What is a Proxy Bid in an Auction?

  • Adam Armsworth
  • Calendar-icon Jun 12, 2023
  • clock-icon 17 min read

What is a Proxy Bid?

Welcome to the exciting world of auctions, where the rush of competition and the thrill of securing desired items can ignite your passion. A proxy bid is a term that you might be familiar with if you have participated in an auction. It can have a significant impact in an online auction for the owner, as well as the bidder. So, let’s embark on a journey to demystify proxy bidding, starting with its definition and exploring why it holds such great importance in online auctions.

Definition of Proxy Bidding

Proxy bidding is also called automatic bidding. It is a method to bid in an online or in-person auction. Proxy bidding is a revolutionary technique that empowers bidders to set a maximum bid on an item of interest before the auction commences. This maximum bid represents the highest amount the bidder wants to pay. As soon as the bids start, the proxy holder increases the bid of the person auction by fixed increments until his highest amount unfolds.
In case the bidder is keeping an eye on the auction, at this point, he can increase the bid or give up. This helps people choose to simultaneously bid on multiple items. This ingenious process keeps bidders competitive without requiring their constant presence, turning the auction into a battle of wit and strategy. The beauty of proxy bidding lies in its ability to engage in bidding wars without requiring constant monitoring or active participation from the bidder.

Why is it Importance to know about Proxy Bid in Auctions

Proxy bidding is crucial as it provides bidders with a strategic advantage, enabling them to participate effectively and increase their chances of securing coveted items. By understanding and utilizing proxy bidding, bidders can:

  • Stay Ahead of the Game: Proxy bidding empowers bidders to set their maximum bid before the auction starts, ensuring they are prepared and positioned to compete effectively.
  • Avoid Time Constraints and Geographic Limitations: Traditional auctions often require bidders to be physically present at a specific location during a specific time. However, with proxy bidding, participants can engage in auctions from anywhere in the world.
  • Engage in Multiple Auctions Simultaneously: Proxy bidding grants bidders the ability to participate in multiple auctions concurrently. Instead of being limited to a single auction, bidders can expand their reach and pursue various items of interest simultaneously.

How Does a Proxy Bidding Work in an Auction?

what is a proxy bid

Setting a Maximum Bid

Proxy bidding begins with the bidder setting a maximum bid, which represents the highest amount the bidder can pay in the auction. This maximum bid serves as the bidder’s instruction to the auction platform or system. The maximum bid is kept confidential, ensuring that other bidders remain unaware of the bidder’s predetermined limit.

Incremental Bidding Process

The auction system automatically places bids on their behalf in predetermined increments. These increments are usually predetermined by the auction rules and guidelines. As other bidders place their bids, the system responds by incrementally increasing the proxy bidder’s bid to maintain their position as the highest bidder. This process ensures that the proxy bidder remains engaged in the auction without needing to constantly monitor and adjust their bids manually.

Automatic Bid Increases for Proxy Bidders

As other bidders place higher bids, the system automatically increases the proxy bidder’s bid to surpass the competition, up to their maximum bid. This feature enables the proxy bidder to maintain their lead without requiring constant manual intervention.


Why Should You Use Our WordPress Auction Plugin?

The market size of online auctions is constantly increasing and is expected to reach $1.13 billion by 2023. It is gaining popularity and using a Proxy Bid can help your company capitalize on that moment.

There are a few primary reasons why using a Proxy Bid plugin is an excellent choice. For starters. You do not have to work with a developer for building functionality for your WordPress site. Rather, you can install a plugin for saving valuable money and time.

  • All thanks to the proxy bidding system, users don’t have to keep monitoring the auction continuously. Instead, the system will take care of the bid for the readers.
  • The plugin can also help in saving money in some cases that you might have otherwise lost in a standard auction process. For instance, if a user wants to place a bid of $1000 for some product for a particular item and another user has already bid $500, the system is going to place $505 for the second user. After this, if no other bidder is placing a bid on the same product until the auction ends, the second user is going to win the bid at a much lesser amount than he had put in.
  • Proxy Bidding plugins have come with a range of capabilities that vary from helping you host auctions to letting visitors participate in the auction all by themselves.

How Proxy Bid Ensures Fairness in Auctions:

Confidentiality of Maximum Bids

One of the fundamental aspects of ensuring fairness in auctions is maintaining the confidentiality of maximum bids. When participating in proxy bidding, bidders set their maximum bid privately, without disclosing it to other participants. This confidentiality safeguards bidders’ strategies and prevents others from manipulating their bids based on knowledge of their predetermined limit.

Level Playing Field for All Bidders

Fairness in auctions rests upon the principle of a level playing field, where every bidder has an equal opportunity to succeed. With proxy bidding, all participants have an equal chance to place their maximum bid before the auction starts, ensuring that everyone starts on an equal footing.

Transparency in the Bidding Process

Transparency is a crucial element in maintaining fairness and trust in the auction process. While the maximum bids are kept confidential, the incremental bidding process ensures transparency during the auction. All participants can see the current highest bid, providing visibility into the ongoing competition.

How you can do Proxy Auction using our Auction Script

In case you are looking to install the WordPress auction plugin, we will explain this through our example below. So, let’s proceed.
To activate the Proxy Bidding setting, navigate to the “Auction” tab page to go to Auction and then “Settings”. Under Settings, there is “Proxy Auction Settings”.

Enabling Proxy Bidding

what is a proxy bid
Proxy bidding or an automatic system enhances bidding flexibility by eliminating the need for constant re-bidding whenever another bid is placed. When you place a bid, you specify the maximum amount you are willing to pay. The seller along with other bidders doesn’t know the maximum bid. The plugin will automatically place bids on your behalf, incrementing the bid amount based on the current bidding level. It will bid up to the necessary amount to ensure that you maintain the highest bidder position, up to an optimal threshold.

wordpress auction plugin

Checkmark the “Enable Proxy Bidding” option as shown above. When you activate the proxy bidding option, you will see the option ‘This auction is under proxy bidding’.

Mask Username

The auctioneer software gives you the option to hide the username. Admin can enable it if they do not want to show it within the Auction Detail page. In case you activate option Mask Username, the tool is going to add ***** to your name and won’t display the username.

Mask Bid Amount

Like hiding the username, the tool can also hide the bid amount. Admin will enable it if they want to show it within the Auction Detail page. In case you activate the same, it is going to showcase ***** rather than the bidding amount to all other auctioneers.

Ultimate Auction Pro – Reliable Auction Script for you

Ultimate Auction Pro is one of the best proxy bidding plugins to install. With its installation, you can unlock its most powerful features and sell a product at the best price. Ultimate Auction Pro offers the best industry-standard features. Take a quick look at them-

  • Pro Plugin integrates with WooCommerce-based Multi-Vendor Plugin for free. It has a Front-End Dashboard to add products on your website for online auction.
  • Ultimate Auction Pro Plugin enables the admin to add a premium amount along with the bidding price for the auctioneer or for themself.
  • This wordpress auction plugin enables you to guard your auctions against snipers. With Ultimate Auction Pro, the administrator can set the time interval for automatic extension of the auction end time.
  • The Silent Bidding mechanism of the plugin is a feature that ensures that users aren’t aware of the bidding amount of the other. It also enables you to configure if you want to receive multiple or one bid per user.
  • The tools allow you to add multiple auction products in a single upload. It works just as the default WooCommerce bulk upload.
  • In case your auction doesn’t have a winner, you can relist automatically depending on three conditions. Either no one has bid or the winner hasn’t paid or the reserve price hasn’t been met. It also allows the admin to relist manually. These features can help the admin to sell the auction products.

Main Workflow

Here is the step-by-step guide on how Ultimate Auction Pro works-

Admin and Vendor Add the Auction

To add auction products to the WordPress side, the admin will first have to add the plugin and then add the Ultimate Auction Pro bidding plugin. Also, it will let users be vendors on the site.

Users Register for Bidding

Visitors have to register on the website for placing bids on the auction. Admin can enable the option to collect the Credit Card details during the registration process.

Browse and Request Additional Details

Users can check out the photos and descriptions of the products. The plugin also lets users send messages for queries about the product, privately.

Timed Bidding

In case you are participating in a timed auction, you can place the optimum bid and the system will bid for you based on the bidding increments below the lowest competitive price. Keep in mind that the maximum bidding amount will only be executed when there is a competing bidder bidding up to that amount.


Bidders winning in the bidding initiative will receive a notification and the product is going to be added to the checkout page. An individual who has won the bid will have to enter the billing address and pay for the item they have bid for. PRO’s business license has a unique feature for automatically deducting the winning amount from the credit card of the winner and transferring it to the Stripe account of the Seller.

Bottom Line

Auctions are one of the features of a website that can be deceptively complex, especially when you try to implement them all by yourself. Proxy bidding technique revolutionizes the way participants can compete in an auction, offering convenience, control, and strategic advantages. Nevertheless, a WordPress plugin handles most of the world, leaving only the most important settings up to you. It grants bidders the flexibility to participate remotely, eliminates the need for constant monitoring, and ensures that they can engage in multiple auctions simultaneously.
Choosing Ultimate Auction Pro is one of the best Proxy Bidding tools where users can benefit from the inbuilt features. With this plugin, you can stay ahead in the game. The plugin can develop a strong and simple site where you can sell regular, as well as auction-able items together.


What is a proxy bid in an auction, and how does it work?
Can I change or cancel my proxy bid in an auction?
How does a proxy bid help me win an auction?
What are the benefits of using a proxy bid plugin for WordPress?
Can a proxy bid plugin be customized to suit specific auction requirements on WordPress?

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