Since eBay made auctioning a household activity, millions of people around the world have been introduced to the science (or black art!) of bid and counter-bid. A particular business process difference between eBay and most B2B auction systems is the fact that eBay auctions have a finite and fixed deadline, giving rise to the practice of ‘sniping’ – a flurry of last second bid activity designed to try and secure the goods by coming in with a new price so close to the event deadline that other bidders are unable to respond before it ends.
So common has this practice become that it has even given rise to a new online service sector – the automated sniping assistant, as seen in sites like Auction Sniper.
The company’s own description of its services runs as follows: “Auction Sniper is an eBay sniper that automates the process of placing your eBay bid in the closing seconds of any eBay bidding auction, dramatically increasing your chance of winning. We keep it simple: you tell us what you want to win, and we snipe eBay for you.”
This remote sniping, while potentially securing a good deal for the user, can have damaging effects on the seller, other bidders and even eBay itself. The practice not only means that goods sell for less than they might have done (assuming the other interested parties had had sufficient time to place a counter-bid), thus hurting the income of both buyer and eBay, but also means bidders that ‘play fair’ may well become disenfranchised.
B2B auctions, on the other hand, typically have an (administrator-set) extension period that automatically extends the auction deadline should a bid be received near the end of the event. All bidders therefore have a chance to respond and counter if they wish, ensuring a fair and level playing field and securing best price/value for the seller/buyer (depending on whether a forward or reverse auction).
Perhaps the likes of eBay will move this way ultimately, but in the meantime you’ll have to keep on your guard if you’re after any last minute bargains!
