auction (also known as a Dutch Auction)."

  • "This means the seller is offering multiple, identical items for sale. Unlike a regular eBay auction, Multiple Item Auctions can have many winners."


IMPORTANT INFO:

  • When you bid - you specify the number of items you are bidding on, and the price per item is how much you are willing to pay per item, your "total bid value" will be the number of items x the bid price per item.

  • You CANNOT lower your "total bid value"

  • You CANNOT use eBay's automatic bidding system to enter a maximum bid (or proxy bid)

So here's my take on it - if you see an auction who's quantity is more than one identical item, be prepared.

You have to decide you want 4  of the 8 pillowcases and that you will only pay $2.00 each for them.

So your "total bid value" is $8.00 - you can't use your auto bidder to deal with this - you have to check back to see if you're still a winning bidder, click the "bidders List" and you'll see who's bid how much for how many - and if you want to get into it any further.


The good part is if you stop now, you might still be one of the winners as there can be more than one. Also if you don't win all 4 pillowcases you wanted, and we know three is useless, you don't need to accept any of them.


I really hope that helps clear up the mud a bit, I guess the best advice I can give is  - be careful - read about Dutch Auctions:  before getting too frustrated or disappointed. Once you've got the hang of them they're not so bad!


Nothing ventured, Nothing Gained.

regards, the mermaid


Guide ID: 10000000004324437Guide created: 09/06/07 (updated 06/12/08)

 
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mermaid142
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