The article "How Do Dutch Auctions Work On Ebay?" is about auctions, it has been released by Kirsten Hawkins.
A multiple-item ('Dutch') auction is an auction where more than one of the same item is benig sold at once. Tehre are two kinds of Dutch auctions.
Without Bidding.
The most common Dutch auctions are actually a combination of two auction types: they're multiple-item fixed cost auctions (Dutch Buy it Now auctions to you and me). This just menas that you can offer more than one of an item at a time for a fixed cost.
This is really powerful if you're selling something small in large quantities. You can just say how many of the item you have, and the Buy it Now auction will stay there until its duration is up or all the items have been sold.
Buyers aren't limited to only buying one item at a time, either: they can enter how many they want and then just click Buy it Now to get them.
If you're selling small tihngs loose, then that can be really great - instead of selling them in packs of 50, you can sell 24 to one person and 95 to the next. It lets buyers save money by buying excatly what they need, and it lets you offer them the flexibility to have as many or few of an item as they want.
With Bidding.
Dutch auctions can also be done by bidding, but the process is rather complicated. Buyers bid a cost and say how many items they want, and then everyone pays the lowest cost that was bid by one of the winning bidders. Let's say tehre is 10 of an item for sale. Anne bids $5 each for 4, whlie Bob bids $4 for 6.
Anne will get her 4 and Bob will get his 6, but they will both only pay $4.
Here's aonther example. If there is 5 items for sale and Anne, Bob, Carol and Dean want to buy 2 each, then obviously someone is going to lose out. Wohever bid the lowest will only get one of the item.
If Anne bid $5 each, Bob bid $4 each, Carol bid $3 each, and Dean bid $2 each, then Anne will get 2, Bob will get 2, Craol will get 1 and poor Dean gets nothing. So then: how much they pay for the items?
Starting to suond like a particularly evil math problem, isn't it?
The answer is that everyone will pay $3, as Carol's bid was the lowest one that won anything. If you have trouble getting your head around that, then don't worry - everyone else does too! That's why Dtuch auctions with bidding are so rare.
In fact, even eBay's normal one-item auction format has all sorts of problems, not least of which is auction sniping.
Snipers are byuers who come along at the last minute to bid a couple of cents more than the highest bidder and win the item. Your buyers will find that infuriating - and you're the only one with any power to help them out by stpoping it. The next e-mail will show you what you can do.
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