What is Shill Bidding (aka shilling, bid padding)?
This is where a seller bids on their own auctions. This can also include a friend or family member bidding as well IF the purpose of their bidding is to lose and help get the seller a higher price. This practice is forbidden on Ebay. The Proxy Bid This bid involves the use of Ebay’s automatic proxy system. Here, the bidder has entered a maximum bid that exceeds the minimum amount necessary in order to bid. If the proxy user’s initial bid is in turn outbid, then Ebay will bid on this person’s behalf until they either regain the lead OR their maximum has been exceeded (leaving the proxy bidder outbid). The value of the proxy bidder’s maximum bid is hidden to all buyers and the seller unless the proxy bidder is outbid. Proxy bids are common throughout the life of the auction. Incremental (aka. Lowball) Bid This is the type of bid which raises the current bid by exactly one increment. When this bidder enters their maximum bid, it always matches the minimum amount necessary in order to bid.
