How It Works
A seller lists an item with a minimum bid price known as the ‘opening bid’.
This is the minimum amount a seller is willing to receive for that item. No bids are accepted below this price, considered the floor price. Once bids are received this floor price increases setting a new low for acceptable bids.
The floor price goes up based on a tiered bidding structure. That is, there is a minimum increase in the bid based on where the current bid price is. This could be as low as $0.25 (for all bids under $10) or as much as $100 (for bids over $10,000)
An interested buyer can bid a price that they are willing to pay for that item, this price can be at the minimum acceptable bid or higher.
This is considered the ceiling price for that specific bidder. Another bidder can have a higher bid or ceiling price.
A buyer can ‘win’ the item at a price lower than their highest bid if no other bids are received.
Example:
| Sequence | Stage | Opening Bid | Winning Bid | Winning User | New min bid (Floor) | Max bid (Ceiling) |
|---|---|---|---|---|---|---|
| 1 | Item Listed | $59.00 | - | - | $59.00 | - |
| 2 | Bidder(A) bids $75 | $59.00 | A | $60.00 | $75.00 | |
| 3 | Bidder(B) bids $70 | $71.00 | A | $72.00 | $75.00 | |
| 4 | Bidder(C) bids $75 | $75.00 | *A | $76.00 | $75.00 | |
| 5 | Bidder(C) re-bids $85 | $76.00 | C | $77.00 | $85.00 | |
| 6 | Time expires | $76.00 | C | - | $85.00 |
*With tied maximum bids the first bidder of the tied amount has the advantage and wins the auction.
In the example above, both the seller and buyer exceed their goals; the seller is willing to sell the item for as little as $59 but gets $76 for the item. The buyer even though is willing to pay up to $85 for the item gets it at $76.
This is how cBidz provides a Win-Win outcome for both, the seller and the buyer.
Check Bid Tiers and Increments