Despite being a regular online shopper for well over four years, I was an auction virgin until early in '99. I made my first foray into bidding online shortly after Amazon started up its auction site. I chose Amazon over eBay largely because I've received nothing but excellent customer service from the company's book department over the years. I'm also familiar with the rest of Amazon's site, so I found the auction site's navigation comfortable.
I spent a while looking around the site, checking out the help and frequently asked questions. I then registered. Amazon already had my credit card details as an existing book customer, but new users can sign up using their Visa, Mastercard or American Express or a number of other (US-based) cards.
I used the keyword search to locate a game of Pictionary, which none of my local stores seem to stock. Listed as new and unopened, the current bid was $US5. I entered a Bid-Click (Amazon's name for automated bidding) of $20.
I watched with amazement as the bidding jumped immediately to $16, with my bid the currently winning bid. What was happening?
Most auctions feature this style of automated bidding (also called proxy bids, RoboBids, and various other names): you nominate the highest amount you're willing to pay for an item. The Bid-Click agent then goes to work for you. First it bids the minimum amount to make a winning bid. Other people's agents may then kick in, automatically upping their bids. Your agent will bid again (provided it hasn't reached your ceiling) in an attempt to become the winning bid once more. Within seconds, the agents will have done their work, and the winning bid will have jumped, sometimes considerably. If your Bid-Click amount is the highest, your agent will have bid the minimum amount needed to outbid all the other agents. Provided no-one comes along later to outbid you, you'll be the winner. Amazon (and most auctions) notify you by e-mail if you're outbid, giving you a chance to rush back and make a last-minute pre-emptive strike. I had no need to do so, as I was never outbid.
Once I'd wet my feet with a low-key auction, I bid on a brand new Olympus D400Z digital camera. Before doing so, I checked out magazine advertisements and Web sites to see the going prices. I was very glad I did so. I decided I didn't want to spend more than $US300 and placed a $300 Bid-Click. I was immediately outbid. The temptation to raise my initial Bid-Click was enormous, but I resisted realising that this is one of the highly seductive pitfalls of online auctions. It's surprisingly difficult to connect a that click of the mouse with a real-world financial commitment, especially when the selling environment generates the atmosphere of a game or challenge, so it really does pay to set a rigid limit first.
Amazon's automated system notified me when the auction closed so I checked out the final bid. That D400Z went for $840 —well over the price you can get retail if you shop around, indicating that someone else hadn't done their research.
© 1999, Rose Vines
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