Whats the difference between a Reserve and a Shill bid?
seemyauction
Posts: 3,655 ✭
seemyauction
Posts: 3,655 ✭
seemyauction
Posts: 3,655 ✭
Comments
edit, the other makes people think that there is interest in the auction at that price point.
<< <i>one costs the seller money. >>
which one?
<< <i>Shill is cheaper....no fee..... >>
That depends on what state the auction is held in.
In some states Shill bidding is legal, provided that the auctioneer receives the commissions as per the contract.
- Jim
<< <i>eBay charges you for "Reserve Not Met" listings. The charge is based on how much your reserve is. If someone is unethically having their associates drive up the price through "shill" bids, they can start the auction at 99¢, which only costs them 20¢-25¢ to list. >>
They still have to pay the commissions associated with the end of the auction.
Where is ebay located? what are the laws in that state reguarding shill bidding?
Pay attention to an auctioneers advertisements, if they advertise Absolute Auction, then there are no reserves and no shills. Absolute means it will sell to the highest bidder.
One is below the belt.
<< <i> Where is ebay located? >>
Northern Ca. somewhere.
- Jim
So even though I hate auctions with reserve auctions, I despise known shriller.
Does ebay have a liscense to conduct auctions in the state they are located in?
The state of PA passed legislation that requires auctioneers to have a liscenes to sell online. You can sell your own items online without a liscense, but you can not sell someone elses items.
So if your in PA running an ebay drop off store you better look into it.
Worry is the interest you pay on a debt you may not owe.
"Paper money eventually returns to its intrinsic value---zero."----Voltaire
"Everything you say should be true, but not everything true should be said."----Voltaire
<< <i>What is the difference openess and deciet? >>
How is a hidden reserve open?
Worry is the interest you pay on a debt you may not owe.
"Paper money eventually returns to its intrinsic value---zero."----Voltaire
"Everything you say should be true, but not everything true should be said."----Voltaire
<< <i>For all practical purposes there is no difference. In both cases the seller is protecting himself by making sure his coin doesn't sell too cheaply. >>
I agree, the only difference is a question of Morals.
Some may claim that a shill bidding violates The Sherman Antitrust Act (1890)
<< <i>A reserve is set in advance and if done correctly usually represents a very conservative estimate of the item's value. A shill is dynamic and is usually seeking to get a price above fair market value. >>
If a shill seller is unrealistic, he will not only not sell his coin but he will wind up paying all the auction fees as the buyer.
Worry is the interest you pay on a debt you may not owe.
"Paper money eventually returns to its intrinsic value---zero."----Voltaire
"Everything you say should be true, but not everything true should be said."----Voltaire
<< <i>If a shill seller is unrealistic, he will not only not sell his coin but he will wind up paying all the auction fees as the buyer. >>
I'm sure they go through the motions to get their final value fees back.
<< <i>How is a hidden reserve open? >>
The fact that a reserve is in play is part of the terms of the auction. The amount of the reserve is not known until the reserve is met.
Leo
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<< <i>
<< <i>How is a hidden reserve open? >>
The fact that a reserve is in play is part of the terms of the auction. The amount of the reserve is not known until the reserve is met.
Your correct, its up to the auctioneer how they want to handle the reserve, as a hidden or open.
Some states require the auctioneer to inform the bidder there is a reserve, but not all states do.
<< <i>Yes... there's definitely a difference. Shill bidding is deception. Shills are trying to artificially drive up the price of a coin by posing as another potential buyer. >>
If you bid $400 at a real auction and the auctioneer then says "I have 425" you cannot know if your bid was raised by another bidder or by the auctioneer bidding up
to the sellers reserve. So in the real auction world, a RESERVE ALSO poses as "another potential buyer."
The only reason ebay makes such a big deal about "shills" is that sellers can avoid ebay fees by starting the auction at the lowest tier and having a
buddy raise it to the reserve that they wanted anyway.