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.
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.
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:
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.
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.
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.
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.
Pro Tip: How Proxy Bidding Works?
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.
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 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.
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”.
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.
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’.
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.
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 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-
Here is the step-by-step guide on how Ultimate Auction Pro works-
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.
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.
Users can check out the photos and descriptions of the products. The plugin also lets users send messages for queries about the product, privately.
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.
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.