eBay auctions are about to undergo a major change in Australia, as extended bidding is moving from just a limited test to a full expansion to all auctions. This change is a major shift for eBay, as it keeps the final moments of an auction open for longer as long as bids are still flowing in.
This feature is likely to be popular among sellers as it may lead to higher final sale prices and more bidding activity, but many sellers, especially those who would often try to “snipe” items for less than their true market value, may not feel the same way.
Extended Bidding Rolling Out to All Auctions in Australia
In a post on the company’s community forum, eBay has announced that extended bidding is rolling out for all auctions in Australia, beginning on August 17th. While this is a major change that alters how auctions run on the platform, the way it works is quite straightforward.
If someone bids on an item within the last minute of an auction, the auction time is automatically extended and reset back to 60 seconds until there’s no more bidding. The auction will only end if that 60-second timer expires with no one placing a bid during it.
No matter if someone places a bid with 58 seconds remaining on the timer, or three seconds, the auction will automatically be extended another minute.
This gives other interested buyers time to respond, as opposed to everyone waiting until the last second to try and place the final bid that ends up winning the auction. This should often result in a fairer auction, where an item’s sales price ends up being around what it’s worth.
While extended bidding is coming to all Australian eBay auctions shortly, it remains just a limited test in other markets like the USA, UK, Canada, and other regions as of right now.
The Reasons for the Change
In the post announcing the change, eBay says it made the change to level the playing field for buyers and allow committed buyers to place their best bid. It also said the change ensures that auctions end not by a rigid clock, but come to a natural end based on bidding activity.
The move also helps more potential buyers stay in the action and respond to bids from competitors, rather than get outbid at the last second on an item they really wanted. Finally, eBay wants the end of an auction to be clear, visible, and decisive, so buyers and sellers alike understand what’s happened and how much an item has gone for.
Traditionally, the last few seconds of an eBay auction may be mayhem as multiple people may try to make competing bids within the last few seconds, which often makes it unclear which buyer won the auction, and how much the item actually sold for.
Sellers May Love the Change
While the change doesn’t go live for all auctions for another few weeks, there’s a good chance that when it does, buyers and sellers will have different thoughts about it.
On one hand, sellers are likely to be elated about the news. With auctions staying open longer and giving every interested bidder a chance to participate, more items will have a chance to reach their actual value, rather than selling for less. In fact, eBay said that in its pilot, this feature led to stronger bidding activity, and often higher prices on high-demand listings.
This is the latest move in a string of decisions eBay has made that sellers largely approve of, such as bringing video ads into promoted listings, as well as preventing buyers in the US from cancelling winning bids.
Buyers May Think Differently
On the other hand, for buyers, it all but eliminates “sniping” on the platform, which is when someone makes a bid in the final seconds of an auction to get an item, thus preventing other buyers from having time to react and compete.
Many people spent a ton of time and effort sniping on eBay, either manually or through tools, to try and get items for below market value. This new method for auction ends essentially prevents this from happening.
The change may also force people to sit and babysit an auction for multiple minutes (or longer) if they want to win it, as opposed to making their bid and immediately knowing if they’ve won or lost an item.
Of course, not all is bad for buyers, as some buyers may appreciate the ability to actually compete on items they want and not miss out because they were a second late on a bid.
Our Take
This Expansion Points to a Wider Release in the Future
While only officially rolling out in Australia so far, this move lays the groundwork for a more widespread release of the feature in the future.
If the move does roll out on a broader scale, it’s likely a good thing for sellers as it gives each item more time to attract bids and reach a higher sales price. However, sellers also need to be prepared for the potential downsides of this change being implemented.
First, plenty of eBay buyers have already said they won’t be bidding on auctions once changes like this go live. It remains to be seen if people actually mean this or if they’re just upset about the news, but a large and widespread boycott of bidding on auctions could be problematic for sellers.
The move may also discourage casual buyers who don’t want to (or don’t have the time to) sit and bid back and forth with others for an item, which may limit your pool of potential bidders in some cases.
Finally, because this change creates a sense of urgency and competition during auctions, and people may get caught up in the heat of the moment, sellers need to prepare for higher non-payment rates if people regret their purchase.
