Auction Help - About Bidding in Online Auctions

About Bidding in Online Auctions

For customers who have never bid in an online auction the process can be quite confusing. Unlike an auction hall where you wave a paddle to bid an amount mentioned by the auctioneer, or call out your own high bid to try and scare off other bidders, Mandarake's online auctions use a maximum bid system.

When you place a bid, you are telling us the maximum amount you want to bid. If you feel happy paying up to 10,000 yen for an item, enter that amount (as long as the auction will allow). You'll find out straight away if you're winning the auction or not, and if you are what the minimum bid is.

Let's look at the examples below for a clearer idea of how Mandarake's online auctions work.

・ An Auction With No Bids
・ An Auction With Bids
・ Important Points to Remember
・ Bid Examples

An Auction With No Bids

This auction currently has no bidders and the starting price (first minimum bid) is just 5,000 yen. Bidder 1 wants to enter this auction, so they only need to place a maximum bid of 5,000 yen. Remember that when we place bids, we are entering the maximum we are prepared to pay.

Bidder 1 is now winning this auction. If another bidder wants to join the auction their maximum bid must be at least 5,500 yen, which is the new minimum bid. This is worrying for Bidder 1 because they might lose the auction. Bidder 1 is happy to pay up to 6,500 yen for the item, so they raise their maximum bid.

Since there are no other bidders, if the auction ends now Bidder 1 will only have to pay 5,000 yen which was the starting price (first minimum bid). Bidder 1's maximum bid is hidden, and potential bidders will only be able to see the current price (5,000 yen) and the minimum that they have to bid to try and join the auction (5,500 yen).

An Auction With Bids

Bidder 2 wants to join the auction. They do not know what Bidder 1's maximum bid is, but they are happy to pay 6,000 yen for this item. So they bid 6,000 yen.

Unfortunately for Bidder 2 even though the current price is 6,000 yen (the same as their maximum bid) they are still losing the auction. This is because Bidder 1 either has a higher maximum bid than Bidder 2, or they have the same maximum bid but Bidder 1 placed their bid first.
Bidder 2 really wants this item, so they place one more bid using the minimum amount (6,500 yen).

Unfortunately for Bidder 2 it is still not enough. The current price is 6,500 yen and the minimum bid amount is 7,000 yen. Bidder 2 still does not know how much Bidder 1 has bid. If the auction ends now Bidder 1 will win the auction and pay 6,500 yen.
Bidder 2 decides to bid one last time.

Congratulations, Bidder 2!
Bidder 2 is now winning the auction. The current price is 7,000 yen and the minimum bid amount is 7,500 yen. If the auction ends now Bidder 2 will win the auction and pay 7,000 yen.
Just like earlier, other bidders do not know what Bidder 2's maximum bid is.

Bidder 3 really wants this item. They can see that the current price is 7,000 yen and a minimum bid of 7,500 is required. The auction is ending soon, but they have to buy groceries so will not be around for the end of the auction. Bidder 3 decides to set a high maximum bid to try and win the auction.

And just like that Bidder 3 takes the lead. Even though they placed a maximum bid of 10,000 yen, the current price is 7,500 yen and the minimum bid amount is 8,000 yen.
The other bidders can not see Bidder 3's maximum bid.

With just a few minutes left of the auction, Bidder 4 decides to place a bid. They know the current price is 7,500 yen and the minimum bid is 8,000 yen, but they decide to place a maximum bid of 8,500 yen.

Unfortunately for Bidder 4 it's not enough. The current price is 8,000 yen (the same as their maximum bid) but they are still losing the auction. This is because Bidder 3 either has a higher maximum bid than Bidder 4, or they have the same maximum bid but Bidder 3 placed their bid first.

The auction is just about to close but Bidder 1 decides to make one last bid for 10,000 yen.

Unfortunately for Bidder 1 it's not enough. The current price is 10,000 yen (the same as their maximum bid) but they are still losing the auction. This is because Bidder 3 either has a higher maximum bid than Bidder 1, or they have the same maximum bid but Bidder 3 placed their bid first.
The auction closes and the winner is Bidder 3. The final price is 10,000 yen.

Mandarake Auction Bid Examples

Last Updated: 25 December 2018

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